Government launches Homeowners’ Mortgage Support Scheme

Posted under News by Michael

The Homeowners’ Mortgage Support Scheme (HMSS) by the Government has been launched on 21 April. Details of scheme were announced last year.

It is aimed at helping homeowners who are losing part of their income and will allow postponement of up to 70% mortgage interest payments.

Housing Minister Margaret Beckett claimed that the Government is aiming to help people who are unable to pay their mortgages because of economic downturn and are ineligible for re-housing.
Applicants will have to have sufficient income to pay at least 30% of their interest.
Those with mortgage debt lower than £400,000 and savings of less than £16,000 will also qualify for the HMSS.

Lenders who have agreed to participate in the scheme include Bradford & Bingley, Lloyds Banking Group, Clydesdale, Yorkshire Banks, RBS, Northern Bank and Cumberland Building Society.
The Post Office, Bank of Ireland and Standard Life Bank are also expected to sign up, as are sub-prime lenders GE Money, GMAC and Kensington.

However response from Council of Mortgage Lenders (CML) to the scheme backed by the Government’s guarantee seems to be gloomy. According to Michael Coogan, director general CML, the HMSS is an additional helpful tool but CML is not sure that guarantee will be triggered in most of the cases.

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