Lenders covering around 80% of the mortgage market will now be providing enhanced support to their customers who may be facing difficulties at this time. The scheme is voluntary, subject to eligibility criteria and open for two years.
Margaret Ritchie said: “The Homeowners Mortgage Support Scheme is a welcome boost for homeowners in this current economic climate. It will help a homeowner who experiences a temporary fall in income to rearrange their finances for an interim period to prevent them from losing their home. I urge homeowners in financial difficulty to seek independent advice as soon as possible.”
Notes for Editors:
1. Borrowers participating in HMS are able to postpone up to 70% of their monthly payments for up to two years. The money postponed is added on to the remaining balance of the mortgage, to be paid back when the homeowner leaves the scheme. Lenders offering HMS will have the backing of a government financial guarantee that will protect the lender if a customer ultimately defaults on the mortgage.
2. The Mortgage Rescue Scheme for Northern Ireland is a package of government-backed measures intended to address mortgage payment and debt problems, which threaten the ability of home-owners to remain in their homes and thereby help to prevent an increase in the numbers claiming homelessness. The scheme will direct households to take and act on financial advice to help alleviate their debt problems. To date we have been unable to obtain the resources necessary to allow the scheme to operate and will continue to make monitoring round bids to seek funding to allow the scheme to operate.
3. Other initiatives to help those struggling with mortgage payments include:
- Pre-action protocols - these are being considered by the courts requiring lenders to show the actions they have taken before seeking an order for repossession.
- Support for Mortgage Interest – introduced in January this year, this entitles homeowners on Income Support, income-based Jobseeker’s Allowance, or income-related Employment and Support allowance, to support on mortgage interest payments after 13 weeks.
4. For those requiring debt advice we advise that they consult their local Citizens Advice Bureau or Advice NI office. Details can be found in the phone book. Alternatively they may which to contact Housing Rights Service on 9024 5640 who provide specialist debt and housing advice. Although based in Belfast it provides advice throughout Northern Ireland Monday - Friday 9.30am - 5.00pm
5. HMS LENDER POSITIONS
From today, the following major high street lenders will offer their customers HMS:
- Lloyds Bank Group (which includes Halifax and Bank of Scotland),
- Bradford and Bingley
- Northern Rock
- Royal Bank of Scotland (which includes NatWest and Ulster Bank)
- Cumberland Building Society
- 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.
- Bank of Ireland (which includes Bristol and West)
- GMAC
- GE Money
- Kensington Mortgages
- Standard Life Bank
- The Post Office
At the same time, four other high street lenders, have all confirmed today they are offering comparable arrangements to HMS to their customers, while opting not to take up the Government guarantee – these are:
- Barclays (including First Plus)
- HSBC
- Nationwide
- Santander (including Abbey and Alliance and Leicester)
6. For media enquiries please contact the DSD Press Office tel. 028 9082 9079. Out of office hours please contact the Executive Information Service Duty Press Officer on 07699 715 440 and your call will be returned.
