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<p>Support for mortgage interest (SMI) is not designed to meet all of a home owner’s
mortgage commitments. The prime policy objective is to avert the risk of repossession,
as far as is reasonable. There are no plans at present to alter any aspects of the
scheme.</p><p> </p><p>SMI is not available until the claimant has been in receipt
of benefit for nine months. This is because it is considered reasonable that they
make their own provision during short periods of sickness or unemployment. This might
be through mortgage interest payment protection insurance, savings or by negotiating
a re-scheduling plan with their lender. The large majority of claimants go back to
work within this timeframe.</p><p> </p><p>SMI already extends to people who are on
qualifying benefits, that is, who receive Income Support, income-based Employment
and Support Allowance, income-related Jobseekers Allowance, Pensions Credit and Universal
Credit.</p><p> </p><p>Since April 2018, SMI has been available as an interest-bearing
loan rather than as a cash benefit. Loans are not recoverable until the property is
sold and then only up to the amount of available equity after the primary mortgage
has been repaid. These arrangements ensure that claimants receive the same level of
protection they enjoyed when SMI was a benefit but enables the taxpayer to recoup
their investment. Many taxpayers are unable to afford to buy a property of their own
and it would be unfair if only the claimant were the beneficiary of the windfall that
their support protected.</p>
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