Saturday, Feb 10, 2018

SMI being withdrawn and replaced with a loan

Mirror: Thousands facing real hardship and even repossession as vital benefit replaced with loan

On the forums I would be flamed for "pitying the homeowner". I get the moral hazard associated with supporting mortgage interest payments with benefits, on the other hand this is going to affect vulnerable groups. Good for house price deflation, but, many cases of cruelty...? Looking at benefits blogs
many people selling up and then claiming HBI which is more expensive! So I guess councils will also reduce hbi?

Posted by nickb @ 12:50 PM (2404 views) Add Comment


1. nickb said...

I mean claiming HB ...

Saturday, February 10, 2018 01:02PM Report Comment

2. quiet guy said...


It's only natural that those receieving free interest rate payments won't like transitioning to loans but the SMI loan scheme looks pretty reasonable to me. I doubt it will impact the housing market either - the numbers of claimants being just under half of a percent of the UK households. Compared to the alternatives, I'd be pretty OK with this if I needed it. Much better than than selling and dealing with letting agents and landlords.

Saturday, February 10, 2018 02:23PM Report Comment

3. mombers said...

The program will not repossess anyone's home even if the loan pushes total debt to over 100%. Non story.

Monday, February 12, 2018 09:24AM Report Comment

4. nickb said...

Hardly anyone has taken up the loan which is supposed to replace smi (5% apparently), and if you read the benefits thread (most people on here won't it seems) it seems there are people selling up. So I'm not so sure it's a non-story. The DWP apparently has talked about justifying the switch on the grounds that property prices normally go up! I think we can agree that is dubious.

Monday, February 12, 2018 02:47PM Report Comment

5. mombers said...

@4 The scheme writes off any balance after the home is sold. So the main difference here is that some people will get a smaller inheritance.

Monday, February 12, 2018 04:13PM Report Comment

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