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mortgage support for struggling homeowners
April 21, 2009
The Homeowners Mortgage Support scheme (HMS), which allows struggling homeowners to delay mortgage interest rate payments for up to two years, came in to effect today.
The aim is to prevent unnecessary repossessions as a result of a sudden, but temporary, loss of income. Major high street lenders that will offer the scheme include Lloyds Banking Group, Northern Rock, Royal Bank of Scotland and Bradford & Bingley, as well as the National Australia Bank Group, parent of Clydesdale and Yorkshire Bank. Four other high street lenders - Barclays, HSBC, Nationwide, and Santander - have confirmed they will offer borrowers similar alternatives to the HMS.
But not everyone will qualify for the scheme. Borrowers must have bought their home before December 1 2008, be an owner-occupier, have an outstanding mortgage of less than £400,000 and savings of less than £16,000. They should also have a regular household income and be able to make a minimum contribution of 30 per cent of the total interest payment. Homeowners who want to know more should talk to their lender.