Homeowners Mortgage Support Scheme

With the homeowners mortgage support scheme borrowers who could have their property repossessed due to a huge or temporary cut in their income can choose to defer part of their interest payments for up to two years.

This definitely lowers your monthly mortgage payments but the money is not written off; the deferred payments are added on to the outstanding mortgage balance. Hence, you have to pay it back eventually along with interest.

The homeowner support scheme is only available via certain lenders. However, eight of largest lenders who are reponsible for covering 70% of the mortgage market - HBOS, Nationwide, Abbey, Lloyds TSB, HSBC, Northern Rock, Barclays and RBS have agreed to support the new scheme.

For more information and to check whether or not your lender is still party to this scheme please refer the Directgov website.