Royal Bank of Scotland announced today that it would give struggling homeowners at least six months before launching repossession action.

The NatWest parent said it was doubling the three-month breathing space currently offered to borrowers who fall behind with mortgage repayments.

News of the move comes days after the Government bought 58% of the bank's shares for £15 billion - effectively bringing it under state control.

Stephen Hester, chief executive of the Royal Bank of Scotland, wrote in the Financial Times today that the bank was "conscious that many people face anxiety" about repayments in the tough economic climate.

He said: "In our UK residential mortgage lending, and as a banker to small businesses, we are determined to serve customers well in the difficult times ahead and have commitments to Government that we intend to meet in letter and spirit."

It is expected that other banks may also follow suit as the Government calls for greater help from banks for cash-strapped borrowers and businesses.

MPs are also reportedly working on plans for statutory codes of practice in the banking industry, which could replace the current voluntary system.

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