Ministers promise £500 million in mortgage assistance

The government is to announce up to £500 million to help struggling homeowners keep their homes. It is expected that the homeowners mortgage support scheme will allow borrowers with mortgages up to £400,000 to take a payment holiday if they suffer an ‘income shock’. It will also allow borrowers to defer payment on up to 70 per cent of their mortgage interest for up to two years, with the government guaranteeing 80 per cent of the deferred payment if the borrowers fail to cover their repayments and lose their homes.