Friday 30 September 2022 10:38 AM Question Time audience gasps as first-time buyer reveals mortgage lender told ... trends now

A young first time house buyer confronted a government minister over the market turmoil brought about by last week's mini budget on Question Time last night as she revealed the best offer she could find was now 10.5 percent - a rise of six percent in a week.

The audience member was responding to a question on mortgages on the BBC programme, presented by Fiona Bruce, and told the panel her previous mortgage offer of 4.5 percent had been withdrawn.

First time buyers are struggling to afford mortgages as lenders withdraw offers in the wake of the government's mini budget, as at least 1,600 products have been withdrawn from the market since last week. 

It comes in a turbulent week for UK markets after the pound plunged to 1.03 against the dollar on Monday.

The buyer, Rabia, said: 'I want to know what the plan is for mortgages.

'I was told my initial interest rate would be 4.5 percent. I was told today that the lender has pulled that offer and now the best offer I can get is about 10.5 percent.

'I'm being told, you need to immediately look at putting your application through because if you don't, the lenders may even pull these offers.

'As a first time buyer I don't think I can now afford to get a mortgage.'

On another tense day in the cost-of-living crisis: 

Her comments were met with audible gasps from the rest of the audience as Fiona Bruce said: 'That's an extraordinary jump.'

Rabia said: 'I was given an initial rate about two weeks ago. 

'We're in the process of getting all the documentation together, making sure everything is correct, ID and all of those things.

'Today I was told the lenders are pulling those offers, those offers are no longer there.'

She added: 'As a first time buyer, you can imagine, you just can't do it. From 4.5 percent to 10.5 percent is a drastic increase.'

Responding to Rabia, government minister Paul Scully said: 'A representative from the UK Finance who represents lenders was speaking just yesterday and was saying there are still more mortgage products now than there were 10 years ago, despite the reduction, so there's still money around.

'But you're right. What you're finding at the moment... about the constraints. 

'If you go back two and a half years to the beginning of covid, the first few weeks of lockdown, lots of businesses were scrambling around with furlough... those first few weeks were really, really, difficult.'

When Ms Bruce interjected to point out 'that was caused by a pandemic', Mr Scully said: 'It's the uncertainty. We talked a lot earlier on about how the markets are trying to get through this and work out what's happening. 

'The certainty we want to give is first of all by communicating far better.'

But Labour MP and shadow Education Minister Bridget Phillipson told him: 'The answer is not to tell Rabia she's basically wrong.' 

The minister at the Department for Levelling Up, Housing and Communities responded: 'I'm trying to make sure that we settle down the lending market so that she can get a better deal. 

'I can't go into her individual circumstances clearly.'

Rabia said: 'I know I'm not getting a better deal. 

'In terms of more offers being valid, I was given four different offers with four different interest rates, none of them are now available.'

She added the mini budget had had a 'big impact' on her life.

The exchange came after a turbulent week for UK markets which has seen lenders withdraw mortgage products and the Bank of England take emergency measures to stabilise the economy amid fears over pension products going bust.