Banks Agree to Provide Relief for Struggling UK Mortgage Holders After Government Rules Out Intervention

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.