The city minister will call banks to a summit on first-time buyers

The City minister is to hold talks with some of Britain’s biggest banks in the run-up to the Autumn Statement as the government looks to expand its flagship scheme for first-time buyers.

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

The timing of the meeting had not yet been finalized on Monday, but Whitehall and industry sources confirmed that major banks expected to be called in ahead of the chancellor’s firm fiscal statement at the end of 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 allows home buyers to acquire properties worth up to £600,000 with just a 5% deposit, is said to top the list of possibilities.

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

The talks with industry come at a time when rising interest rates have put new financial pressure on millions of British households.

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

Nationally, the UK’s largest building society is also likely to be invited.

The Ministry of Finance has been contacted for comment.

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