British bank 'to delay respossessions for six months'

Borrowers who fail to keep up with mortgage repayments will be given a six-month breathing space by the Royal Bank of Scotland (RBS), according to reports.

RBS, which owns NatWest and Ulster Bank, is expected to announce today it will not repossess the properties of customers who fall behind on payments for six months from the date they first admit that they have a problem.

The announcement comes days after the British government bought 58 per cent of the bank’s shares for £15bn (€18.12bn) – effectively bringing it under state control.

RBS is estimated to have as much as 17 to 18 per cent of the mortgage market and millions of home-loan customers.

A spokeswoman for RBS declined to comment on the reports.