A government initiative aimed at stopping repossessions begins today.
The Homeowners Mortgage Support (HMS) scheme has come into effect from today (April 21st).
Under the measure, mortgage holders who suffer a temporary loss of income will be able to reduce their mortgage interest payments for up to two years while they attempt to improve their financial situation. The scheme is available throughout the UK and forms part of the government's wider attempts to reduce repossessions.
Major lenders which are taking part in HMS include the Lloyds Bank Group (including Halifax and Bank of Scotland), Northern Rock and RBS (including NatWest and Ulster Bank), among others. The institutions involved are covered by a government guarantee in the event that the borrower defaults.
Barclays, HSBC, Nationwide and Santander (including Abbey and Alliance and Leicester) have launched similar schemes, without the government assistance.
"Today's news is a result of excellent cooperation between government, lenders, and money advice services," said housing minister Margaret Beckett.
"On top of the range of measures we've already put in place, this new support will help borrowers who just need a bit more time to get themselves back on their feet. The clear message to borrowers is to contact your lender straight away if you're concerned about how to pay the mortgage as often a solution can be found."
