Banks call for overhaul of mortgage support

Banks and building societies are calling on ministers to extend help for those struggling to pay their mortgage owing to the financial effects of the coronavirus. Support for Mortgage Interest (SMI) is a loan available to some people in the UK on benefits, which is usually repaid when their property is sold. Applicants have to wait for 39 weeks after losing their job before they are able to make a claim. Banks want the wait cut to 13 weeks, as happened after the financial crisis. The Government said that anyone struggling to pay their mortgage should first go to their lender, who has a duty to support them. However, Charles Roe, director of UK Finance, said: "The wait time and eligibility criteria for Support for Mortgage Interest is preventing much-needed help going to struggling homeowners when they need it most - before their financial circumstances get worse and mortgage arrears start building up".

BBC News (28/05/2021) The Daily Telegraph (29/05/2021)