Does anyone know the rules for crisis loans?

oojakapipi

Hi,

I lost my job in december and stupidly didn't sign on until march as I thought I would have found a new job by now.

I am receiving JSA and council tax benefit, but nothing to help with my mortgage, they say I would have to wait 6 months for that, by which time I would have lost my home or (fingers crossed) got a job.

I am £300 per month in deficit, my mortgage is £238 interest only by agreement with mortgage co. until I find a job.

I am wondering if I can apply for a crisis loan to cover a couple of months mortgage payments, I looked on the jobcentreplus website and it doesn't say if they will approve a loan for a mortgage, they will for rent. I am really worried about losing my home.

I had asked this question on my thread on debt free wannabe board but realised that I was asking on the wrong board.

Thanks for reading.

babyboo42

i think it's unlikely they would consider a crisis loan,you can apply for a budgeting loan and be non specific as to what you want it for and just tick a couple of the boxes. not sure how much you would get though.
good luck

cifpower

You have to be in receipt of income-based JSA for 26 weeks before you can apply for a Budgeting Loan. You can apply for up to £1500

Morglin

With a crisis loan, the criteria is pretty strict, although you don't have to be recieving any benefits.

http://www.direct.gov.uk/en/Bfsl1/BenefitsAndFinancialSupport/DG_10018856


Budgeting loans usually need an exact breakdown of what it is you need to buy.

http://www.adviceguide.org.uk/index/life/benefits/help_for_people_on_a_low_income_-_the_social_fund.htm#budgeting_loans

http://www.jobcentreplus.gov.uk/JCP/Customers/WorkingAgeBenefits/Dev_008440.xml.html

Lin

Laine49

Sorry but you can only get a crisis loan for essential living expenses eg food, toiletries, fuel. There are also items crisis loans if for instance your cooker breaks down. The previous reply is correct that you can only apply for a budgeting loan if you have been in receipt of JSA or income support for over 6 months. I would suggest that your best option at present is to go back to your lender and explain the situation. Your only other option would be to pay your mortgage lender with your benefit and then apply for a crisis loan because you have no money for food but this is quite high risk as I couldn't guarantee that you would receive the crisis loan and you also have to have absolutely no money to be awarded anything. Sorry this isn't more hopeful, but I work in JCP and know how the system works.

Scarlett1

ooja do you have mortgage protection cover ? what about just taking any job, if you are at risk at losing your home then working in kfc or macdonalds could keep the roof above your head

dekaspace

Really, I was wondering as 3 years ago I had been signing on 9 months when my bedsit was burgled, they took everything, cutlery, clothes even bread and baked beans from cupboard, I was left with a bare room with no clothes just a bed with no sheets or quilt and no lightbulb in ceiling

I was turned down for a budgeting loan, and was offered £15 crisis loan which I had to pay back at £6.14 each week(strange amount)

cifpower

Perhaps you had 6 months of JSA Contribution based and the rest was income based

oojakapipi

Thanks for the replies,

It is very frustrating, the government seem determined to make people lose their homes. Being a very stupid person I didn't sign on until March (became unemployed in Dec), lived off my savings and thought I would have job by now.

While I agree with what the lady in the jobcentre told me that the government don't want to help people buy their houses, I pointed out to her that if they make me wait 6 months, the mortgage company would have reposessed my home by then and the amount of stress people with mortgages are going through is detrimental to their job search. Also, have just found out that the council would not help with housing if you lose your home, as they say that you made yourself homeless!

Why can't they be sensible and treat the mortgage payments (for people able to work) as a loan, like the budgeting/crisis loans. So, you don't lose your home, but pay back the help the government gave when you needed it. As I pointed out to the lady at the jobcentre, a mortgage payment of £238 would turn into a HB claim of £600 if I was to lose my home and go into private renting, she agrees but says there is nothing to be done about it.

I have been offered a temp job (8 weeks, part time), which will help but will still not allow me to meet full mortgage payment. National Debtline tell me that the mortgage co. will only start reposession proceedings when I am 3 full months in default, so if I can pay something towards it each month, will delay action.

Thanks for getting back to me everyone!

lynzpower

its not jsa income support or any other benefit- its HOUSING BENEIFT which paythe mortgage- after the qualifying period.

if you havent signed up for this do so immiediately!

suelees1

HB is only paid for rented propety. It's Income Support mortage interest for those with mortgages. You usually have to wait 39 weeks from the date you claim. However if your mortgage was taken out prior to October 1995 (I'm not positive about the date) you will start to be paid 50% of your interest from week 9 then full interest after 6 months. Unfortunately there's no other help you can get.