Support for mortgage interest
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laxy
Community member Posts: 38 Connected
Hi has anyone applied for smi loan and is there a catch, will i regret it?
Comments
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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.Online Community CoordinatorConcerned about another member's safety or wellbeing? Flag your concerns with us.
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SMI is now not a benefit as such but a loan that at some point in the future will have to be repaid.
https://www.moneyadviceservice.org.uk/en/articles/support-for-mortgage-interest
2024 The year of the general election...the time for change is coming 💡 -
“This is my simple religion. No need for temples. No need for complicated philosophy. Your own mind, your own heart is the temple. Your philosophy is simple kindness.”
― Dalai Lama XIV -
They also charge interest on the money they pay out plus money back
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So are you saying interest is double when u pay back
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No you pay interest on the money you borrow for SMI, you also have to wait 39 weeks before you can apply for it.2024 The year of the general election...the time for change is coming 💡
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@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
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Since SMI changed from a benefit to a loan scheme many people have done their best to avoid it, as I am not qualified to give financial advice and don't know any of your personal circumstances the only advice i can offer is 1) read the link that leecal provided for you 2) talk to your lender.
Hope that helps?2024 The year of the general election...the time for change is coming 💡 -
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 .
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As I said it's impossible to give anyone financial advice unless you know all their circumstances and I wouldn't expect anyone to want to make those public.2024 The year of the general election...the time for change is coming 💡
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@MarkIngleton
Thank you for your reply I understood . I going to keep away from it. -
In general if you are struggling to pay your mortgage you can ask the bank to put you on "interest only" this is typically done for 6 months.2024 The year of the general election...the time for change is coming 💡
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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 -
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!
“This is my simple religion. No need for temples. No need for complicated philosophy. Your own mind, your own heart is the temple. Your philosophy is simple kindness.”
― Dalai Lama XIV -
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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.“This is my simple religion. No need for temples. No need for complicated philosophy. Your own mind, your own heart is the temple. Your philosophy is simple kindness.”
― Dalai Lama XIV -
@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 ......
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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
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Of I take smi which interest is 0.3%now and their rates change twice a year but is it good to take ?
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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.“This is my simple religion. No need for temples. No need for complicated philosophy. Your own mind, your own heart is the temple. Your philosophy is simple kindness.”
― Dalai Lama XIV
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