From The BBC:
The government has announced an extension of assistance for those struggling with mortgage repayments.
Prime Minister Gordon Brown told the Commons that the government would provide a guarantee, allowing homeowners made redundant to defer payment of some of their mortgage interest payments.
What proportion of these payments can be deferred will be agreed between the borrower and the lender.
The eight largest lenders – HBOS, Nationwide, Abbey, Lloyds TSB, Northern Rock, Barclays, RBS and HSBC, which together provide 70% of mortgages – have agreed to sign up to the scheme.
So what are the new measures?
The Prime Minister said that people made redundant or who face a “significant loss of income” will be allowed to defer a proportion of interest payments for up to two years.
This could help families with one earner who has become redundant, a homeowner who has suffered a significant loss of overtime or people who have had to take a lower-paid job.
The BBC understands that this will…