Homeowners who run into financial trouble will be able to make reduced payments under a deal brokered by Chancellor Jeremy Hunt at a summit with bank bosses.
The Treasury said bank chiefs had agreed a series of measures to help struggling customers.
Those who run into difficulty with payments will be offered targeted help, which could include a 'short-term reduction in monthly payments', a temporary switch to interest-only payments or an extension of the mortgage term to reduce monthly costs.
Banks also agreed that households coming to the end of their fixed rates should be offered a new deal without another affordability test, provided they have kept up with their payments.
Daily Mail
