Reposession ‘ticking timebomb’ for homeowners
● HOMEOWNERS struggling to pay their mortgage could be facing a repossession ‘ticking timebomb’ after a support scheme was scrapped, east Runcorn and mid-Cheshire MP Mike Amesbury has said.
Mr Amesbury said he has been contacted by elderly constituents who are in fear of the changes, due to come into effect in April.
Support For Mortgage Interest (SMI) is a benefit that helps with mortgage costs when home owners are not working.
It is now changing to a loan system secured against the property.
A spokesman for Mr Amesbury’s office said the changes were introduced as part of George Osborne’s Welfare Reform And Work Bill from July 2015.
Age UK Cheshire has estimated that approximately 124,000 households will be affected and almost half of these are pensioner households, which Mr Amesbury said are those least likely to be able to find alternatives to taking the loan.
The change from benefits to a loan will not be automatic, and Age UK has warned that claimants must do something to prevent repossession as they will still be liable for their mortgage interest payments going forward after April when their benefit stops.
Mr Amesbury, Labour, has raised a parliamentary question on the issue but is also urging those in receipt of SMI in to seek advice.
He said: “These changes haven’t been widely reported or advertised so many people who are affected may only now just be finding out about it after they receive letters through their door.
“Age UK recommend taking independent financial advice, beginning with CAB (Citizens Advice Bureau) or Money Advice Service, rather than paid-for independent financial advisors.
“They also say it is possible that there are viable alternatives to the DWP (Department For Work And Pensions) loan such as credit unions or an alternative lower interest loan if eligible.
“Any older residents who require help to complete paperwork or apply digitally, once they have made their decision, can also call into Age UK’s information and advice offices in Hartford or Chester where they have advisers who will be more than happy to assist.”
Mr Amesbury’s Weaver Vale constituency encompasses most of east Runcorn, Frodsham, Helsby, Daresbury and Northwich.