Support for mortgage interest benefit cut by thousands of pounds

carolt

Have I missed this thread? Can't spot it, but it certainly belongs here. From the right-hand edge of this very page, MSE's own news:

http://www.moneysavingexpert.com/news/mortgages/2010/09/support-for-mortgage-interest-benefit-cut-by-thousands-of-pounds?utm_source=forum&utm_medium=sidebar&utm_campaign=box

"Almost a quarter of a million struggling householders will see mortgage benefit payments dive by a typical £3,700 a year from next month.

The cut to the support for mortgage interest (SMI) scheme will see the standard interest rate used to determine payments – which is the amount it is assumed borrowers pay – drop from 6.08% to 3.63% (see the Mortgage arrears guide)."

carolt

£3700/year - that's a lot of money.

And 250,000 - that's a lot of people.

nearlynew

..... good.

carolt

In terms of repaying the country's deficit, let's just say that 250,000 X £3,700 was too big a number for my calculator to handle.

And that's just for 1 year.

So that's a lot of money saved by all those taxpayers of us who didn't over-extend ourselves to buy a house, whilst forgetting to take out any type of insurance.

C_Mababejive

Why should Government pay mortgages? If you cant pay,you need to negotiate a deal with your lender or put a for sale sign in your garden.

ukcarper

carolt wrote: »

In terms of repaying the country's deficit, let's just say that 250,000 X £3,700 was too big a number for my calculator to handle.

And that's just for 1 year.

So that's a lot of money saved by all those taxpayers of us who didn't over-extend ourselves to buy a house, whilst forgetting to take out any type of insurance.

how often do the insurances actually pay out

Graham_Devon

carolt wrote: »

In terms of repaying the country's deficit, let's just say that 250,000 X £3,700 was too big a number for my calculator to handle.

£925m

Should pay the bill for MP's lunches.

Sorry....£9.25bn I believe. All the 0's made my eyes go funny.

PasturesNew

This mortgage support never used to exist. It was put in place hurriedly to help people out a bit longer. It's now coming to an end for those that have been receiving it for 2 years.... which is a lot of time for them to adjust their lives/get new jobs/sort themselves out or simply plan to downsize.

This is one of a big raft of expensive benefits that simply didn't exist before. So there's no need for an outrage when it comes to an end. It bought people time. For a lot it even paid off capital amounts as it was at a fixed rate.

It's coming to an end. It should. It did its job - gave people more time to adjust/try to get jobs/look at their options.

ukcarper

I believe that you could get your mortgage interest paid in the eighties

Graham_Devon

PasturesNew wrote: »

This mortgage support never used to exist. It was put in place hurriedly to help people out a bit longer. It's now coming to an end for those that have been receiving it for 2 years.... which is a lot of time for them to adjust their lives/get new jobs/sort themselves out or simply plan to downsize.

This is one of a big raft of expensive benefits that simply didn't exist before. So there's no need for an outrage when it comes to an end. It bought people time. For a lot it even paid off capital amounts as it was at a fixed rate.

It's coming to an end. It should. It did its job - gave people more time to adjust/try to get jobs/look at their options.

The two year rule is only for those on jobseekers, I believe?

Many have had it for years and years.

AD9898_2

It's bad enough that savers are being shafted in order to keep the over extended afloat, for the taxpayer to be putting their hand in the their pocket as well is a disgrace.

And to think that a few on here believe that house prices are at affordable level, the two issues I've mentioned above just show how ignorant with vested interest they are.