The Royal Bank of Scotland (RBS) has pledged not to begin home repossession proceedings in the UK for six months after a mortgage customer first falls into arrears.
According to RBS, the reason they are doing this is to ease the pressure on owners who are struggling to pay their mortgages. The pledge extends to customers of both NatWest and RBS.
Brian Hartzer, chief executive of RBS’s British retail arm, 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.”
Recently, the Council of Mortgage Lenders estimated that the number of home repossessions could rise by approximately 15 percent in 2010.
Teresa Perchard, director of policy for Citizens Advice, welcomed RBS’s move and urged more mortgage lenders to make the same pledge.
"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," Ms. Perchard said.