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Alli said: Hello. I’m new to this and would like to know if people are aware of the impact of SMI loan from April 2018. I am currently taking it to parliament and in conversation with MP Secretary of State. As there are 2 BIG concerns I see. Maybe more! As no one really knows what the rules are when you call SMI. If they are paying your interest on your mortgage they are getting you into seriouse debt. As the monthly interest you will need to pay back on the interest of the loan. ( yes, interest loan to pay interest is not permitted by banks). They say you don’t need to pay any back, until you sell your property or die. Well if you make no payments like they say and leave it. Every month you are charged interest on the entire lot. So could have no equity left to leave family. In fact they will own the property. Only way I see a solution is to see if you can pay monthly the interest they are charging you on the loan! You still have to pay the original loan interest too. So I worked out if I can pay my own I am £40,000 better off and still own my home. If over 55 and have equity in property you will be better doing this. I am having to sell my home now as I cannot afford the interest on my mortgage and the SMI loan will put me into serious debt and eventually own 100% of my home if no payment made. Until end of mortgage. As after mortgage ends the SMI loan will be charging interest every month. I shall update you on what Parliament say.
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