Check this out:
“The Bank of England is today expected to announce another sharp reduction in interest rates to make life easier for struggling homeowners, but the Government scheme goes much further in a bid to insulate people against the threat of repossession.
Under the terms of the new mortgage guarantee plan, households with mortgages of up to £400,000 will be able to defer interest payments for up to two years.
The scheme will be available to those losing their jobs or suffering from a loss of income – for example, if they lose a bonus or overtime payments. Two earner households where one person is made redundant will also benefit.
The Government scheme covers only interest payments on mortgages. People with repayment mortgages – where capital is also paid off each month – will need to switch to interest-only mortgages before taking full advantage of the scheme. Most lenders will allow customers to switch to interest-only deals at any point and this is typically the first step for those struggling with monthly payments.”
Read the whole article here.
Seems like a better idea than our stupid bailout plans. (Did you notice the interesting use of the word “scheme”? Must have a different meaning across the pond.)
