Changes announced to Support for Mortgage Interest policy
Disabled people and others receiving Support for Mortgage Interest (SMI) will now be able to transfer this support to their new property when moving home, rather than having to repay the loan and reapply, it has been announced.
SMI is the help offered by the Government to owner occupiers in times of need. It is paid as a loan and contributes towards the interest on people’s mortgages if they are in receipt of certain benefits, to protect them against repossession and keep them in their own homes.
Previously, those receiving an SMI loan were required to repay the balance once a property is sold or transferred, provided there is enough equity after the mortgage has been paid off. They would then be asked to reapply for the loan on their new property.
However, the Minister for Family Support, Housing and Child Maintenance, Will Quince, confirmed that anyone with an SMI loan secured against their property will now be able to request their loan balance to be transferred to their new home when they move.
The policy shift will ensure those looking to move home to secure better employment will not face barriers to progressing in work. This follows the Work and Pensions Secretary Amber Rudd’s recent call for a new Government focus on helping people to move to higher paid, higher skilled roles.
Quince pointed out that the change will have a particular benefit for those who move into a new property due to a disability or health condition, as they will continue to receive uninterrupted support towards their mortgage payments.
‘This measure helps some of the most vulnerable people to stay in their homes and live independently. And we are now making it easier for people to keep this support, even when moving house.’
According to David Abbey, MySafeHome Limited Managing Director, allowing vulnerable people with disabilities to port their SMI loan reaffirms the Government’s full support for HOLD (Home Ownership for people with Long-term Disabilities).
David Abbey said:
‘This change should give many more individuals the opportunity to choose where and how they live their lives. The ability to transfer an SMI loan balance will also apply to those who have previously received this form of support but are no longer claiming benefits.’
And to ensure vulnerable customers or those with additional needs are fully supported, the Department for Work and Pensions (DWP) has issued two videos explaining Support for Mortgage Interest and setting out how to apply. These videos form part of a new range of fully accessible products offering helpful information in alternative formats.
Kindly shared by Property Wire