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Lib Dems urge Sunak to ‘haul the banks’ to Downing Street over rising mortgage rates

  • 14/06/2023
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Lib Dems urge Sunak to ‘haul the banks’ to Downing Street over rising mortgage rates
The Liberal Democrats have called on prime minister Rishi Sunak to hold an emergency summit with banks and mortgage lenders to discuss the impact of rising mortgage rates on homeowners.

The political party wants the prime minister to talk with lenders about providing support to borrowers, particularly as speculation surrounds a further base rate rise from the Bank of England later this month. 

The Liberal Democrats also noted that several lenders have temporarily pulled mortgage deals from the market due to rising gilts. 

The party suggested creating an emergency support fund for homeowners most at risk of losing their homes to provide them with temporary grants. 

Sarah Olney MP, treasury spokesperson for the Liberal Democrats, said: “This Conservative government has unleashed mortgage hell for millions of homeowners but isn’t lifting a finger to help. 

“Rishi Sunak is totally out of touch with the concerns of people across the country worried sick about how they will afford their monthly mortgage payments.  

“The Prime Minister should haul the banks into Downing Street and discuss what extra support can be given to homeowners on the brink. The very least that Conservative Ministers should do is take responsibility for the mess they’ve created instead of sitting on the sidelines.” 


Support available 

The Financial Conduct Authority (FCA) has already alerted lenders to the financial difficulties that their customers may be facing and issued fines for their failure to adequately support people in arrears.

In May, the regulator launched a consultation to introduce permanent support measures for customers, based on some of the help that was provided at the height of the pandemic. 

It noted that the financial resilience of households in the UK was “weakening”. It suggested tailored support such as early communication with customers who may be struggling and capitalising mortgages, which is when missed payments are added to future monthly bills. 

The consultation closes on 13 July. 

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