Help with mortgage interest repayments
Who gets it?If you've got a mortgage and you're on income-based Job Seekers Allowance, Income Support or Pension Credit, you may be able to get help with your interest payments, although unless you are 60 or over, there is usually a waiting period during which you won't get any help. How much is it?You can only get help with interest payments (not repayment of capital or contributions to a linked PEP, endowment or insurance policy) and the amount is based on a standard average interest rate (which may not be the same as the interest you are paying). If you took out your mortgage before 2nd October 1995, you will get no help for eight weeks, half of the allowable interest for the next 18 weeks and then all the allowable interest after that. If you took out your mortgage after 1st October 1995, you will get no help for 39 weeks and then all the allowable interest from the 40th week of your claim. If you claim benefit because of the death of your partner or because your partner has left you and you have at least one child under 16, you are treated as if you took out your mortgage before 2nd October 1995. There are limits on the size of the loan which you can get help for, and the help may be reduced if other adults (not your partner) live with you. You cannot usually get any help if you took out your loan whilst you are on benefits. How do I claim?When you claim income-based JSA or Income Support, your JobCentre Plus office will give you a form about your housing costs. You will need to send the form onto your mortgage lender who should complete the details and return it to the DWP. Once housing costs are payable, the money will usually be paid directly to your mortgage lender. Anything else?Tell your mortgage lender as soon as you get into difficulties with your mortgage. If you are unable to meet your repayments you may be able to negotiate a temporary agreement for reduced repayments (e.g. during your maternity leave), and some mortgage agreements allow a few months 'repayment holiday' once during the life of the mortgage. If you have Mortgage Protection Insurance contact your insurer immediately. For example, some insurance policies will pay out if you are receiving JSA or Income Support, but not if you are only receiving Statutory Maternity Pay or Maternity Allowance, so check carefully. This information is accurate as at April 2007. It is important always to get up-to-date information. For details of publications, leaflets and information packs and training courses, contact Working Families. You can also call our helpline for further advice. Working Families |