The Brief: PM Rishi Sunak vowed to support the country’s homeowners who are struggling with their mortgage payments during the first Prime Minister’s Questions (PMQs) since Jeremy Hunt delivered the Autumn Statement. Through the Support for Mortgage Interest (SMI) scheme, support for interest payments on mortgages and loans for home repairs will be made available for up to £200,000 of the loan or mortgage. It will be repaid with interest once the house is sold or undergoes a transfer of ownership, according to details on GOV.UK.
Why It Matters: The scheme is intended to cushion the increasing pressure of higher mortgage rates, especially for fixed-rate mortgage holders who will soon need to refinance. Although borrowing costs have eased a bit in recent weeks, it still remains higher than pre-September’s mini-Budget.
Finanze Foresights: Much of the existing eligibility requirements of the SMI have been updated to cover more applicants. For instance, the wait period is now reduced to three months from nine months, and those who are currently earning an income can now qualify for support, although these reforms will not take effect until next year. The changes are likely to have been made after the clamour for the inclusion of low-income households who are currently getting hammered by high mortgage costs.
---
To the fullest extent permitted by law, Finanze Ltd are not responsible for any errors or omissions in any statements, views, opinions, facts, figures, commentary or any other material in the articles contained herein, or for loss arising from its use or performance, or for the results of any actions or lack of action taken on the basis of information provided in articles.
The topics covered in articles are complex and do not substitute the need for financial, legal, accounting, tax and other advice before making any decisions or taking any action based on information in articles.