3 December 2008
The Government has announced plans to help families struggling to keep up with their mortgage payments stay in their homes.
Under the scheme households that have temporarily lost their income will be able to defer mortgage interest payments for up to two years.
A total of eight lenders have signed up to the scheme, which was unveiled by Gordon Brown during the debate on the Queen's speech.
Lenders have told Sky News they broadly welcome the announcement - but admitted they had yet to see the details of the plan.
It is believed they were first informed of the repossession relief scheme on Tuesday afternoon.
Nationwide said: "While we broadly support this initiative we are still waiting for more details from the Government before we can make any further comment."
The initiative will cover mortgages worth up to £400,000, with the cost being borne by the Government.
The Prime Minister told MPs: "I want to offer families worrying about their mortgages... an additional guarantee of fairness for all homeowners facing difficult economic times."
Earlier state-owned Northern Rock announced it would give customers who fall into arrears six months to right themselves before initiating repossession procedures.
Halifax Bank of Scotland has meanwhile become the latest bank to announce a support package to help small business customers navigate the economic crisis.
The group's Bank of Scotland business banking arm said it would use £250m of European Union funding to lend at discounted rates to its 180,000 small business customers.
HBOS also joined merger partner Lloyds TSB in announcing a range of commitments, including 12-month guarantees on overdraft facilities and pricing.
Lloyds outlined a six-point "charter", with a pledge to pass on in full any further reductions in the base rate of interest.
The banks are under pressure to help customers as they are being bailed out under the Government's part-nationalisation rescue scheme.
Royal Bank of Scotland, which is now majority-owned by the Government, has already promised measures to support small businesses.
RBS has pledged to wait at least six months before setting in motion repossession action for its struggling consumer borrowers - a move now followed by Northern Rock.
Bank of Scotland (BOS) said it would offer lending at up to 0.8% off standard rates with help from the £250m funding sought from the European Investment Bank (EIB).
The EIB, which is making billions of pounds available in capital for small businesses in the EU, is currently finalising the terms of the funding, according to BOS.
Edinburgh-based BOS added it would allow small businesses to benefit "immediately" from any cut in interest rates and will ensure overdraft rates are linked to base rate and not the more expensive Libor interbank rate.
It is also stepping up its advice service for small businesses and a helpline is due for launch early next year.
Source: uk.news.yahoo.com
