There are approximately 90,000 people that claim support for mortgage interest (SMI), but the government will begin replacing these benefits with government loans. Although these SMI loans would not have to be paid back until the property is sold or transferred, Labour suggests that this switch to loans would cause hardship for certain demographics. Specifically, the elderly and the disabled may feel unprepared to take on the new loans, and may cut back on important utilities such as heating and water to save money.
Key Takeaways:
- Labour has issued a warning that some people may not be able to pay their mortgages due to upcoming benefit changes.
- Approximately 90,000 citizens that receive the claims support benefit for mortgage interest are being switched to a government loan benefit.
- Some seniors and others that receive the SMI benefit are not going to accept the loan, which means they may be cutting back on other essentials such as heat in order to afford their mortgage payments.
“51% – about 27,000 people – had said they intended to decline the offer of a loan”