The banks commit not to commence repossession proceedings for a full six months after a customer first falls into arrears, easing the pressure on those homeowners struggling to meet their mortgage payments.
Brian Hartzer, CEO of UK Retail at RBS, said: “We will succeed as a business by helping our customers through good times and bad and helping our customers when times are tight and anxiety is high. This pledge today gives people the comfort to know that if they have a mortgage with RBS or NatWest and are facing financial difficulties, they have more time to work with us to find a solution without putting their home at risk.
“The last thing we want to do is repossess a home; repossession is always a last resort and one we look to avoid wherever possible. If customers are worried about making ends meet, it is critical they talk to the bank and our staff will do their best to work through the problems they face. We are open for business and here to help.”
Teresa Perchard of Citizens Advice, commented: “Giving customers who fall into arrears this important breathing space, perhaps because they have lost all or part of their income, gives peace of mind in the short term and a sensible period of time for people to get advice and plan what they will do rather than panic.
“We would urge all mortgage lenders to follow the example set by the RBS here and either renew their existing commitments to supporting customers in arrears, or for those who have not yet adopted best practice, to make a commitment now to do so.”
