A new scheme to help homeowners struggling with mortgage debt management problems has been introduced by the government.
Borrowers who suffer from a temporary drop in income can receive help with home loans under the Homeowner Mortgage Support programme.
It allows such groups to cut repayments for up to two years, with government guarantees being offered to lenders to cover debts if the property owner defaults.
Commenting on the move, housing minister Margaret Beckett remarked that the scheme is a “result of excellent co-operation between the government, lenders and money advice services”.
She added that it will offer those having difficulty with debt “a bit more time to get themselves back on their feet”.
The initiative was welcomed by Citizens Advice, with spokesperson Teresa Perchard urging people to contact lenders if they experience repayment problems.
She noted that there is now “a lot more help out there” for homeowners in arrears.
By Jamie Price