RBS announces six-month wait help for at-risk homeowners

01/12/2008

New protection from repossession has been introduced by RBS, the bank which also owns NatWest.

According to the firm, a period of six months has now been guaranteed for homeowners who fall behind on their mortgage repayments, before the property in question is repossessed.

The move comes after it was announced that the government would take a 58 per cent stake in RBS, as part of its £37 billion financial rescue plan.

Writing in the Financial Times, the bank's chief executive, Stephen Hester, commented: "The government has called on banks to wait at least three months before moving to repossess the house of a customer who cannot make mortgage payments.

"Today, RBS Group is announcing that we can be even more helpful."
Speaking to the BBC, Jonathan Charley at consultancy EDS added: "At a time when house prices are falling, banks don't really want to do repossessions because all they end up with is no money coming in from the mortgage loan and they end up with a stock of houses, which they probably can't sell."

Tags; Housing Debt and Bills, Young Family Finances, Credit Card Lifestyle,

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