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MORTGAGE SUPPORT SCHEME: Q&A
WHAT IS THE HOMEOWNER MORTGAGE SUPPORT SCHEME (HMS)?
This is a new government scheme designed to offer “breathing space” for home owners who are struggling to pay their mortgage.
This will enable eligible borrowers who suffer a temporary loss of income to cut their mortgage interest payments for up to two years to help them get back on track with their finances.
This new support will be available throughout the UK and builds on a range of measures the Government has already put in place to ensure that repossession is always a last resort.
WHO DO I CONTACT?
Borrowers who are interested in applying for HMS, or finding out about comparable arrangements should contact their lender in their first instance to check their eligibility.
DOES THIS MEAN THAT BORROWERS AUTOMATICALLY QUALIFY FOR A INTEREST ONLY MORTGAGE?
Sue Anderson, spokesman for the Council of Mortgage Lenders said: “No, not all lenders will automatically offer interest-only mortgages. However, many lenders will factor in your qualification for the HMS scheme into their decision and if they feel you will benefit from the scheme, this will be taken into consideration.”
She said: “But remember, that this is a damage limitation exercise for lenders, and they will want to do as much as possible to protect themselves. So, it can’t hurt to ask your lender.”
WHEN CAN I APPLY?
You can contact their lenders from April, 21, 2009.
WHICH LENDERS ARE OFFERING HMS?
More than 80pc of the mortgage market will now be providing enhanced support to their customers. Lenders offering HMS will have the security of a Government guarantee if the borrower defaults.
The following major high street lenders will offer their customers HMS: the Royal Bank of Scotland (which includes NatWest and Ulster Bank), Lloyds Bank Group (which includes Halifax and Bank of Scotland), Bradford and Bingley, Northern Rock, Cumberland Building Society, and the National Australia Bank Group (which includes Clydesdale and Yorkshire Bank).
A number of other banks, building societies and specialist lenders have also confirmed today that they will offer their customers HMS as soon as possible. These are Bank of Ireland (which includes Bristol and West), GMAC, GE Money, Kensington Mortgages, the Post Office and Standard Life Bank.
WHAT ABOUT THE OTHER LENDERS?
Four lenders have all confirmed today they will offer comparable arrangements to HMS to their customers, while opting not to take up the Government guarantee. These included HSBC, Nationwide and Santander (including Abbey and Alliance and Leicester), Barclays (including First Plus), Nationwide and Santander (including Abbey and Alliance and Leicester).
HOW DO I QUALIFY?
To be eligible for the HMS scheme, home owners must have bought their home before December 1, 2008, be an owner-occupier, have an outstanding mortgage of less than £400,000 and savings of less than £16,000.
Applicants will still need to have some income and be able to repay at least 30pc of their interest payments.
I OWN A SECOND HOME, CAN I APPLY FOR HELP ON PAYMENTS FOR ONE OR BOTH?
No, you do not qualify if you own a second home, including a home abroad.
HOW LONG WILL THE SCHEME RUN?
The HMS will run for two years subject to review and will be open for new entrants over that period.
THE GOVERNMENT HAS FINALLY RELEASED DETAILS OF ITS MORTGAGE SUPPORT SCHEME THAT AIMS TO HELP HOME OWNERS IN FINANCIAL DIFFICULTY.
ПРАВИТЕЛЬСТВО ОПУБЛИКОВАЛО ПОДРОБНУЮ ИНФОРМАЦИЮ О СВОЕЙ ПРОГРАММЕ ПО ПОДДЕРЖКЕ ИПОТЕЧНЫХ ЗАЕМЩИКОВ, НАПРАВЛЕННОЙ НА ОКАЗАНИЕ ПОМОЩИ ДОМОВЛАДЕЛЬЦАМ, НАХОДЯЩИМСЯ В ФИНАНСОВОМ ЗАТРУДНЕНИИ.