am I entitled to housing benefit?

BigAunty

centralpark wrote: »

It is a capital and interest repayment. We werent allowed to go interest only. Erm im not sure what portion is what though.

Your mortgage company should be able to give you a statement to show this breakdown.

Interest only mortgages without an investment vehicle should be banned.

We see loads of people on the housing forum approaching the end of their mortgage term who have been coasting along paying the interest only for years who have no chance of coming up with the huge lump sum to pay it off and little chance of getting the mortgage term extended.

There are more than 100,000 pensioners on pension credit who are on the support for mortgage interest scheme - this means taxpayers are coughing up to pay the accommodation costs of people who have retired without managing to pay off their properties, plus another 100,000 plus other social groups on SMI, some of whom will never return back to employment. Sorry to go a bit off topic about this.

Housing_Benefit_Officer

BigAunty wrote: »

So HB calculations will ignore all the mortgage, interest and repayment parts?

Yes - Rent minus mortgage and rental expenses = income.

BP1987

For HB purposes they will take into account the value of the property minus 10%, they will then deduct any outstanding mortgage and use the amount left over as capital.

Plus where rental income is involved as Housing Benefit Officer states Rent minus mortgage and rental expenses = rental income.

If the property is up for sale the capital amount can be disregarded for 26 weeks and for further period which is reasonable if you are making sound efforts to sell the property.

Hope this helps