Brown offers "mortgage holidays"

04/12/2008

A two-year "mortgage holiday" for some struggling UK homeowners is to be offered from next January, the government has announced.

Speaking yesterday, prime minister Gordon Brown said that the households would be given a break from paying some of the interest on their home loan under the Homeowner Mortgage Support Scheme.
Many details of the plan are yet to be worked out, however.

"Hard-working households that experience a redundancy or severe loss of income as a result of the downturn will be able to defer a proportion of their interest payments for up to two years as they get their family finances back on track," Mr Brown said.

News of the mortgage holiday plan comes as new figures suggest that repossessions are to increase markedly next year.

According to interim figures given by the Council of Mortgage Lenders (CML) to ministers, 75,000 will lose their home next year.

This is well up from the CML's prediction for 2008 of 45,000.

Tags; Budgeting Advice, Young Family Finances,

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