NatWest, Lloyds, HSBC, Barclays and Santander leaders meet Jeremy Hunt in ‘productive’ mortgage crisis talks

Bank bosses held a “productive” meeting with Chancellor Jeremy Hunt as the rates increase worsens the mortgage crisis.

Natwest chief executive Alison Rose, speaking to reporters as she left Downing Street, said lenders were “doing everything we can” and were “very keen” to help customers.

Lloyds Banking Group boss Charlie Nunn described the meeting as a “good working discussion with the Chancellor”.

He said Hunt would make an announcement later today after the meeting with leading mortgage lenders following another rise in interest rates by the Bank of England (BoE).

‘Productive meeting’

Lenders including HSBC and Santander met with Hunt in No11 from 7.30am this morning as pressure mounts on the government to relieve pressure on families.

Other attendees included Barclays chief executive Matt Hammerstein, Virgin Money boss David Duffy, and Nationwide chief executive Debbie Crosbie.

Rose said: “We had a very productive meeting. We’re doing everything we can to help customers and help with the anxieties.”

Governor Andrew Bailey shocked markets in deepening the crisis in the bank’s 13th consecutive interest rate rise this week, as he hiked rates to five per cent in a 15 year high, prompting fears struggling homeowners would be unable to meet mortgage repayments.

Sticky inflation

It comes amid increasingly sticky inflation affecting the UK economy as it remained at 8.7 per cent in May, despite efforts to reduce it.

But prime minister Rishi Sunak and Hunt have ruled out financial intervention, despite Labour calling for banks to be compelled to help struggling mortgage holders.

Some backbench Tories have also demanded support for under-pressure borrowers. Financial markets are predicting interest rates will strike a six per cent high by the end of the year.

By Dominic McGrath, Harry Stedman and Sam Blewett, PA