Katy Clark MP has welcomed the new Homeowners Mortgage Support scheme. The scheme will enable eligible borrowers who suffer a temporary loss of income to cut their mortgage interest payments for up to two years to help them get back on track with their finances.

Most major high street banks will be offering the scheme to its customers and many building societies and specialist lenders such as the Post Office and Standard Life bank have also confirmed they will offer the scheme.

As part of the scheme borrowers will receive independent financial advice to enable them to make the right the decisions for their circumstances.

In England the scheme also includes a pre-court action protocol that requires lenders to prove that they have exhausted all options before seeking repossession. However, as this matter is devolved this protection will not apply in Scotland leaving Scottish families more vulnerable to repossession. The local MP has urged the SNP government to also act as Scottish families will have less protection than those in England.

Katy said, “This scheme will give homeowners real help and will make repossessions a last resort. Many people are worried about how they will pay their mortgage that is why the Labour Government continues to give real support to those suffering from the economic downturn.”

“However, the pre-court protocols announced will not apply to Scotland as the matter is devolved. This means that people in Scotland will have less protection. It is time that the SNP give Scottish families the same protection to prevent them being thrown onto the street.”