Home is where the heart is – that’s what recent research* tells us. For example, homeowners are more satisfied with their homes than renters. What’s more, 28% of homeowners report an emotional attachment to their personal slice of the UK’s housing stock. In short, people love their homes. Of course, it’s easy to understand why where we live is so important to us: so much of our development and growing up is done inside the space we call ‘home’; it’s as if bricks and mortar really do become part of our DNA.
But what if you were forced to sell your home because of illness or injury? Are you even aware of the Chancellors** plans to reform support for those who fall into difficulty with mortgage repayments?
Support for Mortgage Interest (SMI)*** is designed to provide financial help towards interest payments on mortgage and home improvement loans. People who qualify can get help paying the interest on up to £200,000 of the loan. It’s normally paid direct to the lender after a waiting period, which is 13 weeks after claiming benefit. However, this is all set to change.
By 2018, SMI will switch from a benefit to a repayable loan and the waiting period is set to change to 39 weeks from April 2016****. Claimants will be expected to repay the amount that they have received, plus interest, either when they get back into work or when their home is sold.
By moving SMI to a repayable loan basis completely changes what we can expect to receive from state support. In order to ensure your home remains your home in the event of illness or long tem injury contact us to discuss the solution that is best works for you. Call our advisers on 0800 612 8099.
Sources of information
* Aviva Family Finances Report (August 2015) © Aviva plc http://www.aviva.co.uk/home/home-advice/article/aviva-family-finances-report-2015/
**Summer Budget 2015 HM Treasury (July 2015) Section 1.156 https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/443232/50325_Summer_Budget_15_Web_Accessible.pdf
*** Support for Mortgage Interest (SMI) https://www.gov.uk/support-for-mortgage-interest/overview
****Money Advice Service https://www.moneyadviceservice.org.uk/en/articles/government-help-if-you-cant-pay-your-mortgage