UK Mortgage Holders to Receive 12-Month Grace Period Before Repossession Proceedings

Chancellor Jeremy Hunt met with leaders of several financial institutions, including Lloyds, NatWest, Barclays, and Virgin Money, to agree on the measure.

People struggling with mortgage payments can now change the length of their repayment term or go on to interest-only plans without affecting their credit rating.

However, there is no support for people who rent, and Labour warns that around two million homeowners could miss out on support if the plan is not made mandatory for all banks.

The chancellor's plan may mitigate against chaos but will not prevent pain, as there will likely still be many wanting more from both the banks and the government.

The article discusses the mortgage crisis in the UK and the measures being taken to address it.

The Housing Secretary has announced a five-point plan to help struggling mortgage holders, which includes measures such as allowing borrowers to switch to interest-only payments and lengthening the term of their mortgage.

However, Sir Keir Starmer, the Labour leader, has criticized the government's response as lacking clarity and certainty.

He has called for stronger action, including making the measures mandatory and introducing a moratorium on repossessions.

The banking industry has also offered its support for the measures, with HSBC's chief executive stating that it is important for customers to feel comfortable contacting their lender for help.