Britain’s biggest lenders have called on the chancellor to extend a mortgage guarantee scheme amid fears high interest rates could cut first-time buyers out of the housing market.
The current scheme, which is designed to help credit-worthy households that are struggling to save for higher mortgage deposits get on the housing ladder by compensating lenders for a portion of any losses on defaults, is due to end in December.
Concerns were also raised at the meeting about the effect of rising interest rates on the buy-to-let sector.
