NatWest and RBS: Six months' grace for mortgage holders in arrears

Date:Monday 1st December 2008
Author: Rachel Fletcher

NatWest and Royal Bank of Scotland (RBS) have agreed to give borrowers six months after they first enter arrears on their mortgages before any action is taken towards repossession.

The move, which will remain as policy until the end of next year at the earliest, comes along with financial advice training for staff.

In addition, the bank said that it would make sure borrowers were given help from a group such as Citizens Advice before moves were made towards repossession.

Managing director for retail banking, Craig Donaldson, said that repossession was "always a last resort", adding that it was hoped that borrowers were reassured "that we are committed to providing them with enough time, professional support and the assistance they need to resolve their financial difficulties".

In related news, a new two-year tracker mortgage is available from Nationwide.

The product has no minimum for overpayments, although they are capped at £500 per month, with interest calculated daily.