A new measure to provide extra help for homeowners struggling to pay mortgages after losing their jobs comes into force today.

The measure, announced last year, was introduced by the Government to stem the rising number of repossessions.

The waiting period to qualify for the means-tested benefit has been reduced from 39 to 13 weeks from today – a move brought forward from April.

Others will qualify for help making interest payments after the terms to qualify for such assistance were changed.

More people will now be eligible to receive Support for Mortgage Interest (SMI) after mortgages of up to £200,000 were included, double the previous limit and £30,000 higher than the previously planned increase.

Work and pensions secretary James Purnell told Sky News:”It comes as part of a raft of measures aimed at helping people stay in their homes.

“If there are two earners in the household and one of them loses their job, being able to renegotiate your payments down for two years, you can get through this difficult period.”

Gordon Brown on Sunday promised to help people who face losing their homes in the recession, and conceded the downturn could last two years.

The SMI scheme provides mortgage relief to those who are already receiving a means tested benefit, such as income support, pension credit or income-based jobseekers allowance.

The Council of Mortgage Lenders (CML) estimates that the number of repossessions will soar to 75,000 next year as rising unemployment leaves growing numbers unable to meet interest payments.

A second scheme is being finalised to allow householders to defer a proportion of their mortgage interest payments for up to two years.

This entry was posted on Monday, January 5th, 2009 at 9:03 am and is filed under News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.