View more on these topics

Secured lenders included in Mortgage Support Scheme

The government has extended its Homeowner Mortgage Support Scheme to include secured loan lenders.

The government says the scheme will cover families at risk of repossession because of additional loans secured on their home.

The Finance and Leasing Association says it sees this as a clear sign that secured lenders will be included in its plans.

The inclusion means that secured lenders may have to echo what first-charge mortgage lenders have signed up to and defer payments and repossession for up to two years.

Buy-to-let properties will not be included in the scheme and for borrowers to qualify for the two-year holiday they must seek financial advice from a party other than their lender to determine their eligibility for the scheme.

Borrowers will also need to prove their income loss will not be permanent.

Fiona Hoyle, head of consumer finance at the FLA, which represents 80% of all secured loan lenders, says: “One of the major challenges facing secured loan lenders is making sure they are involved in government initiatives such as the Homeowner Mortgage Support Scheme.”


Who said negative interest rates were impossible?

Bloomberg is reporting that yesterday the US Treasury sold $27bn of 3-month Treasury Bills at a discount rate of 0.005%, the lowest since the first auction in 1929, and today sold $30bn of 4-week bills at 0%, again the lowest rate ever since the first sale of 4-week bills in 2001.

Abbey offset conditions concern customers

The BBC has today been reporting about Abbey withdrawing borrowing facilities from some customers with an offset mortgage, which Abbey call a flexible mortgage.

Base rate will be 1% next year, says Mform has called the Bank of England’s 1% rate cut to 2% a temporary staging post on the way to a record low base rate of 1% in 2009.

RBS and Rock offer six-month grace period

RBS and Northern Rock have committed to a six-month grace period for borrowers facing repossession, but the latter says its foreclosures usually take 15 months anyway.


News and expert analysis straight to your inbox

Sign up