The bit below is being described as 'help with redundancy'. Does anyone have any details about whether it will apply to people who go onto means tested benefits? If so then there will be some complex better off issues comparing SMI and deferred interest present values.
"The Prime Minister Gordon Brown has unveiled a 2-year deferment of mortgage interest payments for hard working borrowers who experience a loss of income.
Speaking in the House of Commons this afternoon, Brown unveiled 3 additional forms of protection for cash strapped home owners.
The deferment of mortgage interest payments for 2 years is rumoured to apply to properties worth a maximum of £400,000.
The eight largest UK lenders have so far signed up to the plan, but not the sub-prime lenders who are often quickest to repossess when arrears mount up.
In addition to an existing agreement that all lenders will not repossess for the first three months of arrears, 3 lenders have also now agreed not to repossess for 6 months.
Along with Royal Bank of Scotland, government owned lenders Northern Rock and Bradford & Bingley have also agreed to give struggling borrowers a stay of execution."
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