Smi

[or in excess of]

In October 2010, the rate of interest rate at which smi is calculated, was cut from 6.08% to 3.68%, because of falling interest rates. Since then, mortgage costs have dropped dramatically, but 3.68% is still being paid. As i understand it, any overpayment is used to reduce the capital. There must be a lot of people now who are having their home paid for by the taxpayer.

[RufflesTheGuineaPig]

That is one problem .... the other issues are that (unless it has changed) there is no charge on the property for the payments made by the taxpayer and for a number of people there is also no time limit for the payments and the mortgage cover was raised to 200k from 100k. So it is perfectly possible for someone to have a 200k mortgage funded for life and the kids inherit the full value of the property with no charge back for the SMI payments

It's also an issue that no consideration is given to when the loans were taken against the property.

4 years from retirement? Take out a mortgage, retire early and use the money to tour the world for 4 years.

[gf3]

In October 2010, the rate of interest rate at which smi is calculated, was cut from 6.08% to 3.68%, because of falling interest rates. Since then, mortgage costs have dropped dramatically, but 3.68% is still being paid. As i understand it, any overpayment is used to reduce the capital. There must be a lot of people now who are having their home paid for by the taxpayer.

I am against pensioners geting SMI for life.

However I would like to see people on HB treated the same as owners.

Two years in which to get your s**t to gether and then moved to the cheapest acomodation that fits your needs where ever that is in the county.

Althogh a lot of peple hate the fact that money goes from the private sector to the public sector. I think the wost crime is public sector money going to the private sector ie Private BTL landlords and their fund masters private banks.

Short term fixed morgage rates have dropped but I recon 3.68% is close to what people are really paying.

Edited April 20, 2013 by gf3

[Venger]

Short term morgage rates have dropped but I recon 3.68% is close to what people are really paying.

Don't think anything has happened with the calls for so called reform of SMI. SMI claiming pensioners along with everyone else after 2 years of claiming should have SMI payments charged against equity in their homes.

Proposals include the suggestion that new claimants who want to continue receiving support after a fixed period of time should receive this help in exchange for a charge on their homes, which can be recouped when the properties are sold.

Lord Freud said: "The current system of SMI payments does not encourage people to get on top of their own finances. It is also not sustainable. Even with today's low interest rates it costs government £400m a year.

2011: Coalition considers charge on support for mortgage interest scheme

[Dorkins]

.

Edited April 20, 2013 by Dorkins

[RufflesTheGuineaPig]

It should really depend on how many bedrooms they need.

Well in that case why not just pay everyone a set amount regardless age, employment or other circumstances, and they can put it towards their rent or mortgage.

You could call it "citizens housing income".

As it stands at the moment, we are singling out people for extra government hand-outs based purely on their age. We give old people money for being old.

Edited April 21, 2013 by RufflesTheGuineaPig

[Democorruptcy]

The last Autumn Statement extended SMI all the way to 2015

http://www.hm-treasury.gov.uk/as2012_policy_decisions.htm#Support_for_Mortgage_Interest_SMI

It's just another way to get banks lending, knowing taxpayers will cover any bad debts.