Chancellor could extend mortgage guarantee scheme

Kwasi Kwarteng is understood to be considering an extension to the Government’s mortgage guarantee scheme following a meeting with bank bosses on Thursday. Chief executives from NatWest, Lloyds Banking Group, HSBC, Santander and TSB along with executives from Barclays, Nationwide, Virgin Money and Starling Bank were asked to comment on a number of options to support consumers struggling to secure mortgages. The Chancellor is now mulling an extension to the mortgage guarantee scheme beyond its December deadline. The guarantee compensates a lender for losses suffered in the event of the property having to be repossessed and it is hoped that by extending it lenders will feel more confident offering reasonably priced low-deposit mortgages. Ray Boulger, broker at John Charcol, said an extension of the mortgage guarantee scheme would be “good news for anyone in need of a mortgage with only a 5% deposit.” 

Financial Times (06/10/2022)   The Guardian (06/10/2022)