The Government is scrapping its Support for Mortgage Interest (SMI) scheme and replacing it with a loan from next April 2018. The move could be a massive blow to thousands of low-income pensioners.
Thousands of pensioners and working-age families are at risk of losing their homes as part of a controversial benefits overhaul.
The Government has announced plans to scrap the Support for Mortgage Interest (SMI) benefit and replace it with a loan from April 2018.
The Department for Work and Pensions (DWP) has been sending out letters to 135,000 households – of which 65,000 are low-income pensioners – telling them to decide whether they want to take responsibility for the loan when the benefit is scrapped.
However, insurer Royal London has slammed the move, pointing out that claimants aren’t being told what rate the new SMI Loan will charge or being given enough guidance on taking out the state-backed second mortgage.