Mortgage holders struggling to keep up with repayments in the current economic climate could be affected by a review of how a government scheme could be improved.
Ben Wilkie, editor at What Mortgage, claimed the principles behind the Support for Mortgage Interest (SMI) are “good”, but need to be used more directly.
The expert went on to argue the scheme should only be utilised to directly assist those in need rather than to pay off other outstanding debts .
“It is basically cheaper for everyone concerned to have the state helping with mortgage payments than it is for the state to pay for private rented accommodation,” Mr Wilkie commented.
His comments were made after the Department for Work and Pensions published a Call for Evidence to show how SMI may operate for claimants in the future.
Lord Freud, the minister for welfare reform stated the body is committed to supporting homeowners in a bid to allow them to remain in their homes during difficult times.