Mortgage lenders will implement a 12 month waiting time before any repossessions against those who cannot afford the cost of their homes.
The announcement followed Chancellor Jeremy Hunt meeting with banking bosses on Friday to discuss ways to help struggling households.
The move is one of a raft of new measures to help households deal with rising mortgage rates.
Customers will be able to speak to their bank about mortgage support without it impacting their credit score and households will be able to change to an interest only mortgage or extend the term and then go back to their original deal within six months
Interviewed on Sky News Hunt said “We know the pressure that families are feeling.”
adding that the “government will do what it takes” to tackle high inflation.
“There are two groups of people that we’re particularly worried about.
“The first are people who are at real risk of losing their homes because they fall behind in their mortgage payments and And the second are people who are having to change their mortgage because their fixed rate comes to an end, and they’re worried about the impact on their family finances have higher mortgage rates.”
