UK minister meets banks over soaring mortgage rates

LONDON, Oct 06 (AFP): British finance minister Kwasi Kwarteng on Thursday met UK banks to discuss mortgage interest rates that are soaring following his heavily-criticised budget.
The chancellor of the exchequer held talks with some of the country's biggest home loan providers, the Treasury said, amid the nation's worsening cost-of-living crisis.
Average two-year fixed mortgage rates have topped six per cent for the first time since November 2008, or global financial crisis, according to data provider Moneyfacts.
The average rate fixed for five years has also breached six per cent, for the first time since 2010.
British home-loan providers usually offer mortgages with a fixed interest rate for a set time period-typically two to five years-but then the rate becomes variable or a new rate is fixed in line with market conditions.
Average UK home-loan interest rates had for some time hovered near two per cent for a fix of between two and five years.
But they are now soaring after the Bank of England hinted at aggressive interest-rate hikes following the budget seen as adding to rocketing inflation.
In less than a year, the BoE has already lifted its main interest rate to 2.25 per cent from a record-low 0.1 per cent aimed at cooling historically high prices.
The situation has massively pushed up monthly mortgage repayments for households already struggling with sky-high energy bills.