poppet2 Posted November 3, 2012 Share Posted November 3, 2012 Mortgage interest payments don't take into account number of bedrooms. http://www.sheffieldforum.co.uk/showthread.php?t=1067332&highlight=smi+bedroom It has affected private tenants for years though. Housing benefit is only paid for the number of rooms you need. If you have too many rooms for your needs, you get a reduced rate. It is only next year this same ruling will now apply to all Council and Housing Assoc. tenants. Link to comment Share on other sites More sharing options...
chem1st Posted November 3, 2012 Share Posted November 3, 2012 Does anyone know how long the DWP will pay the interest on people's mortgage under the scheme that was set up by Gordon Brown? The scheme has been around a lot longer than that, SMI under it's various names is older than me! Gordon Brown just tinkered with it. Many people can claim SMI FOR LIFE! In 2009 Gordon Brown brought in a 2 year time limit for claiming SMI (for those on JSA). There is no limit on the amounts of times you can claim it for 2 years (bar the period inbetween claims and time it takes to reach pension age) http://www.dwp.gov.uk/docs/support-for-mortgage-interest-call-for-evidence.pdf Annex A: Brief history of support for mortgage interest Support for mortgage interest is paid as part of Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance and Pension Credit. Prior to 1988 amounts for interest payments on mortgages and certain other housing costs for homeowners were allowed as part of the Supplementary Benefit scheme. In 1988 Income Support replaced Supplementary Benefit. Payments were allowed towards eligible mortgage interest for loans taken out to purchase the property and certain loans for repairs and improvements to the home to make it fit for habitation and some other housing costs. Mortgage interest was paid at 50% for first 15 weeks and at 100% from week 16. Allowable interest was calculated using claimants’ actual rates. In May 1992 the Mortgage Interest Direct Scheme (MID) was introduced. The SMI element is deducted from benefit payments and transferred (on a 4 weekly basis) direct to the claimant’s mortgage lender. On 2 August 1993 upper limits on loans were introduced: • £150,000 for loans taken out between 2 August 1993 and 11April 1994; • £125,000 for loans taken out after 10 April 1994; • New upper limit of £100,000 from 9 April 1995. From 2 October 1995 waiting periods were introduced before SMI could be paid. Generally 39 weeks for loans taken out after 2 October 1995, with a shorter waiting period for some vulnerable claimants if they met certain conditions (50% of eligible loans met after 8 weeks; 100% after 26 weeks). No waiting period for claimants over 60. Paying the actual interest rate resulted in high levels of overpayments, as claimants routinely failed to report decreases in their interest rates. The decision was taken to use a standard interest rate (SIR) from 2 October 1995 to calculate SMI payments for all claimants – irrespective of their actual interest rate. The SIR was based on the average rates charged by the top 23 building societies. In October 2003 Pension Credit was introduced. There is no waiting period for SMI in Pension Credit. From 28 November 2004 a new method of calculating the standard interest rate was introduced. This was calculated by reference to the Bank of England base rate plus an additional 1.58%. 24 We basically have a form of socialism for landlords, landowners and banks, this is not the USA poppet, property here is king, it is sacrosanct, it is of more worth than human life. Affordable housing is not allowed, rents must rise, the rentiers must profit. Link to comment Share on other sites More sharing options...
poppet2 Posted November 3, 2012 Share Posted November 3, 2012 We basically have a form of socialism for landlords, landowners and banks, this is not the USA poppet, property here is king, it is sacrosanct, it is of more worth than human life. Affordable housing is not allowed, rents must rise, the rentiers must profit. I agree. It is only housing which is propping this country up, which is why the interest rates are artificially low. The Govt should put a charge on landlords who leave houses empty and shops which they refuse to negotiate a cheaper rent on, leaving the high streets desolate. Link to comment Share on other sites More sharing options...
chem1st Posted November 3, 2012 Share Posted November 3, 2012 I agree. It is only housing which is propping this country up, which is why the interest rates are artificially low. The Govt should put a charge on landlords who leave houses empty and shops which they refuse to negotiate a cheaper rent on, leaving the high streets desolate. The government is run for the benefit of landlords though and a lot of the MPs are landlords too. Some rent out their taxpayer funded homes! http://www.guardian.co.uk/commentisfree/2012/nov/02/big-beasts-change-banking Repurposing the role of banks – for instance, away from their grotesque interest in property loans, up from 5% to 18% of GDP in the decade from 2000 – towards the real economy, should be a no-brainer. But the big beasts lining up to take on this fight are strangely few in number. A lot of our GDP is property related. 8% of our GDP is purely fictitious - they call it 'imputed rents'. It is the rent homeowners would pay to themselves! (Up from 6% of our GDP in 2007). - A lot of our economic 'growth' has actually come from the rise in imputed rents which is a purely fictitious number! The majority of rent paid in this country involves some form of housing benefit subsidy too! Link to comment Share on other sites More sharing options...
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