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800586
registered interest false more like this
date less than 2017-12-04more like thismore than 2017-12-04
answering body
Department for Work and Pensions more like this
answering dept id 29 remove filter
answering dept short name Work and Pensions more like this
answering dept sort name Work and Pensions more like this
hansard heading Support for Mortgage Interest more like this
house id 1 more like this
legislature
25259
pref label House of Commons more like this
question text To ask the Secretary of State for Work and Pensions, what steps he has taken to support people who, in the event of outstanding loans on their property increasing due to the replacement of mortgage interest credits with an interest-bearing loan from April 2018 (a) accrue negative equity in their home, (b) are threatened with re-possession of their home and (c) have their home re-possessed. more like this
tabling member constituency High Peak more like this
tabling member printed
Ruth George remove filter
uin 117207 more like this
answer
answer
is ministerial correction false more like this
date of answer less than 2017-12-07more like thismore than 2017-12-07
answer text <p>Support for Mortgage Interest (SMI) loans will continue to provide robust protection against repossession to all eligible claimants in times of need. The level of support available will be calculated in the same way as under the current benefit system. Claimants who take SMI loans and mortgage lenders will not see any difference in the payments they receive. There is no reason to expect lenders to behave any differently to now and we do not anticipate that this measure will lead to an increase either in threats to repossess or the number of homes that are repossessed.</p><p> </p><p>A low level of interest will be charged on these loans based on the cost of gilts. This rate reflects the cost of Government borrowing and is forecast to be 1.5 per cent when SMI loans are introduced in April 2018. Recovery of SMI loans will not be pursued until the property is sold or transferred, although a recipient may volunteer early repayment at any time that they are able to do so. If the amount of equity available to the Department for Work and Pensions after the sale of the property is less than the amount due to be recovered the balance will be written off. This includes cases where the property has negative equity.</p><p> </p><p>SMI benefit claimants are being contacted in advance of loans being introduced in April 2018.</p><p>Claimants are given information about how the SMI loan will work, about alternatives to the loan and organisations that can offer further information. Claimants are encouraged to consider how they can fulfil their mortgage commitments should they choose not to take up an SMI loan.</p>
answering member constituency Gosport more like this
answering member printed Caroline Dinenage remove filter
question first answered
less than 2017-12-07T15:48:07.77Zmore like thismore than 2017-12-07T15:48:07.77Z
answering member
4008
label Biography information for Dame Caroline Dinenage more like this
tabling member
4662
label Biography information for Ruth George more like this