City Minister Andrew Griffith is scheduled to meet with some of Britain’s largest banks to discuss the possibility of extending the Treasury's mortgage guarantee scheme into the next year.
As reported in Sky, the meeting is expected to occur within the next fortnight, as the government seeks to show support for first-time homebuyers in the lead-up to the Chancellor’s autumn statement in November.
The mortgage guarantee scheme enables homebuyers to purchase properties valued up to £600,000 with just a 5% deposit, and is especially beneficial for first-time buyers, offering them an accessible pathway to homeownership.
It has been instrumental in facilitating homeownership for many, so an extension would likely bolster support among the middle-class swing voters seen as key to Tory success in future elections.
The discussions with the banking industry are timely, given the recent surge in interest rates that has exerted additional financial pressure on millions of British households.
Major banks including Barclays PLC (LSE:BARC), Lloyds Banking Group PLC (LSE:LLOY) and Natwest Group are expected to take part in the talks.
Nationwide, Britain’s largest building society, is also likely to receive an invitation to the discussions.