The scheme, arranged by the Government with the UK’s major mortgage lenders, means borrowers suffering a loss of income can cut their mortgage payments for up to two years to help them restore their finances.
The British Bankers’ Association’s executive director for retail, Eric Leenders, said: “The banks have made a number of strong commitments in recent months to help their customers through the worst of the financial downturn. Responsible homeowners should feel confident that every action is being taken to ensure they can remain in their homes while their finances are restored. Homeowners should remember that repossession is always absolutely the last option for banks: repossession rates by high street banks remain significantly lower than those of other lenders.”
Lloyds Banking Group, the Royal Bank of Scotland Group, Bradford and Bingley and the National Australia Bank Group are all members of the Government scheme, and Barclays, HSBC and Santander are offering comparable arrangements to their customers.