Support for mortgage interest

Motion Text

That this House notes that the mechanisms of Support for Mortgage Interest were designed at a point in time when both inflation and interest rates were more stable; recognises that many of those in receipt of Support for Mortgage Interest receive significantly less than their required payments and must make up the balance from subsistence benefits; appreciates the challenges inherent in designing a system that is fair to all taxpayers whilst preventing homelessness and poverty; believes that in the current cost of living crisis that the present system is failing to meet these goals; takes particular note in this context of the mechanism for setting the maximum rate payable using the Bank of England average mortgage rate which causes delays in recognising rate increases; further recognises the significant disparity between the generosity of the local housing allowance system to landlords with buy-to-let mortgages and Support for Mortgage Interest which is repayable; and calls on the Government to undertake a review of this system as a matter of urgency.