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URGENT Changes to Morgage Interest Support [merged]

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URGENT Changes to Morgage Interest Support [merged]

edited 30 November -1 at 12:00AM in Benefits & Tax Credits
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[Deleted User][Deleted User]
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Mortgage-free Glee!
edited 30 November -1 at 12:00AM in Benefits & Tax Credits
A reminder for those who are aware and a heads up for those who arent.The June budget made a change in SMI (support for mortgage interest)upto 30/9 it will be paid at a rate of 6.08%(as it has been from january 09).From 1st Oct the rate will be 3.67%(the bank of england averaged mortgage rate).

Anyone with a 100k mortgage will see the help they get REDUCED by £50 PER WEEK.
This new rate will only be reviewed every 3 months and will only change if the bank of england averaged rate increases by more than 0.5%,changes of less than this WILL NOT trigger a change.

Some 225,000 households receive SMI.
«13456727

Replies

  • edited 7 September 2010 at 5:52PM
    dmg24dmg24
    33.9K posts
    edited 7 September 2010 at 5:52PM
    I think MSE should do a newsletter story on this - few people are aware that it is happening. Indeed, last time I spoke to someone in the local SMI Team they were not aware of the change.
    Gone ... or have I?
  • tcr_3tcr_3 Users Awaiting Email Confirmation
    580 posts
    I don't know why your local SMI team weren't aware of the rate change. Benefit bulletins have been issued to staff which tell them about it.

    A more significant problem is coming, too. Some JSA "new mortgage rules" customers are soon to receive a mailshot saying help with their mortgage under the SMI scheme is coming to an end after 104 wks of entitlement. And for some people that means as early as January 2011 when help with their mortgage will stop altogether.

    The government needs to look at the whole issue of JSA Mortgages urgently, otherwise people are going to end up repossessed.
    I no longer contribute to the Benefits & Tax Credits forum.
  • anmarjanmarj Forumite
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    we have not had notice either and I check the bullteins every day.
  • tcr_3tcr_3 Users Awaiting Email Confirmation
    580 posts
    Check tomorrow ;)
    I no longer contribute to the Benefits & Tax Credits forum.
  • dmg24 wrote: »
    I think MSE should do a newsletter story on this - few people are aware that it is happening. Indeed, last time I spoke to someone in the local SMI Team they were not aware of the change.

    doesnt seem to have had much publicity this one,although the stats from the dwp are tbh frightening,im sure there will be people lose their homes
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  • Woodbine wrote: »
    doesnt seem to have had much publicity this one,although the stats from the dwp are tbh frightening,im sure there will be people lose their homes

    I agree - the major problem is the use of the 'average' rate. Firstly, it is not an average for those on benefits, who by virtue of their circumstances are likely to be on a higher rate than the general population. Secondly, for every person who has a rate below the average there will be another whose rate is above the average.

    I had hoped that some kind of discretionary fund would be set up as a result of the change, in the same way as that which is available to those claiming LHA. However given the current govt, I suppose I always knew it was a pipe dream.

    I have limited sympathy for those affected by the change for those on JSA. They have had two years to either find a job or make alternative plans. Maybe they should be issued with periodic reminders to give them a kick into taking some action?
    Gone ... or have I?
  • anmarjanmarj Forumite
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    Tcr wrote: »
    Check tomorrow ;)


    did check, still nothing!
  • anmarjanmarj Forumite
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    okay, letters start going out this week :j - not! (sorry tongue in cheek)
  • dave030445dave030445 Forumite
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    hi just got the letter this morning saying it was going to drop I'm now at a £80 a week short fall on my mortgage interest how am we to pay the money. The mortgage company weren't any help they just said it needs to be paid. I'm on ESA and my wife gets carers allowance for looking after me. How can they do this we have no way of paying this extra money. We are going to loss are house over this so then a disabled man his wife and 3 young children will be homeless is this fair. haven't told the wife yet things are bad enough already
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