The Chancellor Alistair Darling has revealed plans to make sure that the Government will help secured loan borrowers in difficulties.

In his pre-Budget report he said: “In September we set up a Mortgage Rescue Scheme, helping vulnerable homeowners facing difficulties stay in their homes. Today I am extending this scheme, so it will also cover those at greater risk as a result of taking out second mortgages.”

This means those who are in difficulty, and have stretched themselves too far as a result of taking out a secured loan will be allowed to take part in the Mortgage Rescue scheme, where the Government buys up the distressed home and then rents it back to the borrower.

Darling also extended the Support for Mortgage Interest scheme, which covers mortgage interest payments for those who have lost their jobs. He said he would increase the upper limit of the scheme, for mortgages up to £200,000, from the present limit of £100,000.

This means if you are made unemployed and have a mortgage as much as £200,000 the Government will help you with the interest payments for your mortgage until you get back on your feet.

“This will help ease worries for homeowners who have lost their jobs as they look for new employment,” said Darling.

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