More than half of claimants to decline new mortgage interest loan
Wednesday 4th April 2018
More than half of claimants say they will decline the offer a new loan towards their mortgage interest costs.
This April, the government is scrapping the current system of benefit payments towards mortgage interest and replacing it with a new system of loans. These loans need to be repaid with interest when a property is eventually sold or transferred to someone else.
The government have been trying to contact everyone who currently receives support with mortgage interest to tell them that their benefit payments towards mortgage interest will be stopping and to ask whether they wish to sign up to the new system of loans instead.
New DWP statistics show that so far 54,000 out of the 90,000 people receiving support with mortgage interest have been successfully contacted by telephone. Of these 54,000 claimants:
- Around 3,000 (24 per cent) have said they intend to take up the offer of loan payments
- 14,000 (25 per cent) are undecided
- 27,000 (51 per cent) have indicated that they will decline the offer of a loan
To find out more about what these changes to support with mortgage interest mean, listen to one of our advisers Jill, explain how the new system of loans will work or read our factsheet on the changes [PDF].
If you have more questions about changes to support with mortgage interest or any other benefits issue, call our free call our free helpline.