Housing and independent living
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SIM changes

BrokenBroken Member Posts: 39 Connected
Once the government introduce the changes in April 2018 pertaining to SIM being classified as a LOAN with added interest (what will the % be of this interest???) is this tantamount to a LIEN on the property????


  • Debbie_ScopeDebbie_Scope Member Posts: 947 Pioneering
    Hi @Broken,

    I've been following this topic since it was announced in the 2015 budget. I had hoped there would be a last minute change but this looks ever more unlikely now.

    The Loans for Mortgage Interest Regulations 2017 were recently laid before Parliament and they will come into effect next April. (There's a simpler document) explaining the changes.)

    The rates of interest on Support for mortgage loans will be based on gilt rates. If a claimant receives help through a loan, the loan will be repayable if/when the claimant goes back to work or when the property is sold. A charge will be placed on the property. If there's no equity left in the property when it's sold and all other charges are repaid, the debt will be written off.

    Support for Mortgage Interest (SMI) is a line of defence in mortgage possession proceedings. I hope that it continues to be and that lenders continue to exercise forbearance.

    I will continue to follow this topic with great interest and if anyone needs any advice about this, please get in touch.

    Best wishes
  • BrokenBroken Member Posts: 39 Connected
    Hi Debbie,
    Thanks for your reply. Unfortunately I have been unable to open "The simpler" document so am still unsure exactly what a "transitional protection for claimants" means. Despite the "asset" component, is the government likely to take into consideration the fact that Buildings insurance premiums HAVE to be in place in order to have a mortgage? Is there any help available for essential maintenance? I feel this is a ploy by the government to "appease" working taxpayers and has many repercussions for the future ..... 
  • Debbie_ScopeDebbie_Scope Member Posts: 947 Pioneering
    Hi @Broken,

    Sorry about the link to the simpler version, it looks like it was removed from the place I found it originally but you can access it here (hopefully).

    The transitional provisions start on page 5 (7.26).

    Let me know if you still can't access the link and I'll try to get you the information in another format.

    Best wishes
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