Does the govenment pay interest on remortgages?

ILW

With the scheme that pays the interest on mortgages if someone is out of work, will it pay for additional borrowing on the mortgage or just for the original purchase of the property?

sammyjammy

Original purchase only.

ETA you can claim for additional borrowing if you can prove via receipts etc it was spent on necessary repairs to house such as new roof etc.

ILW

sammyjammy wrote: »

Original purchase only.

ETA you can claim for additional borrowing if you can prove via receipts etc it was spent on necessary repairs to house such as new roof etc.

From another post it appears that is not the case, and they will pay SMI on your mortgage from the time you start claiming. Sounds like could be a way of getting a nice little interest free loan.

Graham_Devon

The details are here:
http://england.shelter.org.uk/get_advice/repossession/mortgage_arrears/support_for_mortgage_interest#0

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

PasturesNew

Whatever's true/not, there's already two versions of SMI: http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_180321

PasturesNew

This document says it's only for the original amount borrowed and any provable home improvement costs:
http://research.dwp.gov.uk/asd/asd5/summ2009-2010/711summ.pdf
Bottom of page 1, footnote 2.