The government published details of the scheme last week and revealed that it has been extended to cover families at risk of repossession because of additional loans secured on their homes.
The Finance and Leasing Association lobbied for the inclusion of secured lenders.
Fiona Hoyle, head of consumer finance at the FLA, which repre-sents around 80% of all secured loan providers, says: “One of the biggest challenges facing second charge lenders is making sure they are involved in government initia-tives such as the Homeowner Mortgage Support Scheme.”
For unemployed borrowers to qualify for the two-year guarantee to underwrite their mortgage interest payments, they must seek financial advice from parties other than lenders to determine their eligibility. Buy-to-let deals will not be included in the scheme.