Support for mortgage interest benefit cut by thousands of pounds

chucky

StevieJ wrote: »

Let me just get this correct, are you saying that everytime some mortgage holder becomes unemployed and needs state help they should sell their house?

i really wish this house price crash that is apparently around the corner would hurry up...

those type of posts are getting more and more desperate each day...

Graham_Devon

StevieJ wrote: »

Let me just get this correct, are you saying that everytime some mortgage holder becomes unemployed and needs state help they should sell their house?

Nope. Where did you read that? I am saying, exactly what I am writing.

I've said over and over. 2 years max on SMI. After that, enough is enough.

StevieJ

Graham_Devon wrote: »

They pay a fixed amount. This fixed amount may pay only a percentage of the interest, or may pay all of the interest and some of the capital.

This has been said over and over, so not sure why people keep saying they pay the interest only.

Maybe it is because of this BTW over 50% won't even get the interest covered under the new arrangements.

SMI - what's not included

SMI cannot help you pay:

• the amount you borrowed (only the interest on the mortgage is paid)
• anything towards insurance policies you have
• mortgage arrears

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_180321

StevieJ

Graham_Devon wrote: »

Nope. Where did you read that? I am saying, exactly what I am writing.

I've said over and over. 2 years max on SMI. After that, enough is enough.

That would seem reasonable, would that be a lifetime 2 years or 2 years each time you lose your job?

Graham_Devon

StevieJ wrote: »

Maybe it is because of this BTW over 50% won't even get the interest covered under the new arrangements.


http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_180321

Jeez.

Yes, that is all correct. But if someone gets a payment under SMI for £400 a month, and their interest is £300 a month, then £100 will get wiped off the capital.

This is one of the biggest reasons for the change!!

StevieJ wrote: »

That would seem reasonable.

And you will see it said by myself several times on SMI threads.

ukcarper

ILW wrote: »

It would make people realise that finance is a serious matter.

So why should we pay their rent

StevieJ

Graham_Devon wrote: »

Jeez.

Yes, that is all correct. But if someone gets a payment under SMI for £400 a month, and their interest is £300 a month, then £100 will get wiped off the capital.

This is one of the biggest reasons for the change!!



And you will see it said by myself several times on SMI threads.

So why don't they calculate each individually as their stated objective is to finance interest only?

mitchaa

carolt wrote: »

£3700/year - that's a lot of money.

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

That's not what it says though.

On a typical £150,000 home loan, payments will fall from £760 a month to £450. That's a £310 monthly fall, or £3,700 annual drop.

There are 53% of these 225k claimants aged over 60. Now forgive me, but does anyone know of anyone at all aged over 60 with an outstanding £150k mortgage? Their mortgages are likely to be peanuts, 4 figure sums or small 5 figure sums. They will also have I presume massive equity in their properties.

To the remainder 47%, again who actually has a £150k mortgage? Perhaps 10% of those? Who knows?

I think it's a very bad bit of reporting from the MSE team as if they go and review the threads on this site, most people are down less than £100pm or so and nowhere near the figures they talk of.

And to top it off, bloody well good. Why should the taxpayer be buying peoples homes for them? I have to pay for mine, so why cant they pay for theirs? They have been receiving 6.08% the last 18mths and never whinged one little bit due to the fact they have actually been getting overpaid. The country is trying to save money but yet here we are overpaying peoples mortgages.

The average SVR just now is at around 4.5% so for all those that have come off low fixed rates and onto the whopping 4.5% SVR rate then what have they been doing with the remainder 1.58% they have been receiving from the taxpayer? That's right, reducing the capital of their mortgage balance or going off on holiday.

They've had it good for far too long at 6.08%. Jesus, the BOE BR has been set at 0.5% the last 20mths or so.

ILW

ukcarper wrote: »

So why should we pay their rent

Because a roof over ones head is a necessity, owning a house is not.

StevieJ

ILW wrote: »

It would make people realise that finance is a serious matter.

I see, so it is education So someone on a low wage should be discouraged from contributing to a pension as the amount received in retirement will only cancel out their pension 'top up' - serious financial advice Also poorer people should be discouraged from owning their own home after all if you lose your job your rent will be paid anyway, as it will in retirement. Good serious advice for the individual a not so good for the govt :eek: