Rics responds to government repossession scheme

Date:Thursday 4th December 2008
Author: Max Freedman

A new government plan to help mortgage holders in danger of repossession has been welcomed by the Royal Institution of Chartered Surveyors (Rics).

Under the Homeowner Mortgage Support Scheme, households that suffer substantial income loss due to the current economic decline will be able to put off some of the interest payments on their mortgages for as long as two years, with the government guaranteeing the payment for banks who participate.

Rics described this move as "absolutely vital".

The Chancellor said that the scheme was "a real help" for mortgage holders who were in danger of losing their homes even though they were not at fault.

Housing minister Margaret Beckett urged all lenders to join the scheme "as part of their efforts to ensure that repossession is always an absolute last resort".

According to Rics, limiting "distressed selling" would stop so many new properties being put on the market, which would also be helpful.

The eight biggest banks have already expressed their commitment to the scheme.