Mortgage support offered for homeowners

Posted: 22 Apr 2009 12:53:24 GMT

The government unveiled a new scheme to protect homeowners from the threat of repossession yesterday (April 21st).

Housing minister Margaret Beckett claimed that the new deal, the Homeowners Mortgage Support (HMS) scheme, will mean that homeowners facing a loss of income can opt to reduce interest payments on their mortgage.

While such a deal will not cover buyers purchasing a house this year, the support it offers banks could mean that confidence increases and more cash is put into mortgage lending over the next few months, offering more first-time buyers the opportunity to join the property ladder.

Speaking about the scheme Ms Beckett said: "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."

Homeowners choosing instead to downsize to save money may be able to achieve a higher sale price by selling a property online.



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