Support for mortgage interest

laxy

Hi has anyone applied for smi loan and is there a catch, will i regret it?

Ross_Alumni

Hello @laxy, I hope you are well.

I haven't applied for it personally, but I always think it's good to canvas the thoughts of others, and do your own research, when considering something like SMI. You can find a page here from the Money Advice Service which contains further information, and hopefully we will have members with experience of applying for it.

leeCal

As above,
https://www.gov.uk/support-for-mortgage-interest

MarkIngleton

They also charge  interest  on the money they pay out plus money  back  

laxy

So are you saying interest is double when u pay back 

laxy

@woodbine I am eligible for it. But Im not understanding much. Is there a catch and if I do it temporary for couple of years. Am I paying low interest than banks interest. I know it's a help scheme but obviously nothing is free . Am I better of with bank or is it ok to do smi ??? I thought some one must have taken smi so I can see they reviews

MarkIngleton

As I understand  it they pay the bank interest of your mortgage until you sing off . Them they charge you interest  on the interest they pay  .  Ask your bank if not sure  I found it better not to take  it if you can manage  as I have a long term left on my mortgage. And it is low payment  back to the bank . Ask bank for a fix payment  on mortgage  it could  help . 

laxy

@MarkIngleton
Thank you for your reply I understood . I going to keep away from it.

janer1967

Hi 

I had trouble paying my mortgage and just rang the lender and they sorted out reduced payments even nil payments once my property was put on the market 

leeCal

When I had trouble paying my mortgage my bank told me if I missed three months they’d start repossession proceedings! I’d never missed a payment. That’s empathy right there! 

janer1967

@leeCal that's awful guess it's the luck of the draw who you borrow off 

Mine were so helpful 

leeCal

I shouldn’t t say publicly @janer1967 but it was a bank. 

Luckily i had pip and esa and managed to keep paying and then eventually I did qualify for the SMI before it was a loan. The smi then was a real life saver. 

laxy

@leeCal I completely understand I have ESA and pip which helps me financially. My bank wasn't helpful at all despite my health condition Crohn's  which let me down and waiting for emergency surgery for stoma .bank didn't care took me to court repossession of my home was given 28 days judge said " well it is banks money and they Wana it. Look somewhere else to live " that's was his words. Didnt care I had a three year old son .Luckily I had private pension and I took I'll health pension to save my home.  Now I'm eligible for smi i Wana take it but scared that I may end up over paying interest amount ......

laxy

Now cause of all missed payments in 2020  no will give me mortgage. I'm up to date with payments since laster December but my bank is charging alot more after my fix is finished April end. The new fix is much more than now. Switching lender is out of question as everyone is saying it's hard cause of missed payments. Smi load is last option but scared  

laxy

Of I take smi which interest is 0.3%now and their rates change twice a year but is it good to take ? 

leeCal

thats a nasty experience.
Have you read all the details @laxy? If you apply for it and you qualify they will send you an information pack which you can read through very carefully before making a final decision. 
Best wishes.