UK finance minister to meet banks after market chaos

BRITISH finance minister Kwasi Kwarteng is expected to meet major high street banks later this week, Sky News reported on Wednesday (Oct 5), saying Barclays, Lloyds Banking Group and NatWest were among those due to attend.

The Sky report said that the meeting was planned for Thursday, and that Kwarteng was expected to “quiz lenders on their plans” as the market turmoil following his mini-budget led to higher mortgage rates.

The budget last month caused wild swings in the sterling funding markets, which determine what mortgage rates they offer to homeowners, as investors fretted over how the government would fund its plans.

Financial services provider Moneyfacts, which last week estimated that a record 935 mortgage products were pulled overnight, said on Wednesday that an average two-year fixed rate mortgage was now up to 6.07 per cent, compared to 2.25 per cent a year ago, while the five year rate rose to 5.97 per cent from 2.55 per cent. REUTERS