SMI loan interest rate change

Tulip99

Hi,
Does anybody know when the SMI loan interest rate of 2.09% will change and by how much? I’m severely disabled and facing repossession if nothing changes soon.

franklin.adele

I would like to know this also,i was clearly wrong in assuming when the interest rates went up so did the "help" as it went down when the rates went down and also looked it up on this site and read this  "This means as mortgage rates go up, the SMI rate will too, so you won't have to pay the shortfall. Similarly, it will go down if mortgage rates drop – though the change only takes place a couple of months after the target's hit." which turns out to be incorrect as i fell into arrears as i did not know i had a shortfall as i assumed like this quote says that when the rates went up so did the support for interest,up to the 6th increase this year and having to find an extra £150 and money for energy costs,nothing seems to be happening with this im not sure what to do,im thinking just cover the repayment amount and a small amount towards the interest as i cant afford the full amount anymore,there is no information on this anywhere,i have a lady who helps me with debt and budgeting due to my illness and she cant find anything out she even contacted out mp who was very vague about SIR and base mortgage rate and it having to rise by .5% before payments go up,they have gone way above that amount now!

silvercar

franklin.adele said:

I would like to know this also,i was clearly wrong in assuming when the interest rates went up so did the "help" as it went down when the rates went down and also looked it up on this site and read this  "This means as mortgage rates go up, the SMI rate will too, so you won't have to pay the shortfall. Similarly, it will go down if mortgage rates drop – though the change only takes place a couple of months after the target's hit." which turns out to be incorrect as i fell into arrears as i did not know i had a shortfall as i assumed like this quote says that when the rates went up so did the support for interest,up to the 6th increase this year and having to find an extra £150 and money for energy costs,nothing seems to be happening with this im not sure what to do,im thinking just cover the repayment amount and a small amount towards the interest as i cant afford the full amount anymore,there is no information on this anywhere,i have a lady who helps me with debt and budgeting due to my illness and she cant find anything out she even contacted out mp who was very vague about SIR and base mortgage rate and it having to rise by .5% before payments go up,they have gone way above that amount now!

Your lender will put your payment firstly towards the interest not the capital, so your comment bolded is actually the other way round.

franklin.adele

silvercar said:

franklin.adele said:

I would like to know this also,i was clearly wrong in assuming when the interest rates went up so did the "help" as it went down when the rates went down and also looked it up on this site and read this  "This means as mortgage rates go up, the SMI rate will too, so you won't have to pay the shortfall. Similarly, it will go down if mortgage rates drop – though the change only takes place a couple of months after the target's hit." which turns out to be incorrect as i fell into arrears as i did not know i had a shortfall as i assumed like this quote says that when the rates went up so did the support for interest,up to the 6th increase this year and having to find an extra £150 and money for energy costs,nothing seems to be happening with this im not sure what to do,im thinking just cover the repayment amount and a small amount towards the interest as i cant afford the full amount anymore,there is no information on this anywhere,i have a lady who helps me with debt and budgeting due to my illness and she cant find anything out she even contacted out mp who was very vague about SIR and base mortgage rate and it having to rise by .5% before payments go up,they have gone way above that amount now!

Your lender will put your payment firstly towards the interest not the capital, so your comment bolded is actually the other way round.

Ok thanks did not realise that but i suppose its no surprise. Cant believe they have just left us in this limbo the support for mortgage loan really isnt fit for purpose is doesnt support the interest,even MSE himself seems to think if mortgage interest rates go up so does the smi rate so we dont have to pay the shortfall,i understand it can be delayed but its almost a year now since they started to go up and theres been nothing,we even contacted them directly and they have no clue at their end either or they didnt back in June.  

housebuyer143

franklin.adele said:

silvercar said:

franklin.adele said:

I would like to know this also,i was clearly wrong in assuming when the interest rates went up so did the "help" as it went down when the rates went down and also looked it up on this site and read this  "This means as mortgage rates go up, the SMI rate will too, so you won't have to pay the shortfall. Similarly, it will go down if mortgage rates drop – though the change only takes place a couple of months after the target's hit." which turns out to be incorrect as i fell into arrears as i did not know i had a shortfall as i assumed like this quote says that when the rates went up so did the support for interest,up to the 6th increase this year and having to find an extra £150 and money for energy costs,nothing seems to be happening with this im not sure what to do,im thinking just cover the repayment amount and a small amount towards the interest as i cant afford the full amount anymore,there is no information on this anywhere,i have a lady who helps me with debt and budgeting due to my illness and she cant find anything out she even contacted out mp who was very vague about SIR and base mortgage rate and it having to rise by .5% before payments go up,they have gone way above that amount now!

Your lender will put your payment firstly towards the interest not the capital, so your comment bolded is actually the other way round.

Ok thanks did not realise that but i suppose its no surprise. Cant believe they have just left us in this limbo the support for mortgage loan really isnt fit for purpose is doesnt support the interest,even MSE himself seems to think if mortgage interest rates go up so does the smi rate so we dont have to pay the shortfall,i understand it can be delayed but its almost a year now since they started to go up and theres been nothing,we even contacted them directly and they have no clue at their end either or they didnt back in June.  

That's really shocking to hear. I am on a tracker and will soon be paying 4%. 2% support for interest is ridiculous! How can they give less than the base rate in "support"

franklin.adele

housebuyer143 said:

franklin.adele said:

silvercar said:

franklin.adele said:

I would like to know this also,i was clearly wrong in assuming when the interest rates went up so did the "help" as it went down when the rates went down and also looked it up on this site and read this  "This means as mortgage rates go up, the SMI rate will too, so you won't have to pay the shortfall. Similarly, it will go down if mortgage rates drop – though the change only takes place a couple of months after the target's hit." which turns out to be incorrect as i fell into arrears as i did not know i had a shortfall as i assumed like this quote says that when the rates went up so did the support for interest,up to the 6th increase this year and having to find an extra £150 and money for energy costs,nothing seems to be happening with this im not sure what to do,im thinking just cover the repayment amount and a small amount towards the interest as i cant afford the full amount anymore,there is no information on this anywhere,i have a lady who helps me with debt and budgeting due to my illness and she cant find anything out she even contacted out mp who was very vague about SIR and base mortgage rate and it having to rise by .5% before payments go up,they have gone way above that amount now!

Your lender will put your payment firstly towards the interest not the capital, so your comment bolded is actually the other way round.

Ok thanks did not realise that but i suppose its no surprise. Cant believe they have just left us in this limbo the support for mortgage loan really isnt fit for purpose is doesnt support the interest,even MSE himself seems to think if mortgage interest rates go up so does the smi rate so we dont have to pay the shortfall,i understand it can be delayed but its almost a year now since they started to go up and theres been nothing,we even contacted them directly and they have no clue at their end either or they didnt back in June.  

That's really shocking to hear. I am on a tracker and will soon be paying 4%. 2% support for interest is ridiculous! How can they give less than the base rate in "support"

I know,there has been another massive hike since this and ive heard nothing. I went to CAB for help and my debt adviser had contacted them but they know nothing at their end its like they are waiting for something,all info i have found says it goes up to cover the interest when that goes up,literally on this website it says we wont need to worry about covering a shortfall but ive beeen worrying about this since january its just gone up and up and smi seem to have vanished,though i have had letters about the interest rate on the repayments to them going up but nothing about the "help" they are meant to be providing. It also says there is a lag of 2 months for them to catch up when the rates go up but they have gone up 6 or 7 times now and not a single letter or contact about an increase in "support". My debt adviser even contacted out local mp but with all the government changes they dont seem to be in any rush to sort it out and have said it goes up with the SIR rate goes up by .5% pretty sure its done more than that,its very scary !

Fernierice

First time posting please advise 

I have found myself in very difficult situation I have a mortgage on 1 bed flat ove had fir 15 years never missed a payment , I am currently pregnant , off sick from work soon be on maternity . I will not be able to pay my mortgage I've put freeze on it for 6 months . Ii don't class as being eligible for social housing because I have 1 bed which I won't be able to pay nor is it big enough for a child .
What is SMI reading about it but don't understand it cab someone explain how it works to me please 

housebuyer143

SMI is a loan from the government to cover you mortgage interest only, although it's not paying anywhere near the interest rates you are probably paying. When you apply for UC there is the option to apply for this. 
The loan is paid back when you sell the house.