Gordon Brown has promised “action to help struggling homeowners”, in the debate after the Queen’s Speech.

“Hardworking households that experience a redundancy or significant loss of income as a result of the downturn will be able to defer a proportion of their interest payments for up to two years while they get their family finances back on track,” the prime minister said.

The UK’s eight largest lenders have signed up to the scheme.

There are now warnings as many as 75,000 homeowners will face repossession next year.

It is thought the scheme will cover mortgages up to £400,000 and a full explanation is expected from the Treasury in the coming days.

Those facing repayment problems will be able to restructure their mortgages and defer interest repayments – with the Treasury guaranteeing balances to minimise risk for banks.

Mr Brown said this was in addition to existing measures, such as reducing the waiting time before income support for mortgage interest (ISMI) could be earned.

The Council of Mortgage Lenders (CML) has welcomed the home guarantee scheme, but warned it will not be for all borrowers.

“It is not a charter for ‘won’t pay’ borrowers to avoid their responsibilities, but it will provide welcome reassurance to the vast majority of borrowers that the government and lenders are doing all they can, in partnership, to help those customers who ‘can’t pay’ due to a change in circumstances as we enter a recession,” a CML spokesperson said.

CML director general Michael Coogan said more work was needed for the scheme.

“The government’s recognition that it needs to offer increased support to help keep more people in their homes is welcome, and we will work with ministers to make sure the suggested scheme will help in practice,” he said.

He also called for a widening of ISMI and wider ranging mortgage rescue proposals.

“We await further information on the proposed guarantee, as the devil will be in the detail,” he said.