Since 6th April 2018 key changes have affected the welfare and benefit system available to individuals in the UK. Before the change Support for Mortgage Interest (SMI) could be claimed by homeowners who are claiming a qualifying benefit such as income support, job seekers allowance, employment support allowance, universal credit or pension credit, and didn’t need to be repaid.
The new changes to SMI now say the payment will now longer be paid as a benefit, but as a loan secured on the property, to which interest is added and repayable on sale or transfer of the property.
This change emphasises the importance of discussing Income Protection with your clients. Help your clients take control by putting income protection in place to cover them should they become unable to work due to sickness or accident.