As part of the cuts to be announced by George Osborne in the budget the Council of Mortgage Lenders (CML) has said that any plans to cut Income Support for Mortgage Interest and Mortgage Rescue (ISMI) will have negative repercussions for struggling home-owners.
The Chancellor is expected to announce in his first Budget speech later this month, that ISMI, which provides support for borrowers in difficulty, including the sell and rent back style mortgage rescue, would be cut due to the deficit. Many think it will be paid at the level of the Bank of England’s average mortgage rate of 3.67% instead of the existing rate of 6.08%.
