DWP mortgage intrest payment change

hiya iv had my mortgage for 11 years and got 8 years left on it I get help off DWP with help for my interest payment ,only got £14.250 left to pay it off,
I heard something about interest payments changing and came across this piece in the web,,

""The Government could charge interest on mortgage lifelines for unemployed homeowners as well as taking a stake in their home, as part of a major overhaul.

Currently, unemployed homeowners can claim for Support for Mortgage Interest help to pay their mortgage, 13 weeks after signing up for Jobseeker’s Allowance and other income-related benefits - without having to pay it back.

But a dramatic change could see the taxpayer take a stake in their home, as the scheme is turned into a loan system, with interest potentially charged. Current interest rates on taxpayer-backed loans range from the low 1.75 per cent starting rate put on Help to Buy deposit loans, to the RPI inflation plus 3 per cent on student loans, where borrowers are currently paying 6.3 per cent.


Read more: www.thisismoney.co.uk/money/mortgageshom...I.html#ixzz3h6t7VDXS

I cant understand a word they are saying in this link has this come in yet ?? does this mean I do not own my home when I pay my mortgage off fully and that the DWP own a stake ???

I only understand laymans terms, and reading above is another language !!! please can you explain t a little easier please than above thanks

maggieomx wrote: hiya iv had my mortgage for 11 years and got 8 years left on it I get help off DWP with help for my interest payment ,only got £14.250 left to pay it off,
I heard something about interest payments changing and came across this piece in the web,,

""The Government could charge interest on mortgage lifelines for unemployed homeowners as well as taking a stake in their home, as part of a major overhaul.

Currently, unemployed homeowners can claim for Support for Mortgage Interest help to pay their mortgage, 13 weeks after signing up for Jobseeker’s Allowance and other income-related benefits - without having to pay it back.

But a dramatic change could see the taxpayer take a stake in their home, as the scheme is turned into a loan system, with interest potentially charged. Current interest rates on taxpayer-backed loans range from the low 1.75 per cent starting rate put on Help to Buy deposit loans, to the RPI inflation plus 3 per cent on student loans, where borrowers are currently paying 6.3 per cent.


Read more: www.thisismoney.co.uk/money/mortgageshom...I.html#ixzz3h6t7VDXS

I cant understand a word they are saying in this link has this come in yet ?? does this mean I do not own my home when I pay my mortgage off fully and that the DWP own a stake ???

I only understand laymans terms, and reading above is another language !!! please can you explain t a little easier please than above thanks

Hi momx,

Yes, the changes to Support for Mortgage Interest (SMI) were announced in The Budget on 08/07/15.

From April 2018 SMI will change from a "Benefit" to a "Loan" which will be repayable if the SMI recipient gets a job, sells their property, or out of their estate if they die.

Gordon pointed out In Your Other Topic that if you lose your entitlement to your Income Related (IR) ESA payments due to your son moving in, you will also lose your entitlement to SMI.

This is why he has advised you to get a face to face "Benefit Check" before your son moves in.

More information on the Budget changes including to SMI can be found in : This Topic. which is now locked.

bro58

Iv been claiming it 11 years since i bust my back and got 8.more years to go till its paid is the ruleing for new claimants or everyone ? I worked so hard to get my home to leave to my children and it knocks me sick thinking they could have a stake in my home "should of been an M.P ? ID OF HAD 3 HOUSES BY NOW " !!

Iv been claiming it 11 years since i bust my back and got 8.more years to go till its paid is the ruleing for new claimants or everyone ? I worked so hard to get my home to leave to my children and it knocks me sick thinking they could have a stake in my home "should of been an M.P ? ID OF HAD 3 HOUSES BY NOW " !!

Bro58 my lads not moving in with me now i hate to say it but if he had i would of lost to much hes got a good friend with a house and hes going there thankyou for advice given xx

Hi momx,

The changes to SMI will take effect from April 2018 and will affect all SMI claimants/recipients, including current ones :

Support for mortgage interest changes will hit current claimants.

bro58