Here is a bit of good news for the struggling home owners facing repossession. Royal Bank of Scotland (RBS) group won’t be harsh as they might have been in the past.
Bank’s chief executive Simon Hester has announced in Financial Times this morning that if their customers are unable to re-pay their mortgages, they will be given six months before their homes are repossessed.
This surprising announcement came just days after the government (in other words the tax payer) owned 57.5% of the bank.
Full credit to RBS (which also owns NatWest Bank), they have gone one step further from government’s guidelines. Govt has asked banks to wait at least 3 months before moving to repossess a house.
In a nutshell, from today (1 December 2008), RBS and NatWest customers will be given the six month moratorium before repossession proceedings begin.
Even if the base rates are down, some home owners are still struggling in meeting their mortgage payments, or trying to stop repossession of their family homes. This announcement will certainly bring cheers to many faces. And who knows – other banks may follow the suit too.
Let’s hope so!
Filed under: Stop Repossesion
