Homeowners Mortgage Support scheme

The government has launched a Homeowners Mortgage Support scheme (HMS). This scheme enables eligible borrowers to defer a proportion of their interest payments for up to two years, with the government underwriting a proportion of the lender’s ultimate risk of loss.

The implementation of the new government measure is designed to reinforce lenders’ policies of forbearance for borrowers facing temporary and resolvable mortgage repayment problems, to minimise repossessions.

Repossession is a last resort. Lenders already show significant forbearance to borrowers facing temporary difficulties, to enable them to keep their homes where this is possible. This core principle is already underpinned by regulatory rules and industry guidance. HMS is a helpful additional tool and the scheme is aimed at borrowers who expect to be able to resolve their difficulties and resume full mortgage payments within a year or two.

Some lenders have confirmed their participation in the home-owner mortgage support scheme (HMS). Other lenders have concluded that, while they support the principle of reasonable forbearance, they would prefer to help their borrowers outside the scheme and without calling on government financial support. It is important that if you are having difficulty paying your mortgage, you talk to your lender.