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Govt widens help for borrowers facing repossession
The government has extended its assistance for borrowers struggling to meet their mortgage repayments by bring forward the implementation of changes to the Support for Mortgage Interest benefit scheme.
Under the changes, claimants now only have to wait 13 weeks to qualify for assistance, down from the present term of 39 weeks.
The government has also doubled the size of home loans covered by the scheme, extending the maximum loan size to £200,000.
The Association of Mortgage Intermediaries (AMI) welcomed the changes, which are aimed at helping homeowners facing repossession.
Robert Sinclair, director of AMI, said: "Government action to support homeowners in financial difficulties who may face the prospect of repossession is to be welcomed.
"This will provide support to a small but important group of people who are vulnerable following job losses, in the current economic climate."
Sinclair added: "Homeowners should take action as soon as they think they may have trouble meeting mortgage repayments.
"They should either contact the lender direct or the mortgage intermediary they used to arrange the deal."
Meanwhile, eight lenders have so far joined a separate scheme, announced at the end of last year, allowing mortgage holders to defer part of their interest payments for up to two years.