View more on these topics

AS 2012: SMI scheme extended until 2015

Budget group shot 2012 480

The Support for Mortgage Interest scheme, due to expire next month, has been extended until 2015/16.

The extension of the scheme, announced in today’s Autumn Statement, will cost an extra £10m in 2012/13, followed by £95m in 2013/14 and £90m in 2014/15.

The Autumn Statement report states: “Temporary changes to SMI are extended until 2015/16 for working age SMI claims. The waiting period will remain at 13 weeks and the working-age capital limit will remain at £200,000 until 31 March 2015.”

SMI was previously calculated at 6.08 per cent, but in the emergency 2010 Budget it was cut by 40 per cent. Since October it has been calculated at the Bank of England’s average mortgage rate, currently 3.63 per cent.

Council of Mortgage Lenders director general Paul Smee says: “Today’s announcement provides a welcome extension of support for homeowners currently receiving income related benefits, as well as helping lenders to extend forbearance to those waiting to qualify.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com