Martin Lewis, Money Saving Expert, 45, warned viewers that anyone on Support for Mortgage Interest, or SMI, will need to sign a vital form to maintain support after SMI payments change on April 6.
“Warning – do you receive support for your mortgage interest payments? Act now or they’ll be stopped,” he said.
“Support for Mortgage Interest (SMI) is paid to around 124,000 households on certain benefits to cover their mortgage interest. On 6 April it will stop being a benefit and become a low interest loan repaid when you sell your house, transfer it or die.
Yet even if you get the payments now, they will stop, possibly within weeks, if you don’t sign up to a loan agreement form.
Most people should’ve received letters from the Government. If not you can get one by calling 0800 731 0469 if you’re over the state pension age, or 0800 169 0310 if you’re working age. You will also receive a phone call from Serco (company working on behalf of DWP) to explain your options and how the loan will work.
“Then if you agree it will send you a loan agreement which you must sign and send back. Many people will understandably be unhappy with the shift from a benefit to a loan.
“Yet that’s a political issue. Even if you’re angry, don’t cut off your nose to spite your face.
“From a financial perspective, if you don’t have any other way to find this money, and you need it for your mortgage repayments, then make sure you sign the forms for the loan, or within weeks you’ll stop receiving anything.
“This could leave you unable to pay your mortgage and ultimately risks repossession.”
He advised those buying stamps in bulk to make sure they buy their stamps before next week.
“On Monday (26 March) the price of a first and second class letter size stamps increase 2p to 67p and 58p.
“For larger letters it’s up 3p to £1.01 and 79p. Yet as stamps just say 1st or 2nd on them (Or 1st or 2nd large for the bigger ones) if you buy them now they are valid in perpetuity after.
“So while it’s only pennies, if you’re going to send, even a big batch of Christmas cards, you may as well stock up now.”
Earlier this week, Martin Lewis spoke about council tax bands and discounts you might be entitled to on This Morning
He said: “Are you entitled to a discount? This could be the single person’s discount of 25 per cent which applies where there’s only one qualifying adult in the property (eg one adult with children, or with full-time students).
“Those with a serious mental impairment such as Alzheimer’s and Parkinson’s and who are eligible for certain benefits may also be disregarded for council tax purposes.
“Sadly as this is little known, it’s worth researching. There can also be council tax discounts for those on pension credit.”
