LONDON (Reuters) - The government will back a scheme to allow households experiencing a temporary loss of income as a result of the downturn to defer interest payments for up to two years, a source familiar with the issue said on Wednesday.

The government will begin discussions with lenders this week and announce further details in the coming days, the source said.

The scheme is designed to supplement existing schemes which allow homeowners who are made redundant to claim help with mortgage payments if they meet certain criteria.

The government has recently stepped up pressure on banks, which have received state funding and guarantees, to do more to help families and small businesses cope with the downturn.

(Reporting by Christina Fincher)