Brown throws homeowners mortgage lifeline
The Financial Times reported, homeowners facing the threat of repossession were on Wednesday offered a government lifeline in the form of a £1bn scheme that will allow mortgage interest payments to be deferred for up to two years.
Mr Brown’s plan, broadly welcomed by lenders, would help those on “middle incomes” with mortgages of up to £400,000 and with less than £16,000 of savings.
In particular, it would apply to those whose interest payments were not covered through the benefit system, such as dual- income households where one earner loses their job, or where overtime earnings disappear.
Mr Brown has managed to sign up eight banks - HBOS, Nationwide, Abbey, Lloyds TSB, Northern Rock, Barclays, Royal Bank of Scotland and HSBC - representing 70 per cent of the mortgage market. Also, building societies say they are interested in taking part.
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September 2nd, 2010 at 4:08 pm
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September 6th, 2010 at 3:52 pm
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