Gordon Brown has announced plans to protect UK homeowners from repossesion.
People struggling in the downturn will be able to defer a proportion of their mortgage interest payments for up to two years.

Mr Brown told the Commons that eight of the UK's major lenders had signed up to the scheme, which would be covered by a Government guarantee.

The announcement will mean more affordable monthly payments for households facing difficult times.

The Prime Minister also said Government-owned lenders Northern Rock and Bradford and Bingley had joined Lloyds TSB in agreeing that repossession proceedings would not begin until households were six months behind on their payments.

He urged other "responsible banks" to follow their lead.

Announcing the new measure on interest payments, Mr Brown said: "hard-working households that experience a redundancy or severe loss of income as a result of the downturn will be able to defer a proportion of their interest payments for up to two years as they get their family finances back on track."

Mr Brown said the measure was in addition to protection for the unemployed who can claim help to meet payments after 13 weeks.

"This measure will extend protection for those in work as well as those out of work and be available at a higher level of income."

Lenders who have already signed up to the scheme include HBOS, Nationwide, Abbey, Lloyds TSB, Northern Rock, Barclays and HSBC.

The lenders are responsible for 70% of the home loans held in the UK and further details of the scheme will be announced in the next few days, Mr Brown said.

"The result will be more affordable monthly payments for homeowners who are needing a bridge through difficult times."