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Smi Figures ?

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Does anyone know how many people in the UK are benefiting from SMI (Support for Mortgage Interest) payments ?

To me the SMI (in addition to low rates) has been a key prop in keeping the bubble inflated, but it can only delay the inevitable.

Looking at the details, you can only claim SMI for 2 years.

Which makes me wonder what bulk of those on it are near the end of the 2yrs.. and what happens to them once it lapses ?

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Does anyone know how many people in the UK are benefiting from SMI (Support for Mortgage Interest) payments ?

To me the SMI (in addition to low rates) has been a key prop in keeping the bubble inflated, but it can only delay the inevitable.

Looking at the details, you can only claim SMI for 2 years.

Which makes me wonder what bulk of those on it are near the end of the 2yrs.. and what happens to them once it lapses ?

Gordon Brown is on it now I believe.

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I know someone who is on it, but i am not sure how long they have been on it, i would guess over a year though, and i think it is responsible for keeping prices higher and stopping repos

are the new Gov carrying on with this?

and can you only get max 2 years out of it?

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I know someone who is on it, but i am not sure how long they have been on it, i would guess over a year though, and i think it is responsible for keeping prices higher and stopping repos

are the new Gov carrying on with this?

and can you only get max 2 years out of it?

It used to be indefinite I can't remember when it changed. It used to be payed at 6% but the libcons attached it to some BOE thingy and it's now something like 3% which is good.

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It used to be indefinite I can't remember when it changed.

Conditions that apply to SMI since 5 January 2009

There are some conditions that apply to most claims for help with your mortgage interest made since 5 January 2009:

* you wait 13 weeks from the date you claim before you get SMI (this is known as a waiting period and was previously 39 or 26 weeks)

* you’ll be able to claim for mortgage interest on up to £200,000 of your mortgage (this was previously £100,000)

* if you have claimed Jobseeker’s Allowance on or after 5 January 2009 you’ll be paid SMI for two years only

----

Begs the question, if you don't claim JSA, does the 2yr restriction still apply ?

I hope it's means tested, not sure I'm happy paying taxes to fund the mortgage for someone with lots of savings

Edited by exiges

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Conditions that apply to SMI since 5 January 2009

There are some conditions that apply to most claims for help with your mortgage interest made since 5 January 2009:

* you wait 13 weeks from the date you claim before you get SMI (this is known as a waiting period and was previously 39 or 26 weeks)

* you’ll be able to claim for mortgage interest on up to £200,000 of your mortgage (this was previously £100,000)

* if you have claimed Jobseeker’s Allowance on or after 5 January 2009 you’ll be paid SMI for two years only

----

Begs the question, if you don't claim JSA, does the 2yr restriction still apply ?

I hope it's means tested, not sure I'm happy paying taxes to fund the mortgage for someone with lots of savings

If your not claiming JSA it's probably assumed you an pay your mortgage.

So 5th January 2011 is when the fun starts. Sounds like a nice birthday present for me :)

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I've just done some Googling:

According to THIS ARTICLE dated 28, Jan 2009:

The DWP has not revealed how many people have been underpaid or by how much but last year [ed: 2008, before the crash] there were around 83,300 people on income support receiving support for mortgage interest payments and around 9,100 on job seekers allowance receiving support for mortgage interest.

So looks like you can claim SMI without claiming JSA.

Now that's Jan 2009, not Jan 2010, I should imagine the number is much more than 83,300.

Worst case scenario, assuming everyone has a £200k mortgage (I know they don't), it was being paid at 6% (yes, I know it's come down to 3%), the taxpayer was on the hook to the tune of £12,000pa x 83,300 = £999,600,000 or lets call it a round billion

Say it again slowly.

Edited by exiges

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My guess is that the government will extend it. So far all they have done is talk about cuts and savings. OK they have cut a few quangos but we are still borrowing £1 for every £4 that we spend. The full economic review is in October and I would not be surprised if the economic recovery is such that there does not need to be any real cuts save a few more token examples.

Government should stop it right now, people can just stay on it forever , it is crazy.

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