Financial News

  • 13 February 2014, 13:52

Banks Offer Mortgage Relief For Flood Victims

Banks have announced a range of support for flood victims, as rising waters continue to cause havoc for homeowners.

Santander said it would offer free overdraft extensions and mortgage payment holidays to customers who have been affected by the flooding.

Homeowners' circumstances would be reviewed on a case-by-case basis and may include conversion of mortgage loans to interest-only payments.

Farmers would be offered extensions to current facilities for up to a year and businesses would get at least six months extensions.

Customer overdraft extensions for business and personal accounts would be made without renewal or extension fees being levied.

Taxpayer-owned Royal Bank of Scotland (RBS) group - which also owns NatWest - said it would also help victims.

RBS said it would grant customers a payment holiday and comes on top of its January announcement of a 250m storm business fund.

"Today the bank has announced that RBS and NatWest mortgage customers with flooded homes will be able to apply for a three month mortgage repayment holiday," the bank said.

"In addition, the bank will send specialist business support teams to affected areas in the coming weeks to help (companies) with short-term financial problems as they conduct urgent repair work and deal with loss of trading income."

Lloyds, which is partially owned by the taxpayer, said it would set up a 250m fund to provide fee-free lending across the retail and business spectra.

Nationwide also said it would step up efforts to help families, including temporary overdrafts and alternative security checks as many people no longer had access to their documentation.

HSBC announced a plan to fast-track credit acceptances, along with overdraft and loan extensions.

Customers, including farmers, would be considered for loan repayment holidays of up to three months and reduced fees on loans.

:: Watch Sky News live on television, on Sky channel 501, Virgin Media channel 602, Freeview channel 82 and Freesat channel 202.

:: Sky News has a special programme dedicated to the floods crisis every night this week at 7pm.

:: You can also watch Storm Night Special this Thursday at 8pm on Sky 1 (Sky channel 106).

:: Email your photos and videos of the floods to news@sky.com.

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