September 21, 2018

Help With Mortgage Payments

Homeowners the length and breadth of the country are being financially squeezed. Meeting the costs of food and fuel bills, especially in this climate, are the main concerns of households, and other payments such as mortgages are often put on the back burner. For those struggling to pay off their mortgages, there are ways in which you can get help. Using online tools such as a mortgage calculator can prove to be very helpful, but there are other ways in which help are being provided.

Struggling homeowners nationwide are being given help by the government. In households where the main breadwinner has lost their job and is claiming benefits such as Jobseekers’ Allowance (JSA), Income-related Employment and support allowance and Income support, there was a scheme introduced by the previous Labour government in 2009 called the Homeowners’ Mortgage Scheme (HMS), where assistance was offered to households which experienced a temporary loss in income.

HMS allowed those who were eligible for help to defer paying part of the mortgage for a period lasting up to two years, but this scheme for new applicants on 21st April 2011. However, the new coalition government have kept a second scheme going. The Support for Mortgage Interest (SMI) initiative will remain open until January 2013.

Like HMS, it was designed to help those claiming benefits after losing their jobs. It will help people pay off the first £200,000 of their mortgages, but anyone with more than that amount to pay off will have to pay in full for the amount above the £200,000 threshold. The interest rate used to work out SMI presently stands at 3.36%. Some politicians and lenders are critical of SMI, but as Chancellor George Osborne confirmed in the last Budget, SMI is here to stay for at least the rest of this year.

SMI is there to help homeowners who are suffering a short-term cash flow crisis, and need to focus on paying for the essentials before covering the cost of mortgage payments. It can help those who’ve suddenly found themselves out of work or who are struggling to get by on a low wage or pensions.

If you’re in a situation where you can’t keep up with payments, it’s worth looking into getting help though such schemes as SMI, as well as through using mortgage calculators and other online tools to see what solutions are out there to solve your payment problems.

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