Throughout the recession, the Government made available several financial measures for home owners who lost their jobs but now, with the economy picking up, some of this support is being reduced. One such payment is Support for Mortgage Interest, which is paid to those on income-related benefits and is being cut by 2.3%.
Support for Mortgage Interest is paid in full every month regardless of how much a borrower actually pays on to their lender. It is this potential loophole that has prompted the Government to announce that it is cutting back the support to the average BoE rate of just 3.75 per cent from October 1. The cut will leave those who rely on it up to £202 worse off a month and has been blasted by charities as a move that will increase repossession order notices across the UK.
