HMS helps people who are having difficulties meeting their mortgage repayments, but are likely to get their finances back on track in the near future.
For example, if you:
If you are accepted for HMS, your lender will delay some of the monthly interest due on your mortgage. This can reduce your payments for up to two years – although the exact length of time you spend on the scheme will depend on your circumstances. The money isn’t written off – you’ll have to pay it back eventually. This is also known as ‘deferring’ your repayments.
Find contact details for specialist money advisers and check if your lender is offering HMS
To be eligible for HMS, you must have had a temporary drop in income and be unable to meet your monthly mortgage payments. You’ll need to switch to an interest-only mortgage, if you haven’t already. Your lender will also ask you to commit to paying as much as you can afford each month.
Your lender may have other conditions that you’ll need to meet. For example, they may say you should only have a small amount of savings. Talk to your lender about whether you qualify for HMS.
Not all mortgage lenders are providing HMS. Follow the link below to check whether yours is offering HMS or equivalent support.
You won’t qualify for HMS if:
For more information about SMI, follow the link below.
If you want to go ahead and your lender accepts you for HMS, you:
Within a year of joining the scheme, you’ll have a review with your lender and an independent adviser. They will look at whether you are still eligible for HMS and if it’s the best option for you.
When you return to making full repayments, you’ll need to agree with your lender how to repay what you owe. This may mean increasing your monthly payments or the length of your mortgage. If your financial situation improves, you can leave the scheme and return to making full repayments at any time.
See ‘Homeowners Mortgage Support – case studies’ for examples of how people in different situations are eligible for HMS and how it can help.
The leaflets below cover general information about the benefits and risks of HMS.
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