The changes cut to 13 weeks from 39 the amount of time a claimant has to wait until they qualify for the benefit. The Government is also doubling to £200,000 the size of home loan covered by the scheme - it was previously announced this would rise to £175,000.
Commenting Robert Sinclair, AMI Director, said: "Government action to support homeowners in financial difficulties who may face the prospect of repossession is to be welcomed. This will provide support to a small but important group of people who are vulnerable following job losses, in the current economic climate.
"Homeowners should take action as soon as they think they may have trouble meeting mortgage repayments. They should either contact the lender direct or the mortgage intermediary they used to arrange the deal. Intermediaries can and do play a vital role in helping consumers to cope in difficult circumstances. Mortgage intermediaries will look at an individual's circumstances and recommend the best course of action.
"2009 is likely to be a tough year for consumers and homeowners in particular. It is right the Government does all it can to support them. AMI will continue to work with Government to ensure the best possible outcome for homeowners."
