Banking body: Reform puts homes at risk

15th December 2017

UK Finance has warned that a number of households will be at risk of losing their homes due to the decision to replace the support for mortgage interest (SMI) benefit with a Government loan, saying the issue will be exacerbated by the switch to universal credit. The combination of both factors mean it's “inevitable” that more of the families who fall behind on their mortgages will be evicted, the banking trade body has said. The UK Finance report, Challenges for our Home Ownership Safety Net , says that without SMI there is little incentive for lenders not to evict struggling borrowers. It adds that, for the most part, “owner occupiers who are unable to negotiate a means of catching up with their payments are expected to sell and what government assistance they continue to receive is within the rental market”.

The Mail on Sunday (10/12/2017)