Benefit Help with Mortgage Costs

cc_woodleywonderworks@flickrThe Department of Work and Pensions (DWP) will normally pay some of the interest on the mortgage of your own home if you are claiming:

  • Income Support

  • Job Seekers Allowance (income based) or

  • Employment Support Allowance (income based)

Some changes have been made to the rules to help during the “credit crunch “.  The temporary rules are:

For mortgages taken out from 2/10/1995:

  • Mortgage interest is paid at the Government set rate and not the rate you actually pay, unless the interest rate is less than 5% in which case actual interest rate will be paid

  • All mortgage interest rates are paid by DWP direct to the mortgage lender

  • Interest payments can only be made on the first £100,000 of your mortgage (unless added interest is a direct result of adaptations to your home due to someone’s disability)

  • No help is available for capital payments or endowment payments on your mortgage, or with interest on any arrears incurred before the waiting period for your claim

  • You will not get help for the first 13 weeks of your claim (temporary rules - this is usually 39 weeks waiting period) after this time you will get full allowed costs.

Different Rules for mortgages taken out before 2/10/1995:

  • If this applies to you, then you have to wait for a period of 8 weeks before you are eligible for help with your mortgage interest payments

  • You will then be entitled to 50% of your mortgage interest for the next 18 weeks

  • After 18 weeks you then get 100% of the allowed mortgage interest paid in full.

Special Rules:

DWP will pay your mortgage interest in full with no waiting time if:-

  • You or your partner are over 60

  • You are not signing on because you look after or are caring for someone who is sick/disabled

  • You are a prisoner on remand

  • You are a single parent (have a child/children living with you) through either:
    • Bereavement or
    • Abandonment

 

For further information visit www.direct.gov.uk

For further support and advice contact your local Citizens Advice Bureau or advice centre

 

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