Borrowers with Disability Face Repossession Threat

The government’s decision to cut mortgage benefits is supposed to affect thousands of disabled people in UK.

At present the government provides monthly help for the disabled persons through Support for Mortgage Interest (SMI) at the rate of 6.08%. From October onwards, it will be replaced by a different low rate set according to the rate of monthly average mortgage interest fixed by the Bank of England.

The SMI beneficiaries include first time buyers and other existing buyers who may have suffered some physical or mental disability. Lenders consider the potential SMI income when deciding to grant loans to the disabled.

Mr. Neil Coyne of Disability Alliance, a charity for the disabled, said that it would take up the matter with the government. He said that finding an appropriately accessible property was hard to the disabled and their reduced earning capacity still makes the matter worse.

The council’s spending cuts are another major set backs to the disabled peoples. At present the homeowners are supposed to install ramps or stair lifts when a household member becomes disabled. The home owners are allowed grants for the purpose on a discretionary basis. When the authorities cut these facility grants, additional financial burden is suffered by the desperate families.

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