Mortgage bail-out gets mixed welcome

MPs in Suffolk had mixed views over a government bail-out proposal to help people struggling to pay their mortgage.

MPs in Suffolk had mixed views over a government bail-out proposal to help people struggling to pay their mortgage.

The government was today due to give details about a two-year mortgage holiday underwritten by the taxpayer.

Under the Homeowner Mortgage Support Scheme people who experience a significant temporary loss in their income will be able to defer a proportion of the interest payments on their home loan for up to two years.

These deferred payments will then be added to the people's outstanding mortgage debt, which must be paid off when their finances improve.

Ipswich Labour MP Chris Mole said: “I have already been getting enquiries from people that are concerned about losing their job or having fears about their homes being repossessed and I think this will be helpful.

“All in all the government has done a lot to minimise the disruption.”

Eight lenders, including Halifax Bank of Scotland, Abbey and Nationwide, have already agreed to be part of the scheme.

Tim Yeo, MP for Suffolk South, said: “It [this plan] looks a bit rushed. We are not quite clear about all the details. Broadly speaking it is a good idea for people that lose their job and will be employed again soon to have help.

“That is common sense, but as on previous occasions, we have seen some rather hasty announcements by the government. I'm not sure how much this will help people in Suffolk.”

The plan is it may be up and running in the New Year as the government is set to iron out the details with lenders in the next few days.