Thousands refuse to sign up for Tory money-grubbing ‘second mortgage’ loan shark scheme

Many poorer families could be in danger of having their home repossessed as a state-backed benefit is taken away [Image: Alamy Stock Photo].
Ridiculous.

The Conservative government is trying to squeeze money from homeowners on low incomes by replacing a scheme that pays the interest on their mortgage with a loan.

The idea is to continue paying the interest on mortgages, to keep new homeowners from defaulting on their payments while they are in financial difficulties – but to then charge interest on those interest payments.

Interest on interest – bizarre.

The fact is that this is a government loan shark scheme. The people it targets may never be able to pay off the charges they incur, because Tory austerity, economic mismanagement and the effects of the government’s ridiculous Brexit mean no job currently pays enough to lift them out of debt.

It is no wonder, therefore, that the scheme has attracted a pitifully small amount of interest. It seems more than 117,000 of the 124,000 receiving the current benefit would rather default on their mortgages, running the risk of losing their homes.

One has to ask:

Is that the underlying plan? Tories love to get their hands on other people’s property in underhanded ways.

The government has been called on to delay a new “second mortgage” scheme, which replaces a benefit for homeowners on low incomes, after just one in 20 affected households have signed up for it.

From April, the government is axing “support for mortgage interest” (SMI) which helps financially constrained homeowners with their mortgage. It will be replaced with a controversial system where the government offers to loan people the money, which will be repaid later with interest.

However, new figures have shown that just 6,850 households have signed up for the scheme out of the 124,000 currently receiving the SMI benefit, prompting calls for the changeover to be delayed.

Source: Anger as thousands unaware they face a ‘second mortgage’ | Money | The Guardian


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7 Thoughts to “Thousands refuse to sign up for Tory money-grubbing ‘second mortgage’ loan shark scheme”

  1. NMac

    The snide, evil, money-grubbing Tories are at their fraudulent, corrupt tricks yet again.

  2. I’m retired, thus making me, have to, get a lifetime Mortgage! So my wife will have somewhere to live, when I die! We are joint owners, my wife is low payed, thirteen and a half thousand a year, along with my National Low Pension of just over ten thousand a year! Not the National Average that keeps being bandied around of £24.000.00 a year for a single person’s earnings. So much for averages!

  3. Margaret Burton

    After hoping that I could try to do a few hours of ‘Permitted Work’ to cover my mortgage interest, I’ve discovered that when I’m transferred to Universal Credit, any income at all will mean that I lose the loan (I’m on Income Related ESA). If I couldn’t continue to work, I’d then have to wait 39 weeks to be eligible for it…..

  4. rotzeichen

    Poverty is a deliberate economic policy, they want people constantly in debt and locked into a treadmill society that feeds rich Bankers, debt can be sold on in the confetti money world of the City of London.

    While the poor get poorer the rich get richer.

  5. Jenny

    When you rent, your landlord is responsible ( or used to be) for repairs and renovations. When you have mortgage you have to pay for your own repairs and maintenance, something which is never mentioned!

  6. Clutter

    If they default on their mortgages they WILL lose their homes in a few months.

  7. Name cant be blank

    If 117,000 households reject SMI loan and move to housing benefit instead it will cost an extra £585 million per year in housing benefit which is 5 times more than the SMI benefit and a lot of that money will go to private Landlords. SMI loan is Tory scam forcing most vulnerable into debt or out of homes so banks and landlords can profit!

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