Morning:
6°c
Brown defends mortgage break scheme
5 Dec 2008- Tributes paid to Whitney Houston
- Andrew Lansley must go, says Hughes
- Hunt warns over racism in football
- Athens riots as cuts vote looms
- Tom Jones kicks off Baftas bash
- Arabs call for UN force in Syria
- Drivers warned over icy conditions
- Fuel removal operations under way
- Jet diverted after cockpit attack
- Jagger and Macca grace pop charts
Prime Minister Gordon Brown said the Government's plan to give struggling homeowners a two-year mortgage payment holiday would make people "feel more secure in the downturn".
He said his Government wanted to "do everything we can to reassure people and to help those who are now worried about being repossessed or falling behind with their payments".
The Government also defended itself against opposition criticism that it failed to say how many people will be helped by the Homeowner Mortgage Support Scheme.
A spokesman for the Department for Communities and Local Government said: "We are not setting a limit or target for the number of households that can be helped. This is a consumer led initiative."
Mr Brown and Housing Minister Margaret Beckett have visited staff at a Citizens Advice Bureau office in Pimlico, central London, to talk with advisers who have faced queues of people worried about their finances.
Speaking shortly after the announcement that the Bank of England decided to cut interest rates once more, Mr Brown said: "I welcome the fact that interest rates have come down. Now that they have come down and petrol has come down and we are hoping that gas and electricity will come down shortly, combined with the help we are giving people I think it will help homeowners to feel more secure."
He denied reports that banks were taken by surprise by the announcement of the scheme, saying: "The eight major lenders that are responsible for more than 70% of the mortgage market are fully behind the plans. We are now working on getting the remaining 30% signed up."
Under the scheme, homeowners will be able to defer a proportion of the interest payments on their home loans for up to two years.
It is aimed at those who do not qualify for other Government help and lose their income either through redundancy or a reduction in their hours.
It will cover mortgages up to £400,000 but only those with less than £16,000 worth of savings will be eligible. The deferred payments will be added to their outstanding mortgage debt, which the borrower will pay off when their finances improve.
Reader views (3)
I welcome the help from the goverment but does this scheme include the self employed as i am married with two children and another child being born in 10 weeks i am about to miss my 4th payment on my morgage and my 4th payment on a secured loan i am a carpenter by trade and i have had no offers of work for 3 months now,i have used all my savings and at my witts end now with many sleepless nights could anyone advise me on what to do as a 2 year payment holiday on my morgage would help a lot
- Jez Young, isle of sheppey kent england, 09/01/2009 13:57
Report abuse
There is nothing much new here. people who have less than £16,000 of savings and have a right to reside here would be able to claim help with morgage interest upto £100,000 when claiming JSA or Income Support.
what happens after the two years are up is, you end up with a bigger mortgage which you may not be able to afford and pottential negative equity ans still lose your home
- John, London, 04/12/2008 19:33
Report abuse
Well done Gordon. Now threaten to nationalise the banks who deliberately evade their responsibilities to their borrowers and to the country as a whole
- Keith Price, Luton, England, 04/12/2008 17:15
Report abuse
