[Jack_B]

The Homeowners Mortgage Support Scheme (HMSS), announced in December 2008, has finally begun. The scheme is aimed at supporting those who are struggling with their mortgages and will allow borrowers to defer up to 70% of mortgage interest payments if they lose a portion of their income. Lenders who support the scheme will have the option of government support in the way of a guarantee in some circumstances against part of the risk.

To qualify, applicants need to have savings of less than £16,000, a mortgage of less than £400,000 and still have some income and the ability to pay at least 30% of their interest payments.

Housing Minister Margaret Beckett explains the scheme is an offer of temporary help for hard-pressed homeowners, stating:

"the idea of this is to try and help people who haven't lost everything… but who nevertheless are having difficulties"

"Maybe one of them has lost their job but not both, maybe it's just that they've lost their overtime, but one way or another... they are struggling with the mortgage level payments that they could meet before,"

The scheme is being supported by several of the main mortgage lenders, while others have set up similar comparable schemes.

The Council of Mortgage Lenders (CML) says it welcomes the scheme, but that it is simply one means to an end, and stresses the importance of lenders working with their borrowers during these tough times.