Overview

• Banks will provide at minimum 12 months grace period before foreclosing on missed mortgage payments and will allow borrowers to temporarily change terms of mortgages without credit checks.
• Chancellor Jeremy Hunt met with major lenders to request more support for households after surprise interest rate hike though government ruled out direct financial intervention.
• Labour called for compelled bank support for struggling mortgage holders while some Conservatives demanded aid for stressed borrowers.
• Experts predict continued interest rate hikes could cost over 1 million mortgage holders at least one-fifth of disposal income in extra repayments.
• Bank of England hiked rates to highest in 15 years to curb inflation as homeowners and experts argue move won't significantly slow price growth but will strain mortgage holders.