Government Regulations Will Not Help All Homeowners With Big Mortgage If They Lose Their Jobs

Government Regulations Will Not Help All Homeowners With Big Mortgage If They Lose Their Jobs




The Department of Working Pensions (DWP) has announced changes to Income sustain for Mortgage Interest (ISMI). The Department of Working Pensions unveiled a package to assist venerable homeowners to meet their mortgage interest payments should they lose their jobs or become unemployed.

The current situation is that if you should lose your job you will not receive any government sustain to pay your mortgage for the first 39 weeks or 9 months of your unemployment. The DWP will then only provide benefits for the monthly interest payment for the first £100,000 of your mortgage.

The changes announced by Department of Working Pensions (DWP) come into force from next April 2009 when the rules will change and Income sustain for Mortgage Interest (ISMI) assistance will be paid on the first £175,000 of the mortgage and will you will be able to claim after just 13 weeks of unemployment.

This will assistance people who may lose their jobs by unemployment or sickness and this is welcome news. Homeowners with mortgages up to £175,000 are now better protected after 13 weeks or 3 months.

Unfortunately, homeowners in the south of England where house prices are significantly more expensive and other homeowners with mortgages that are greater than £175,000 are likely to find themselves just as venerable as they were before this announcement, so this is not great news for everybody, there are winners and losers here.

It is important that you protect your family and your home with the appropriate Mortgage Payment Insurance policy; should you lose your job or become unemployed or have an Accident or long term sickness and you are unable to work.




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