The Homeowner Mortgage Support Scheme
Announced on December 3rd, the Homeowner Mortgage Support Scheme has been introduced by the government to provide homeowners with more assurances that they will be able to remain in their homes if they experience a temporary fall in income.
The scheme allows lenders to lower a borrower’s current monthly mortgage payments, with the deferred payments added to the principal, and paid when the borrower’s financial circumstances have improved. If the borrower defaults, the Government will guarantee the lender against a proportion of any loss incurred on the deferred interest payments.
This is a voluntary plan however there are qualifying factors including:
- the loss of income is not permanent
- the loss of income prevents the borrower from paying the monthly mortgage payment
- have taken out a mortgage of up to £400K
- have savings below £16,000
- the borrower must be the owner - occupier
- able to remain paying a certain monthly amount on an ongoing basis
The scheme is initially open for 2 years pending a review.
To learn more, visit the HM Treasury
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