Scottish Building Society makes repossession pledge as part of support
The Scottish Building Society has pledged a 12-month hiatus on repossessions after unveiling an emergency support package for customers in financial difficulty due to the Covid-19 crisis.
As well as banning repossessions, the society is extending the current three-month mortgage break to six months to support its hardest-hit customers. It is also “encouraging” landlords to help those struggling to pay rent, by offering mortgage holidays if they pass on the benefit to tenants.
Paul Denton, chief executive of the Scottish Building Society, which was founded in 1848, said: “Lockdown may be easing but financial uncertainty still remains for some.
Understandably, people are concerned about their families, their health and their jobs.
“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.
“We are also making a commitment that no-one in mortgage arrears is at risk of losing their home over the next year, as long as they work with us to get their finances back on track. This will take us to at least June 2021.”
The society, which has some 33,000 members and branches in Edinburgh, Glasgow, Inverness, Troon and Galashiels, said its package of support went further than the Financial Conduct Authority’s new rules for mortgage lenders.
Denton added: “Our customers are at the heart of our business – in good times and in bad. We hope our measures will give those worst affected the platform to rebuild their finances.”