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NewsSMI funds 'should not be paid direct to tenants'
SMI funds 'should not be paid direct to tenants'
Posted by Emily Swanson
Tenants should not directly receive payments from the government designed to help them stay in their homes.
That is the view of Ben Wilkie, editor at What Mortgage, who believes cash should instead be handed over by the administration to the financier involved in home loan agreements.
Earlier this week (December 6th), the Department for Work and Pensions announced it is to listen to opinions on how its Support for Mortgage Interest (SMI) scheme could be enhanced in the near future.
And while Mr Wilkie indicated the SMI has a solid foundation and principles, it could be improved by making sure the funding is actually used to aid struggling homeowners pay their mortgage rather than any other debt requirements.
"The whole point of SMI is that people don't lose their homes," he added.
The expert therefore recommended that the scheme could be changed to include a penalty on anyone using it before benefitting from property price increases in the future.
09/12/2011 16:35
News category: Property