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[MSE Dan]

This threads specifically for discussing the Support for Mortgage Interest benefit, available to homeowners struggling to repay the mortgage.

Read the Support for Mortgage Interest section
of the full Mortgage Arrears Help Guide

Click reply to discuss this.

If you want to discuss a different aspect of mortgage arrears help, jump to the Homeowner Mortgage Support Scheme, Mortgage Rescue or General Mortgage Arrears Help threads.

[Roger Wilco]

This new support package is very good but there is quite some unfairness about who is eligible.

Work and Pensions Secretary James Purnell said: "We have changed the rules to make sure even more people can get help with their mortgage payments if they lose their job. We have brought in changes as quickly as possible so people don't have to wait too long for this support. Every time someone loses their job it is a personal tragedy."

The 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 new lower time limit will be available to those who have already applied under the old rules.

This hasn't happened I was entitled to Mortgage Interest support from the 3rd January 2009 having waited 39 weeks and am only entitled to support of up to £100,000 mortgage interest. 2 DAYS later from 5th January 2009 the rules change so people who have been unemployed 13 weeks can have mortgage interest support up to £200,000. I have complained to the DWP but they say it's the rules which differs from their Minister's statement and it has to go to appeal which could take months.


I lost my job last April and accepted that the 39 week rule was in place. This means that effective from 3rd January 2009 I would be entitled to mortgage interest support. Since losing my job and claiming Job Seekers Allowance I have had to cash in part of my pension and borrow more money to continue to be able to pay my mortgage which you would agree is a priority. Cashing in part of my pension and getting further into debt has greatly affected me now and will do so in the future.

The fairest solution to me would be to compensate me back for the monies I have paid in mortgage interest for the last 26 weeks (this being the difference between 13 weeks and the 39 weeks). I can then use this to pay back some of the monies borrowed to pay my mortgage.

[pw1]

The government has recently changed the rules regarding payment of mortgage interest and has increased the amount of loan covered from £100,000 to £200,000. Am I right that for those who were claiming income support before the changes came in the new rate does not apply and that they are still limited to £100,000.

[Roger Wilco]

PW1

That's what I have been told and it seems grossly unfair. I have appealed the decision and now have to wait months possibly for the Appeals Tribunal to rule.

[mel34]

Hi. I have just joined and read about the mortgage help payable after you start signing on. Does anyone know if this is live yet and how to apply? I have just spoken to my mortgage lender and was told the decision hasnt been finalised yet?

Thanks

Mel

Originally Posted by Roger Wilco

This new support package is very good but there is quite some unfairness about who is eligible.

Work and Pensions Secretary James Purnell said: "We have changed the rules to make sure even more people can get help with their mortgage payments if they lose their job. We have brought in changes as quickly as possible so people don't have to wait too long for this support. Every time someone loses their job it is a personal tragedy."

The 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 new lower time limit will be available to those who have already applied under the old rules.

This hasn't happened I was entitled to Mortgage Interest support from the 3rd January 2009 having waited 39 weeks and am only entitled to support of up to £100,000 mortgage interest. 2 DAYS later from 5th January 2009 the rules change so people who have been unemployed 13 weeks can have mortgage interest support up to £200,000. I have complained to the DWP but they say it's the rules which differs from their Minister's statement and it has to go to appeal which could take months.


I lost my job last April and accepted that the 39 week rule was in place. This means that effective from 3rd January 2009 I would be entitled to mortgage interest support. Since losing my job and claiming Job Seekers Allowance I have had to cash in part of my pension and borrow more money to continue to be able to pay my mortgage which you would agree is a priority. Cashing in part of my pension and getting further into debt has greatly affected me now and will do so in the future.

The fairest solution to me would be to compensate me back for the monies I have paid in mortgage interest for the last 26 weeks (this being the difference between 13 weeks and the 39 weeks). I can then use this to pay back some of the monies borrowed to pay my mortgage.

[mumofjusttwo]

Hi. If my DH has no saving but I have £20k of savings and the mortgage is joint does that me that we would not be able to claim this?

Thanks

[daveymike]

Originally Posted by pw1

The government has recently changed the rules regarding payment of mortgage interest and has increased the amount of loan covered from £100,000 to £200,000. Am I right that for those who were claiming income support before the changes came in the new rate does not apply and that they are still limited to £100,000.

Yes - I've been getting help at the maximum £100,000 for nearly 2 years, on an interest-only mortgage of £200,000. Advice agencies I contacted agreed it unfair that current claimants are being discriminated against by not being eligible for the extra help. One suggested I write to my local MP - which I did and he is raising the issue with Sec. of State. Suggest you do the same. DWP have been known to change rules under pressure from advice agencies over anomolies in a piece of legislation.

[churchills2]

What can I say.. I dont have Mortgage payment protection as I dont believe its worth the paper its printed and this is my personal opinion... and then I was made redundant from my job. Mortgage protection if I had it would cover the mortgage but not the rest of my bills so I got myself another job.... just to be finished up a few weeks later under the excuse of "you work is not up to standard" as they relocated to another part of the country employing cheaper foriegn labour so my morgage protection wouldnt be usable, however, with regards to the government help, I dont see why the government cant pay the mortgage. My mortgage is appox £430 a month which is a lot but not to much but in reality the government wont pay my mortgage, I get my house repossesed and then Im homeless and find a private landlord who charges me £550 a month rent and I pass that onto the government who say "yes thats fine we will pay that as your on benefits" Why dont the government say "well ok you have a 3 bedroom house and we will allow you £450 a month as if its the same as a private landlord" but if you have a mortgage of say £700 then the government should say "well were only prepared to pay £500 and the rest you have to pay for yourselves" and have a 12 month cap on this so no-one can buy a house for £300k and 'lose' thier job and make the government py the rest. This opinion should be useful, stop peoples houses being repossesed and help people back to work and not be abused by dodgy landlords upping the rent so the government pay it and stopping people from taking work as they wont be able to afford to sign of with thier £600 a month rent... would you. Give it some though!!!

[zappster1966]

We keep getting told that issues such as this are best discussed elsewhere.

So why has this thread landed on the benefits board ????

Incidentally, help with mortgage interest kicks in from Day One on Pension Credit, not from 13 weeks, despite what the main article says.

[credit crunch victim]

Originally Posted by churchills2

What can I say.. I dont have Mortgage payment protection as I dont believe its worth the paper its printed and this is my personal opinion... and then I was made redundant from my job. Mortgage protection if I had it would cover the mortgage but not the rest of my bills so I got myself another job.... just to be finished up a few weeks later under the excuse of "you work is not up to standard" as they relocated to another part of the country employing cheaper foriegn labour so my morgage protection wouldnt be usable, however, with regards to the government help, I dont see why the government cant pay the mortgage. My mortgage is appox £430 a month which is a lot but not to much but in reality the government wont pay my mortgage, I get my house repossesed and then Im homeless and find a private landlord who charges me £550 a month rent and I pass that onto the government who say "yes thats fine we will pay that as your on benefits" Why dont the government say "well ok you have a 3 bedroom house and we will allow you £450 a month as if its the same as a private landlord" but if you have a mortgage of say £700 then the government should say "well were only prepared to pay £500 and the rest you have to pay for yourselves" and have a 12 month cap on this so no-one can buy a house for £300k and 'lose' thier job and make the government py the rest. This opinion should be useful, stop peoples houses being repossesed and help people back to work and not be abused by dodgy landlords upping the rent so the government pay it and stopping people from taking work as they wont be able to afford to sign of with thier £600 a month rent... would you. Give it some though!!!

makes a lot of sense
so you would be no good as a politician

[woodbine]

Originally Posted by mumofjusttwo

Hi. If my DH has no saving but I have £20k of savings and the mortgage is joint does that me that we would not be able to claim this?

Thanks

yes,you are assessed as a couple,and means tested benefits cant be claimed if you have more than 16k in capital

[woodbine]

Originally Posted by churchills2

What can I say.. I dont have Mortgage payment protection as I dont believe its worth the paper its printed and this is my personal opinion... and then I was made redundant from my job. Mortgage protection if I had it would cover the mortgage but not the rest of my bills so I got myself another job.... just to be finished up a few weeks later under the excuse of "you work is not up to standard" as they relocated to another part of the country employing cheaper foriegn labour so my morgage protection wouldnt be usable, however, with regards to the government help, I dont see why the government cant pay the mortgage. My mortgage is appox £430 a month which is a lot but not to much but in reality the government wont pay my mortgage, I get my house repossesed and then Im homeless and find a private landlord who charges me £550 a month rent and I pass that onto the government who say "yes thats fine we will pay that as your on benefits" Why dont the government say "well ok you have a 3 bedroom house and we will allow you £450 a month as if its the same as a private landlord" but if you have a mortgage of say £700 then the government should say "well were only prepared to pay £500 and the rest you have to pay for yourselves" and have a 12 month cap on this so no-one can buy a house for £300k and 'lose' thier job and make the government py the rest. This opinion should be useful, stop peoples houses being repossesed and help people back to work and not be abused by dodgy landlords upping the rent so the government pay it and stopping people from taking work as they wont be able to afford to sign of with thier £600 a month rent... would you. Give it some though!!!

Sorry most of that wouldnt work,for private tennants its now LHA not H/B,and theres a big difference,for mortgages they now pay all the interest after 13 weeks upto 200k,used to be 39 weeks and 100k,so a big improvement,they have also held the applicable interest rate at 6.08% until May,it should now be 2.58%,so whilst many benefits are a dogs breakfast the current ISMI rules are a big big improvement.
IMHO if people want the benefits of home ownership they should ensure they have some savings to fall back on for at least 3 and preferably 6 months,but if theyd rather have 2 weeks in the sun and that second family car instead of some savings then they almost deserve to be repossessed

[ali p]

That is a tad unfair woodbine I would love the chance to have 3 months worth of mortgage as savings. Unfortunately i don't as i was struggling through various reasons. I was put out out of work ,had to claim incapacity benefit for 3 months whilst ill. Just for the record i am hardly ever ill normally. I haven't had a holiday for 8 yrs and run one car. I came close to losing my house but thankfully managed to get back to workand save it. It is costing me a small fortune at the moment paying back the arrears on top. I wasn't entitled to any help. I can see, and had jcp people discussing with me and agreeing, the op said had he have been in rented or council accomodation it would have ben taken care of from square one. That is where the unfairness lies. I could have let my repossession run it's course and then been in need of council help which i would then have been able to claim. It doesn't make sense.

[Dannyw]

My son was made redundant end Dec 08 & signed on to receive contribution based JSA @£47/wk early Jan 09. Having bought his own house 14 months ago he asked what support there was available for mortgage interest payments & was advised for him... none. If he was renting, had a child, etc he could have support but as a single male aged 20+... tough. Where is this mythical government support???

[woodbine]

Originally Posted by ali p

That is a tad unfair woodbine I would love the chance to have 3 months worth of mortgage as savings. Unfortunately i don't as i was struggling through various reasons. I was put out out of work ,had to claim incapacity benefit for 3 months whilst ill. Just for the record i am hardly ever ill normally. I haven't had a holiday for 8 yrs and run one car. I came close to losing my house but thankfully managed to get back to workand save it. It is costing me a small fortune at the moment paying back the arrears on top. I wasn't entitled to any help. I can see, and had jcp people discussing with me and agreeing, the op said had he have been in rented or council accomodation it would have ben taken care of from square one. That is where the unfairness lies. I could have let my repossession run it's course and then been in need of council help which i would then have been able to claim. It doesn't make sense.

I was making the point that too many people prefer 2 cars and holidays abroad every year then when push come to shove they dont have a bean in savings,I agree that people who rent get help almost from day one whilst those of us with mortgages have to wait,but there are very reasonable insurance policies avaliable(not the ones offered by the banks)that will cover you for 12 months out of work.
But the main point i was trying to make is that ISMI has improved a hell of alot this year.

[woodbine]

Originally Posted by Dannyw

My son was made redundant end Dec 08 & signed on to receive contribution based JSA @£47/wk early Jan 09. Having bought his own house 14 months ago he asked what support there was available for mortgage interest payments & was advised for him... none. If he was renting, had a child, etc he could have support but as a single male aged 20+... tough. Where is this mythical government support???

Sadly and wrongly single people under 25 get a very raw deal when it comes to benefits,or virtually non existant benefits

[mac10]

I came off benefits and took a work from home job, designing web sites. I am disabled and was on DLA as well as income support. The job at first seemed to work out fine, I therefore remortgaged my house for £96,000. A short time after this the criteria of the job changed and I was asked to go out and meet clients at their places of business. Due to my disability I found I could not do this and was advised by my doctor to quit the job. I therefore went back on benefits, as well as still recieving DLA.

The DWP has since refused to pay my mortgage interest on the full £96,000 mortgage, but pay it only on the £48,000 of my original mortgage, which includes a added home improvement loan for £12,000 taken out at the same time, stating the reasons as that the extra money from my remortgage was used for paying of debts.

It has also since come to my attension that the rules changed in 1995 regarding interest payments on further loans taken out at the same time as the original mortgage for home improvements, these loans were since 1995 payable along with the original mortgage loan amount. The DWP from 1989 up until my starting employment in 2006 stated that they could not make interest payments on the home improvement loan, this was wrong from 1995 onwards to 2006.

They say they have now gone back to the original figure of £48,000 however the original interest they were paying on the mortgage loan was £36,000 the other £12,000 was the home improvement loan. Would it be possible to claim this interest on the home improvement loan of £12,000 from 1995 to 2006 and if so how should I go about it.

[123joe]

i asked my lender, who do support this scheme, as my 13 weeks unemployed is on the 20th, but was told it doesn't start till april and is yet to be finalised, i do intend to ask when i sign on friday at he jobcentre and see what they have to say, i do expect a different reply

[ali p]

Originally Posted by woodbine

I was making the point that too many people prefer 2 cars and holidays abroad every year then when push come to shove they dont have a bean in savings,I agree that people who rent get help almost from day one whilst those of us with mortgages have to wait,but there are very reasonable insurance policies avaliable(not the ones offered by the banks)that will cover you for 12 months out of work.
But the main point i was trying to make is that ISMI has improved a hell of alot this year.

Yes I agree things have improved but Myself as are a lot of other people struggle to pay the basics. I work and do whatever overtime i get the chance of. I can see what you are saying but please don't generalise us.

[credit crunch victim]

trouble with the mortgage protection policies is that are basicly worthless to a self employed person or they were when i looked into them
some people have had two cars two holidays and savings and are still finding it hard