Support for Mortgage Interest etc. (Security for Loans) Bill - Call for Evidence and Views

Overview

The Support for Mortgage Interest etc. (Security for Loans) Bill was introduced to the Assembly by the Minister for Communities on 8 November 2021.  The Bill has now reached Committee Stage and the Committee would welcome your views on the Bill.

The stated objective of this Bill is to protect owner-occupiers receiving certain income-related benefits from the threat of repossession. Homeowners, who are in receipt of certain income-related benefits may be able to get help towards mortgage interest payments. This is called Support for Mortgage Interest (SMI). SMI is a loan, which is repaid with interest when the property is sold or ownership is transferred.

Background to the Bill

• Read the Bill as introduced
• Read the Explanatory and Financial Memorandum as Introduced
• Read the Department for Communities screening paper: www.communities-ni.gov.uk/publications/statutory-charge-loans-loans-mortgage-interest-bill-screening
• Read information on SMI on NI Direct website: www.nidirect.gov.uk/articles/support-mortgage-interest

Why your views matter

A Departmental Consultation was not conducted in relation to this Bill – its reason being that loan recipients have been notified of the possibility of a loan being secured by a Statutory Charge as it is contained in the ‘Support for Mortgage Interest loan agreement’. In the absence of a consultation, the Committee is therefore especially keen to hear your views on the Bill and the proposed regulations.

Particularly from those individuals or organisations who have experience of current Statutory Charges; related advantages and disadvantages of this process, including the removing or replacing a charge in the case of unregistered properties, and any matters pertaining to difficulties caused by unregistered properties in relation to SMI loans or the repayment of the SMI loan.

This Bill contains two clauses; the first clause allows regulations to enforce a charge on a property which has a Support for Mortgage Interest loan against it and requires these charges to be registered in the Statutory Charge Register. The second clause addresses the starting date for the Bill and its short title

Send your views to the committee using this email address Committee.Communities@niassembly.gov.uk