UK's Hunt says banks agree to ease mortgage payments strain

BRITISH finance minister Jeremy Hunt said he had agreed new measures with banks and other mortgage lenders on Friday (Jun 23) to help homeowners who struggle to meet the cost of fast-rising interest rates.

“We agreed some very important things for people who are worried about their rates going up,” Hunt said, a day after the Bank of England raised interest rates to 5.0 per cent to fight high inflation.

The measures include allowing people who reduce their payments, such as by extending the period of their mortgage or moving to interest-only, to go back to their original package within six months with no impact on their credit rating.

Another measure sought to help people at risk of losing their home, with banks agreeing to a minimum 12-month period before a repossession without consent takes place, Hunt said after meeting representatives of the lenders. REUTERS