Mortgage: some people may qualify for support for mortgage interest


Play all audios:

Mortgages are currently being supported by the government in a way which has never been seen before. Last week, Rishi Sunak announced that mortgage “holidays” can be put in place for people


who need it. This means that is a person feels that they may struggle to pay the mortgage bills because of coronavirus, they can take a three month break in which the mortgage doesn’t need


to be paid at all. This is designed to give the person time to get back on their feet and hopefully allow them to get in a better financial position. This will undoubtedly be relieving for


many homeowners but it is not the only support the government offers. Some people could receive further mortgage support if they’re claiming a benefit such as income-related Employment and


Support Allowance, Income Support or Universal Credit. MORTGAGE: CORONAVIRUS: EXPERT PROVIDES ACTION PLAN FOR RENTERS On top of this, it must be remembered that this is a loan, it will need


to be paid back with interest. So long as the person qualifies, they could get help paying up to £200,000 for the mortgage. Currently, the interest rate used to calculate the amount of SMI


received is 2.61 percent. There is also interest added to the loan that can go up or down but it will not change more than twice a year. As it stands, this additional rate is 1.3 percent.


Anyone who applies for once of the qualifying benefits will automatically be asked extra questions about their housing costs. If the claimant ticks certain eligibility boxes, they may be


sent a form asking for more detailed information. The claimant can also make enquiries themselves about SMI by contacting their relevant office that pays their benefits. It should be noted


that all queiries of this nature are now being handled exclusively online or over the phone.