Mortgage Help

1234John

Hi,

Quick question.

I am unemployed.

My partner works 16 hours a week and earns 400 a month.

We have two children and get tax credits. 113 a week.

If i was out of work for a yea or more, (i obviously would not get Job seekers allowance)my question is would the government help with our mortgage? and if so how much?

I hope to have a job long before this but always plan for the worst case...

Many thanks

BigAunty

Eligibility for the Support for Mortgage Interest scheme, the main one on offer for those struggling to pay their mortgage, is limited to receipt of certain types of benefits and some of those are time limited. There is no govt help for households on low employment to pay their mortgage in the way that you have outlined.

Income Support
income-based Jobseeker’s Allowance
income-related Employment and Support Allowance
Pension Credit

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

Your main options for preventing mortgage arrears or repossession include negotiating with your lender, selling the property, paying for it through employment income (such as your partner working full time) but there are also a few other schemes (such as a social housing landlord buying the property and granting the occupants a tenancy).

For info on your actual options, as opposed to the one that you hope for, see the Shelter website as it has comprehensive advice for struggling homeowners.

mynameistallulah

BigAunty wrote: »

There is no govt help for households on low employment to pay their mortgage in the way that you have outlined.

In the circumstances the OP describes he would qualify for a small amount of IB JSA, and hence be eligible for SMI.

1234John

Thankyou.

What is the thresholds for claiming Income based job seekers?

And what dose smi pay? I went to the link but still not clear...

Would it cover all of the interest on my mortgage? It mentions the bank of England base rate, how ever mortgage companies mainly charge bank of england plus X percent...

lld01

1234John wrote: »

Thankyou.

What is the thresholds for claiming Income based job seekers?

And what dose smi pay? I went to the link but still not clear...

Would it cover all of the interest on my mortgage? It mentions the bank of England base rate, how ever mortgage companies mainly charge bank of england plus X percent...

The current rate is 3.63%, if your lender's rate is higher then there is likely to be a shortfall. The max allowable balance it can be calculated on is £200k. Also, if you have remortgaged, the help will be based only on the original amount borrowed (plus possibly any amounts used for certain essential home improvements)

[Deleted User]

and the help is for a max of 2 years if claiming via inc based jsa

1234John

Thanks all