Government plans to replace the benefits paid to help people pay their mortgage interest with repayable loans could cause real hardship according to a Freedom of Information reply obtained by Royal London.
The company is now calling on the government to delay the controversial changes until households have been given proper information about what is planned. Official figures show that around 124,000 households currently receive regular benefit help with their mortgage interest payments, including around 57,000 pensioners.
Letters and information booklets started to be sent out from last July. These are to be followed up by telephone calls so recipients can ask questions. This process is still ongoing with the DWP saying that “not all SMI claimants have been contacted as yet".
But DWP has now admitted that as at 22 January 2018 just 6,850 households had signed up for the new loan scheme. Those who do not agree to move over to the loan scheme will have their mortgage help terminated in April.
Royal London personal finance specialist Helen Morrissey said: “It is truly shocking that many thousands of low income families are yet to receive the information they need on the fact that their mortgage interest help could be switched off in just ten weeks’ time. If thousands of people fail to complete the process in time they could face real hardship and even potential repossession if they can no longer afford to meet their mortgage interest bills.
“The DWP should pause the implementation of this policy until it is confident that everyone has had full information about the changes and the time and support to make an informed decision.”
Latest News
-
Average UK house price surpasses £300k – Halifax
-
Bank of England holds base rate at 3.75%
-
Mortgage Advice Bureau acquires Dashly
-
Bridging loans fall to lowest average completion time in eight years
-
Regulators announce first six firms to join ‘Scale-Up Unit’
-
House prices recover month-on-month in January – Nationwide
Perenna and the long-term fixed mortgage market
Content editor, Dan McGrath, spoke to head of product, proposition and distribution at Perenna, John Davison, to explore the long-term fixed mortgage market, the role that Perenna plays in this sector and the impact of the recent Autumn Budget
The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.
NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?
Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
© 2019 Perspective Publishing Privacy & Cookies
Recent Stories