|    FM Home   |    FM News   |    FM Forum   |    FM Blog   |    20th of January 2018
|   Banking  |   Insurance  |   Property  |   Mortgages  |   Economy  |   Investments  |   Credit Cards  |   Debt  |   Loans  |   Pensions  |   Companies  |  

Mortgage News feed Mortgage News

All Financial News feed All Financial News

Budget change to Support for Mortgage Interest scheme

Bookmark and Share

by Gill Montia

Yesterday’s emergency Budget contained a change to the Support for Mortgage Interest (SMI) scheme, which aims to give homeowners in financial difficulties time to find new employment or recover income, without the added stress of potentially losing their homes.

The scheme involves lenders reducing a borrower’s monthly mortgage payments by deferring interest, which can be settled at a later date once the borrower’s financial circumstances have improved.

The Government guarantees the lender against a proportion of any loss, should the borrower default.

Currently SMI should be paid at 1.58% above the Bank of England’s base rate but the SMI rate was frozen at 6.08% in late 2008, although interest rates have since fallen significantly.

Chancellor of the Exchequer, George Osborne, announced yesterday: “To put SMI on a more sustainable footing and to better reflect mortgage costs, SMI will be paid at the level of the Bank of England’s published Average Mortgage Rate from October 2010.”

In his Budget speech, the Chancellor also confirmed that a review the stamp duty land tax relief for first-time buyers will be taking place, to assess the impact of the tax on affordability and value for money.

Discuss this in the Finance Markets forums

Story link: Budget change to Support for Mortgage Interest scheme

News posted: June 23, 2010

Financial Services:

Related financial stories to: Budget change to Support for Mortgage Interest scheme:
Previous: «
Next: »

Visited 4827 times, 2 so far today

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.

Tags: ,