UK's Hunt: Agreed measures with banks to ease mortgage payments strain

British finance minister Jeremy Hunt said he had agreed new measures with bank lenders on Friday to help ease the pressure on mortgage holders of raising interest rates.

"We agreed some very important things for people who are worried about their rates going up," Hunt told reporters after the meeting with banks.

The measures include allowing people who reduce their payments such as by extending the period of their mortgage or moving to interest-only, to go back to their original package within six months with no impact on their credit rating.