Government Urged To Postpone ‘Second Mortgage’ Scheme

The government has been urged to stall controversial benefit changes which came into effect in the new tax year, amid claims they unfairly penalise the most vulnerable in society. On 6 April, a “second mortgage” system replaced the Support for Mortgage Interest (SMI), which helped financially constrained homeowners with their mortgage payments. From this month, it will no longer be paid as a free benefit but, instead, the government is offering to loan people the money, which will have to be repaid later with interest. The move attracted anger from a number of recipients of the benefit who said they had not been properly informed of the move. Read more on the Observer website.

https://www.theguardian.com/money/2018/apr/14/support-second-mortgage-interest-benefit-complaints

Anger As Thousands Unaware They Face A ‘Second Mortgage’

The government has been called on to delay a new “second mortgage” scheme, which replaces a benefit for homeowners on low incomes, after just one in 20 affected households have signed up for it. From April, the government is axing “support for mortgage interest” (SMI) which helps financially constrained homeowners with their mortgage. It will be replaced with a controversial system where the government offers to loan people the money, which will be repaid later with interest. However, new figures have shown that just 6,850 households have signed up for the scheme out of the 124,000 currently receiving the SMI benefit, prompting calls for the changeover to be delayed. Read more on the Guardian website.

https://www.theguardian.com/money/2018/feb/05/state-benefit-support-mortgage-interest-loan

Scrapping Mortgage Help Scheme Will Push Millions Closer To Homelessness

Plans to scrap a government mortgage help scheme - coupled with a hike in interest rates - could push millions of families closer to homelessness, according to Labour’s shadow housing minister. John Healey says the shock to household finances caused by the first rates rise in 10 years could cause problems for 3.5 million households with variable rate mortgages. The government’s decision to turn its Support For Mortgage Interest scheme, which previously helped those struggling with contributions towards mortgage interest payments, into a loan system will also add to financial problems for those struggling to keep up repayments, the Yorkshire MP says. Read more on the Huffington Post website.