Scottish Building Society reveals mortgage support deal

An emergency support package for customers in financial difficulty due to COVID-19 has been announced by the Scottish Building Society.

It includes a pledge that no one will be at risk of losing their home over the next 12 months, until June 2021. It extends the ban imposed by the Financial Conduct Authority, which runs until 31 October this year.

In addition the Society, which claims to be the world's oldest mutual, is extending the current option of a three-month break in mortgage payments to six months, and is encouraging landlords to help those struggling to pay rent, by offering mortgage holidays if they pass on the benefit to tenants.

However it is asking borrowers to work with it to "get their finances back on track", and advises that a payment break may not be in borrowers' best interests. Loan interest continues to build up even where borrowers take a payment break.

Chief executive Paul Denton commented: "We want to offer reassurance to customers worried about keeping a roof over their heads that we are here to support them.

"Some are nearing the end of their three-month mortgage holiday, and while many will be able to return to making repayments, some members may wish to extend their mortgage holiday for another three months until 31 October.  

"There will be cases where a payment break is not in their best interests so we are working with each customer to work out a solution that best suits their personal financial circumstances."

He added: "For families in rental accommodation facing challenges, we are offering landlords a mortgage break on the property providing that the benefits are being passed on to those tenants."