Natwest and the Royal Bank of Scotland (RBS) have agreed to give borrowers six months after they first enter arrears on their mortgages before any action is taken towards repossession.

The move, which will remain as policy until the end of next year at the earliest, comes along with financial advice training for staff. In addition, the bank said that it would make sure borrowers were given help from a group such as Citizens Advice before moves were made towards repossession.

Leslie Morphy, chief executive of Crisis, said: “With 45,000 households predicted by the Council of Mortgage Lenders (CML) to be repossessed by the end of this year, it is critical that banks demonstrate greater understanding and leniency towards struggling mortgage holders. These measures by Natwest and RBS are a welcome first step. The six months grace period will provide a life-line for those facing the prospect of repossession and appears to go further than recent Government proposals. We urge other mortgage lenders to follow this lead and do everything in their power to prevent those in financial difficulties from experiencing the trauma of homelessness.”