Chancellor Jeremy Hunt will meet with mortgage lenders on Friday to urge them to do all they can for borrowers struggling with high home loans. 

The meeting comes as the average two-year fixed residential mortgage rate jumped again today to 6.07%, according to Moneyfacts. 

The last time fixed-rate loans topped 6% was in the aftermath of former Chancellor Kwasi Kwarteng’s September mini-Budget.   

Around 1.4 million of these deals are due to expire this year, which were often signed at a rate of around 1.5%, leaving customers facing a sharp jump in their bills when they move onto a new deal.    

On Thursday, markets expect the Bank of England to raise the base rate by 25 basis points to 4.75%, the 13th rise since December 2021, as it bids to battle inflation. This would take the rate to its highest level in 15 years.   

“Later this week, I’ll be meeting the principal mortgage lenders to ask what help they can give to people struggling to pay more expensive mortgages, and what flexibilities might be possible for families in arrears,” Hunt told MPs in Treasury questions, the Guardian reported. 

Discussions are expected to cover a range of options such as mortgage holidays, extending terms to lower monthly payments and switching to interest-only payments. 

Yesterday, Prime Minister Rishi Sunak refused to consider a mortgage protection fund to help households struggling to cope with rising mortgage payments.   

Speaking on ITV’s Good Morning Britain, Sunak declined to back extra support for mortgage holders – specifically a £3bn mortgage protection fund which was proposed by the Lib Dems at the end of last week.   

The Prime Minister said the government needed to “stick to the plan”, of cutting inflation, currently at 8.7%, by half by the end of the year.   

The Chancellor last met with mortgage lenders in December to discuss options for homeowners in financial difficulties following his predecessor’s fiscal statement.