A little snippett spotted in today's Guardian ... another ticking timebomb for many ?
Confirmed by the DWP' own web site :
How many out there will be affected by this one ?
Now low interest rates ... what if they rise in the future ... say . back to 5 / 10%.
Any mortgage type calculator available online can calculate the real effect ... a mere £ 10,000 at 2% grows to £ 42,000+ over 25 years.
And , always assuming that house prices WILL continue to rise ?
One more to tack onto our Lord Kitch ... poor chap ... he'll be sinking under the weight of Issues before long ... into the same mire as us !
The implications are ... horrendous !
From next April, help with mortgage interest through means-tested benefits (including UC) will be via a loan.
This will plunge claimants even further into debt as they take interest-bearing loans to pay the interest on their mortgages.
Loans to pay loans, with no pressure to repay that loan, which will become a constantly increasing charge on the property, reclaimed on sale or transfer by the DWP.
There is no transitional protection, and people are currently being contacted to be offered this. In the words of Ken Loach, “conscious cruelty”.
Confirmed by the DWP' own web site :
When SMI benefit ends
SMI benefit is ending on 5 April 2018, and will be replaced by a loan.
The loan offers the same support for paying your mortgage interest. However, you’ll need to repay the loan with interest when you sell or transfer ownership of your home.
You’ll get a letter by February 2018 telling you about the loan and other options available to you.
How many out there will be affected by this one ?
Now low interest rates ... what if they rise in the future ... say . back to 5 / 10%.
Any mortgage type calculator available online can calculate the real effect ... a mere £ 10,000 at 2% grows to £ 42,000+ over 25 years.
And , always assuming that house prices WILL continue to rise ?
One more to tack onto our Lord Kitch ... poor chap ... he'll be sinking under the weight of Issues before long ... into the same mire as us !
The implications are ... horrendous !