MPs have called on the Government to work with lenders to stop people losing their homes after a cut in the income support for mortgage interest scheme.
Chancellor George Osborne announced in the June Budget that ISMI, which provides support for borrowers in difficulty, would be paid at the level of the Bank of England’s average mortgage rate. This brought a cut in payments from 6.08 per cent to 3.63 per cent.
An early day motion has been signed by 26 MPs, including Treasury select committee members Andy Love and John Mann, calling on the Government to find “an urgent solution” for people facing repossession.
The motion, proposed by Labour MP Karl Turner, says: “These reforms will affect 225,000 people, including disabled people and pensioners.
“We are concerned that the 40 per cent reduction was implemented before securing a reduction in rates with lenders and as a result many people face a real threat of eviction. We call on the Government to work with len-ders quickly to find an urgent solution to this situation and help stop vulnerable people from losing their homes.”