Mortgage interest support

ukcarper

PasturesNew wrote: »

Only once you'd been unemployed for 9 months. It's been changed, with a couple of schemes, to be paying out much sooner for the past couple of years, as a special 'helper' to those affected.

So, it's a new/short-term benefit that kicks in quicker.

I believe that prior to 1987 mortgage interest payments were paid strait way, then only 50% was paid for the first 16 weeks. Then in 1995 the 39-week wait was introduced.

PasturesNew

ukcarper wrote: »

I believe that prior to 1987 mortgage interest payments were paid strait way, then only 50% was paid for the first 16 weeks. Then in 1995 the 39-week wait was introduced.

I didn't have a mortgage back then.

treliac

michaels wrote: »

Max 2 years now isn't it?

Provided you qualify for income related benefits, looks as if it goes on indefinitely...

There is no limit to how long you can get SMI if you are getting:

• Income Support
• income-related Employment and Support Allowance
• Pension Credit

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_180321

myhouse_2

treliac wrote: »

Provided you qualify for income related benefits, looks as if it goes on indefinitely...

Absolutely disgusting isn't it. I understand the reasons why it's socially desirable to avoid the upheaval of people being forced to leave their house, but frankly if you are on income related benefits for 2 years, you should probably be renting rather than living in your own house and having the taxpayer pay the interest of your 200,000 mortgage.

satchmeister

myhouse wrote: »

Absolutely disgusting isn't it. I understand the reasons why it's socially desirable to avoid the upheaval of people being forced to leave their house, but frankly if you are on income related benefits for 2 years, you should probably be renting rather than living in your own house and having the taxpayer pay the interest of your 200,000 mortgage.

Renters who work, pay tax who are not on any benefits and always pay their rent on time can still be forced to leave their home after six months and with just two months notice.

ukcarper

Interest on £200,000 at 3.6% approx. £140 per week max housing benefit being restricted to £400 almost 3x as much.

myhouse_2

satchmeister wrote: »

Renters who work, pay tax who are not on any benefits and always pay their rent on time can still be forced to leave their home after six months and with just two months notice.

Quite.
Though when it involves private housing, it would effectively bankrupt many people. That is not good for society (though I don't think the taxpayer should be bailing out private house owners for indefinite periods of time).

myhouse_2

ukcarper wrote: »

Interest on £200,000 at 3.6% approx. £140 per week max housing benefit being restricted to £400 almost 3x as much.

True - it's not the fact that the interest is paid - it's the fact that it's indefinite. In principle people on benefits shouldn't be paid indefinitely to live in their house - there is social housing stock (well, maybe that should be "was") which is managed for this purpose. If people want to stay in their own house they should have an incentive to do this - a deadline.

ukcarper

I think people are more likely to be claiming LHA long term than SMI.

treliac

myhouse wrote: »

Absolutely disgusting isn't it. I understand the reasons why it's socially desirable to avoid the upheaval of people being forced to leave their house, but frankly if you are on income related benefits for 2 years, you should probably be renting rather than living in your own house and having the taxpayer pay the interest of your 200,000 mortgage.

You've still got to pay off the capital sooner or later so, I suppose, it catches up with you eventually and maybe the fall is harder, the older someone is.

ukcarper wrote: »

I think people are more likely to be claiming LHA long term than SMI.

That may be the case but I'm not so sure. With more 50 years+ workers facing redundancy, there will be increasing numbers of older workers who have not finished their mortgages and who will not get back into work imo.