This content applies to Scotland only.

Housing laws vary between Scotland and England. Get advice relating to England

Several new measures have been announced to help people who are struggling to pay their mortgages. This page looks at how these measures affect borrowers in Scotland.

Homeowners Mortgage Support

Under a new scheme, borrowers who are struggling to meet their mortgage payments will be able to defer part of the interest on their loans for up to two years, to give them time to get back on their feet. This scheme will only be available to borrowers who:

• have a mortgage of up to £400,000, and
• are only experiencing temporary financial difficulties, and
• aren't benefiting from any other schemes, and
• have less than £16,000 in savings.

The scheme was launched on 6 April 2009. The page on homeowners mortgage support (HMS) has more information.

Six month delay on repossession

Some banks, including Royal Bank of Scotland, NatWest, Bradford and Bingley and Northern Rock, have agreed to delay taking repossession action for six months, to give borrowers time to sort out their arrears.

However, if you know that your financial situation is not going to improve and you will no longer be able to afford your mortgage in the future, you may be better off selling your home earlier, rather than delaying and building up more arrears. Talk to a debt adviser if you're in this situation, as they should be able to help you work out the best course of action.

Home Owner and Debtor Protection (Scotland) Act 2010

The Home Owner and Debtor Protection (Scotland) Act 2010 came into force in October 2010 and If you are threatened by repossession this Act strengthens your position in three ways;

• To have your home repossessed your lender must now go to court to have the repossession enforced.

• Before your lender can take you to court home they must show that they have considered reasonable alternatives to repossessing your home.

• If your case goes to court you now have the option to be represented in court by a lay representative.

Mortgage to rent and mortgage to shared equity

The Scottish Government also announced the introduction of a new Home Owners Support Fund, which aims to improve the mortgage to rent scheme and launch a new mortgage to shared equity scheme, these changes came into effect on 16 March 2009.

In addition, the limit for financial assistance for civil legal aid has been raised substantially, meaning most people in Scotland will now qualify for assistance.