Bad news for homeowners
22 June 2010
The Government's plan to pay Support for Mortgage Interest (SMI) at the same rate as the Bank of England monthly rate is bad news for struggling homeowners, Shelter chief executive Campbell Robb has said.
In response to today’s budget announcement, Mr Robb said:
‘This is not good news for those struggling homeowners who are just about managing to keep a roof over their head thanks to the support they are getting through SMI, not to mention the thousands of homeowners who will potentially need help in the coming months.
‘SMI has been one of the key schemes in helping hold back the rising tide of repossessions. But the reality is that most people on SMI are on higher than average interest rates, so there is a real danger it will no longer help the people who need it most and could trigger a surge in repossessions.
‘Introducing a system where rates will change monthly will create additional uncertainty for thousands of people already struggling day to day. The only solution is to ensure that SMI is paid at the rate of interest that people are currently being charged.’