Respite For Struggling Home Owners

The Royal Bank of Scotland has promised struggling home owners a little bit more breathing space with their mortgage repayments in the wake of the banking crisis. Natwest which is also owned by the Royal Bank of Scotland will also soften their demands on people in arrears with their mortgages. The banks have decided to wait until home owners reach six months in arrears with their repayments before beginning repossession proceedings. This is double the time that was initially decided by the government, and is in a bid to help people who have been struggling with their debts.

The Royal Bank of Scotland has said that the new guarantee will apply for all of their customers, which is approximately 7% of the United Kingdom’s mortgage market. The guarantee will stay in place until at least the end of next year, and will give struggling home owners the extra time they may need. The bank has said that they wish to avoid repossessions if possible, and will do what they can to help people in the midst of the current turmoil.