Question regarding Support for mortgage interest.

Louk

I am separating with my husband of 5 years, we have one child aged 2, I work on a casual contract averaging 8 hours a week, he works full time and earns about £33k per year. We both have an equal share of our house and have been paying interest only on our mortgage for just under a year. If he left the family home would I be intitled to SMI? Most benefit calculators assume I would but they don't ask what he earns or whether the house is joint owned so does this make a difference when he has to then find and pay for his own accomodation.

karenx

You have to be on a qualifying benefit for SMI. It also goes on the origional mortgage amount, so if you have remortgaged etc that wont be included. And as its joint owned you will only get half to cover your share and your ex will be expected to pay the other half or you make it up yourself

MissMoneypenny

In addition to what karenx has said, the interest rate paid by the state is just under 4%, regardless of what your actual interest rate is. Any shortfall will have to be made up by you and your OH.

Louk

Thank you both, I knew about the interest rates etc before just wasn't sure where we stood with it being joint mortgage. Unfortunately I think this means that my husband would not be able to rent elsewhere and pay his share of the mortgage Hmmmm Bang goes that idea then

Louk

Sorry I was just reading this
If a mortgage is in joint names, both people are jointly and solely liable for the mortgage payments. This is known as joint and several liability.
This means that if one of you leaves and stops contributing to the mortgage payments, the mortgage lender can ask the other person to pay the full amount.
on the Citizens advice bureaus website

Would that then mean he wouldn't have too?

karenx

Yes he wouldnt have to but that means you need to pay it in full

Louk

The difference you mean? Sorry It's all a bit confusing (probably why there isn't alot of info about it online!)