News from Welsh Labour

“Green light” to help Welsh homeowners is welcomed by AM

News the EU has given a “green light” for Welsh borrowers to defer interest payments on their mortgages has been welcomed by a Labour Member of the Welsh Assembly.

Wrexham’s AM Lesley Griffiths was commenting following an announcement that the European Commission has approved the UK Homeowners Mortgage Support Scheme, under EC Treaty state aid rules.

The scheme is aimed at reducing the level of home repossessions that are likely to occur as a result of the current economic downturn.

Under the scheme, Welsh homeowners unable to meet their mortgage repayments following a temporary drop of income could be entitled to delay up to 70 percent of interest repayments on their mortgages for a maximum period of two years.

In return, the UK Government will provide the lender with a guarantee on that part of the deferred interest.

The scheme will allow families to temporarily lower their mortgage-related financial burden and avoid the risk of losing their homes. Only those who can prove to have suffered a clear loss of income as a consequence of the crisis will be eligible for the support scheme.

Commenting on the news from Brussels, Lesley Griffiths AM said:

“Many Welsh families with mortgages have been overstretched – through no fault of their own – as a direct result of current global economic problems. Among those worst hit have been households who took out flexible interest loans.

“This ‘green light’ from the EU means that many Welsh families will now be prevented from being forced to leave their homes during the current downturn. That will be welcomed by many households across the country.

“This scheme is unique within Europe and is an innovative and sensible response to making sure Welsh people do not lose their homes.”

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