City minister to convene banks for first-time buyer summit | Business News

The City minister is to hold talks with some of Britain’s biggest banks in the lead-up to the autumn statement as the government looks to extend its flagship scheme for first-time buyers.

Sky News understands that Andrew Griffith is to meet with mortgage lenders within the next fortnight to discuss an extension of the Treasury’s mortgage guarantee scheme into next year.

The timing of the meeting had yet to be finalised on Monday, but Whitehall and industry sources confirmed that major banks were expecting to be called in ahead of the chancellor’s set-piece fiscal statement in late November.

The Sunday Times reported at the weekend that a package of support for first-time buyers was being lined up for the autumn statement.

An extension of the mortgage guarantee scheme, which enables homebuyers to acquire properties worth up to £600,000 with only a 5% deposit, is said to top the list of options.

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A new form of ISA which incentivises savers to put money aside to buy their first home is also under discussion, the newspaper reported.

The talks with industry come at a time when the surge in interest rates has piled fresh financial pressure on millions of British households.

Banks including Barclays, Lloyds Banking Group and NatWest Group are expected to attend the talks with Mr Griffith.

Nationwide, Britain’s biggest building society, is also likely to be invited.

The Treasury has been contacted for comment.