Real Help Now to Support Families Staying in their Homes
Nick Brown MP has welcomed the Housing Minister Margaret Beckett’s announcement of Homeowners’ Mortgage Support that from today will provide new support for households across the UK to help them stay in their homes if they suffer a temporary drop in their income.
Homeowners Mortgage Support will from today allow borrowers to reduce their monthly mortgage interest payments to affordable levels for up to two years. This will support households who may have had working hours reduced or overtime cut or perhaps had two incomes and are now relying on one pay packet.
It will make a major difference by giving families more breathing space to come through a difficult period without the threat of repossession.
Lenders offering HMS will have the backing of Government financial guarantee that will protect the deferred payments. At the same time, some lenders have today confirmed that they will offer an equivalent deal to HMS, but without taking up the option of Government financial support.
As a result of today’s news, lenders covering more than 80 per cent of the mortgage market will now be providing enhanced support to their customers who may be facing difficulties at the moment.
Borrowers participating in HMS are able to postpone up to 70% of their monthly payments for up to two years. It is not a payment holiday – the money postponed is added on to the remaining balance of the mortgage, to be paid back when the homeowner leaves the scheme.
Nick Brown MP said: “This is welcome news, this starts from today. It’s real help now, for local people who are trying to hold down a job and mortgage payments through difficult times.”