Support for mortgage interest benefit cut by thousands of pounds

ukcarper

ILW wrote: »

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.

You could do that but you would have to sort out theses policies first as I believe there are a lot of exclusions that prevent people from claiming.

StevieJ

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.

Exactly so the payments are to cover notional interest payments (i.e. theoretical) because it is cheaper to do it that way.

StevieJ

ukcarper wrote: »

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

Good shout.

ukcarper

ruggedtoast wrote: »

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.

A

New social housing lovely idea but there wasn’t much chance of that happening under the last government let alone this one

silvercar

mitchaa wrote: »

Those that have housing benefit or LHA paid do not make any money but those on ISMI can potentially make a fortune.

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

At the new rate only half the claimants will have the interest on the loan paid. That leaves half to build up arrears plus all those on repayment mortgages to get into arrears. I'm not saying that capital should be repaid, but those in an unfortunate position to need to claim more than half will get into arrears.

ruggedtoast wrote: »

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.

There is a shortage of social housing and a waiting list years long. It wouldn't be right for those unable to meet their mortgage payments to jump to the top of the council housing waiting lists.

StevieJ

ukcarper wrote: »

You could do that but you would have to sort out theses policies first as I believe there are a lot of exclusions that prevent people from claiming.

To public sector worker ' It was obvious the Tories would get in so you knew you were going to lose your job didn't you?, no payout for you'

Graham_Devon

ukcarper wrote: »

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

The government would still have to make sure that person is actually entitled to the amount the banks say they are.

There are certain benefits you need to be on to be eligible, so the government would have to make sure the person is on all those benefits and therefore qualifies for the payment the bank states they do. So it's just the same amount of work to verify the banks calculation.

Will the banks inform the government when the person claiming SMI is no longer eligible? How would they know?

silvercar

There has to be some parity between people getting support to pay their rent and people getting support to pay the interest on their mortgage.

LHA is a cheap and cheerful calculation, as is SMI. Winners and losers on both but what we don't want to see is the administration costs of running the scheme eating up thousands of taxpayers money.

wherediditallgothen

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.

This might seem a stupid idea to those with far more knowledge about the subject than I, but could the interest payment system track the base rate plus a certain % to account for a margin for error? Or is that the theory behind what it does now?

The % above could be based upon past interest rates, and could be reviewed every so often?

ILW

StevieJ wrote: »

To public sector worker ' It was obvious the Tories would get in so you knew you were going to lose your job didn't you?, no payout for you'

If you know your job is at risk, you should not be taking out a new mortgage. I would consider that irresponsible.