The amount of money struggling homeowners can claim to
help them meet monthly mortgage repayments is to fall in July, after the
government cut the interest rate used to make the calculations. Currently
homeowners entitled to support for mortgage interest (SMI) can get help with
monthly payments on a mortgage worth up to £200,000 based on an interest rate
of 3.63%. But following a sharp fall in high-street mortgage rates, the rate
will be reduced to 3.12%. SMI is a means-tested benefit that can be claimed by
people receiving income-based jobseekers allowance, employment and support
allowance and pension credit. It is designed to cover a borrower’s interest
payments to their bank or building society, but not the original capital they
borrowed. It is currently claimed by 161,000 people. Read more on the This is
Money website.
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