UK. Thousands of families and pensioners at risk of repossession as government scraps crucial mortgage benefit
Thousands of pensioners face potentially losing government help with mortgage payments when the system changes in six months time, an insurance firm has warned.
People are being left in the dark over key changes to Support for Mortgage Interest (SMI) due to come into effect in 2018, Royal London claimed. The SMI is currently paid as a benefit direct to a lender to cover interest payments on mortgages, but from April this is replaced by a loan that the firm says is a “second mortgage”.
Royal London says that letters being sent to SMI recipients are missing key information like the rate of interest they will be expected to pay on the new loans. The company says its analysis suggests the rate will be around 2.2%, but could change depending on what happens to interest rates.
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