Call to help homeowners at risk of losing jobs

More must be done to prevent homeowners who lose their job during the coronavirus crisis from losing the roof over their head, according to a think tank.

T h e C e nt re f o r Po l i c y Studies (CPS) warned that, as the furlough scheme winds down and mortgage holiday arrangements with lenders also end, many people could risk losing their home.

It argued that, even with the new Job Support Scheme – designed to protect viable job s i n bu s i n e s s e s f ac i n g lower demand than normal – many people could struggle to pay their mortgages without reforms to the other support available.

Its report, supported by the Joseph Rowntree Foundation (JRF), argues that the Sup p o r t fo r M o r tga ge I nterest (SMI) scheme needs u rge nt re fo r m to sup p o rt low-income homeowners through the crisis.

The scheme offers homeowners help with their mortgage in the form of a loan, which recipients need to repay with interest when they sell or transfer ownership of their property.

The CPS is proposing that a nine-month waiting period for SMI should be abolished and the first three months of it should be paid as a grant, not a loan.

James Heywood, CPS head of welfare and opportunities, said: "The Support for Mortgage Interest Scheme is going to be vital for ensuring people losing their jobs do not also lose their homes before they manage to get back to work.

"The Government needs to act now to make the nece s s a r y c h a n ge s s o p e o p l e can move straight on to SMI when their mortgage holiday runs out or when they become unemployed.”