Support for mortgage interest benefit cut by thousands of pounds

ukcarper

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.

Surely the best solution would be to pay the actaul interest and not the same to everybody. I believe SMI is paid direct to bank where as LHA is paid to tenent who can choose to pay landlord or not and some do not.

ILW

StevieJ wrote: »

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:

Or maybe encourage people to take out a mortgage that is not the maximum they can afford and allows to put something away for the times when income may dry up.

ukcarper

ILW wrote: »

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

Let just put them in hostels then.

StevieJ

ILW wrote: »

Or maybe encourage people to take out a mortgage that is not the maximum they can afford and allows to put something away for the times when income may dry up.

Do you really believe that

ILW

StevieJ wrote: »

Do you really believe that

It would be an improvement on the current situation. The state should be a safety net, not an alternative to trying to cover yourself.

ruggedtoast

I completely support government intervention for people who are unable to pay their mortgages and need a safety net. However that intervention must be in the form of suitable, safe, social housing.

Anything else is absolute madness.

How many council houses could that money have built this year? There should be legislation to protect people who are a bit in arrears, but paying peoples private debts for them is completely contradictory to a free market.

As usual it looks like Brown got everything upside down again.

Graham_Devon

StevieJ wrote: »

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

Can you imagine the costs of such a department that would be needed to calculate everyones interest payments....then change them if any circumstances change...and pay all these different individual payments?

Let alone the timescale required to initially get the claim sorted.

ILW

Altenatively, why not bring in legislation that says any mortgage MUST have an associated insurance policy which will pay out for a period of one year in the case of loss of a job.

ukcarper

Graham_Devon wrote: »

Can you imagine the costs of such a department that would be needed to calculate everyones interest payments....then change them if any circumstances change...and pay all these different individual payments?

Let alone the timescale required to initially get the claim sorted.

As the banks are paid directly they could work out payment (they must have already) and inform government.

mitchaa

Those that have housing benefit or LHA paid do not make any money but those on ISMI can potentially make a fortune. The government should therefore apply a levy on the sale of the home when it sold as I think it is wrong that people can make money/wealth out of this. Depending on how long you have been getting the mortgage paid depends on how much levy the government applies.

It's a crazy system along with the LHA system.