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| Kwasi Kwarteng to meet bank bosses as mortgage rates soar | |
| (32 minutes later) | |
| Major banks are to meet the chancellor on Thursday, with the impact of the recent financial market turmoil on the mortgage market set to be discussed. | Major banks are to meet the chancellor on Thursday, with the impact of the recent financial market turmoil on the mortgage market set to be discussed. |
| The meeting is understood to be part of a regular series of talks but has attracted greater attention as mortgage rates soar and choice is limited. | The meeting is understood to be part of a regular series of talks but has attracted greater attention as mortgage rates soar and choice is limited. |
| This week the rate on a typical two-year fixed rate mortgage breached 6% for the first time in 14 years. | This week the rate on a typical two-year fixed rate mortgage breached 6% for the first time in 14 years. |
| Bosses from Barclays, NatWest and Lloyds are expected to attend. | Bosses from Barclays, NatWest and Lloyds are expected to attend. |
| Mortgage rates have been going up for months, but recorded a sharp increase in response to the fall-out from the mini-budget nearly two weeks ago. | Mortgage rates have been going up for months, but recorded a sharp increase in response to the fall-out from the mini-budget nearly two weeks ago. |
| On Thursday, the average two-year fixed rate mortgage had an interest rate of 6.11%, according to financial information service Moneyfacts. | On Thursday, the average two-year fixed rate mortgage had an interest rate of 6.11%, according to financial information service Moneyfacts. |
| A typical five-year fixed rate deal has now also moved above 6% for the first time since February 2010. | A typical five-year fixed rate deal has now also moved above 6% for the first time since February 2010. |
| First-time buyers and those looking to re-mortgage are affected. An average of at least 100,000 people a month are coming to the end of their current mortgage, and face a significant rise in their monthly repayments. | First-time buyers and those looking to re-mortgage are affected. An average of at least 100,000 people a month are coming to the end of their current mortgage, and face a significant rise in their monthly repayments. |
| Research from housing market website BuiltPlace suggests that rates of 6% mean that repayments on an average new mortgage will account for more than a quarter of household income. That is the highest burden on households since the recession of the early 1990s. | |
| 'I was ready to buy a house, now I'm totally lost' | 'I was ready to buy a house, now I'm totally lost' |
| Uncertainty over future interest rates after the mini-budget led lenders to pull more than a thousand deals from the market. | Uncertainty over future interest rates after the mini-budget led lenders to pull more than a thousand deals from the market. |
| They are slowly starting to return - there were 3,961 products a fortnight ago, now there are 2,430 - but have become more expensive on average. | They are slowly starting to return - there were 3,961 products a fortnight ago, now there are 2,430 - but have become more expensive on average. |
| Earlier this week, the UK's biggest mortgage lender, the Halifax, which is part of Lloyds Banking Group, raised its rates on a range of deals for new borrowers to well over 5%. | Earlier this week, the UK's biggest mortgage lender, the Halifax, which is part of Lloyds Banking Group, raised its rates on a range of deals for new borrowers to well over 5%. |
| Mortgage brokers say lenders are "playing safe" with rates amid current economic uncertainty, but costs could eventually start to dip. | Mortgage brokers say lenders are "playing safe" with rates amid current economic uncertainty, but costs could eventually start to dip. |