Support for Mortgage Interest

benefitspleasehelp

Evening.

Hoping someone with benefits knowledge can help please as I am struggling to work out how a system can be so unfair, always assuming I've calculated correctly.

We are a couple (husband is 70 and I'm in my 40s) We have 2 dependent children, (one is under 1) a large mortgage (over 200k) little income and now no savings. Our current income is the state pension and a small private pension.

I have just entered all of our figures into the entitled to website and it suggests my husband will receive pension credit and support for mortgage interest on £100k of our mortgage. However, if I recalculate as a single mother I qualify for income support and SMI on £200k of our mortgage and it would appear we also end up £100 a week better off living as single people. How can it possibly be right that a benefits system would encourage us to live apart and once you are past 65 you no longer qualify for the same mortgage help!

[Deleted User]

most people over 65 have no mortgage or small ones,as for the system paying more for single people it cost just as much for one parent "family"to live as it does for a couple(well almost)

FBaby

Do you really see it this way? That it is ok to get such a mortgage when you have a husband who can't pay for it and you decide to have children?

The system is not encouraging you apart, the system would like you to go to work and pay your large mortgage whilst your husband to looks after the children. What's wrong with this option?

benefitspleasehelp

Well thank you for that, it seems an extremely judgmental post!

I didn't include many personal details as I didn't realize anyone would be so critical.

My children were planned and conceived while we had an income, same as the mortgage was affordable when we took it on some 10 years ago. My husband has sold his business, the sale price to be paid over a set period, only now the new owner has decided not to bother paying - going to be very difficult to fight it too as our savings have already gone to solicitors and survival, just to find out we'd have to take the matter to court and we have no further money to do so. As for me, yes I am looking for work despite having young children. I didn't work prior to them being born as I was caring for a 90 year old MIL with dementia. My husband also now has MH issues which will make it very difficult to look after 2 young children.

FBaby

It's your attitude that the system is encouraging you to live apart that makes me judgemental. You have made choices in your life that unfortunately didn't go the way you expected and that without some protection which was taking quite a risk considering the large mortgage and the fact that your husband would always struggle to work again. You can't blame the system for where you are now. Just like many couples whose life hasn't taken the route they planned, you will now need to make choices to get back on your feet.

I do sincerely wish you good luck, just hope you can see beyond what you could get in benefits if you became a single mum.

BigAunty

I'm not an expert with SMI but wasn't aware of age limit conditionality when it came to the application process? Can anyone comment?

AFAIK, just over half of people claiming SMI receive Pension Credit so have reached retirement age without being able to pay off their mortgage. This is one of the reasons why the government are looking to reform it.

To the OP - is the 200k mortgage the original sum or did you remortgage at some point?

pmlindyloo

benefitspleasehelp wrote: »

Evening.

Hoping someone with benefits knowledge can help please as I am struggling to work out how a system can be so unfair, always assuming I've calculated correctly.

We are a couple (husband is 70 and I'm in my 40s) We have 2 dependent children, (one is under 1) a large mortgage (over 200k) little income and now no savings. Our current income is the state pension and a small private pension.

I have just entered all of our figures into the entitled to website and it suggests my husband will receive pension credit and support for mortgage interest on £100k of our mortgage. However, if I recalculate as a single mother I qualify for income support and SMI on £200k of our mortgage and it would appear we also end up £100 a week better off living as single people. How can it possibly be right that a benefits system would encourage us to live apart and once you are past 65 you no longer qualify for the same mortgage help!

One of the 'quirks' of the system - probably because the number of people in your situation is very small.

See here for verification:

https://www.gov.uk/support-for-mortgage-interest/what-youll-get

Hope you manage to find an answer to your problems.

You need to speak to your lender to see what help they can give you.

Does your husband have care needs that would make him eligible for Attendance Allowance?

pmlindyloo

benefitspleasehelp wrote: »

Well thank you for that, it seems an extremely judgmental post!

I didn't include many personal details as I didn't realize anyone would be so critical.

My children were planned and conceived while we had an income, same as the mortgage was affordable when we took it on some 10 years ago. My husband has sold his business, the sale price to be paid over a set period, only now the new owner has decided not to bother paying - going to be very difficult to fight it too as our savings have already gone to solicitors and survival, just to find out we'd have to take the matter to court and we have no further money to do so. As for me, yes I am looking for work despite having young children. I didn't work prior to them being born as I was caring for a 90 year old MIL with dementia. My husband also now has MH issues which will make it very difficult to look after 2 young children.

Are you claiming child tax credits?

If you work then you may be entitled to working tax credits as well and some child care costs.

If you work then you would lose the Pension Credit.

You can put different scenarios into the benefit calculator on https://www.turn2us.co.uk to find out your entitlements.

BigAunty

benefitspleasehelp wrote: »

it would appear we also end up £100 a week better off living as single people...

That kind of sum can evaporate just through the fact that the separate households don't share bills so there are two sets of energy, water, telecoms, insurance, tv bills....

The govt chooses to throw money at lone parents to ensure their children don't suffer through poverty rather than get their parents into employment and resolve it that way. This country suffers from one of the highest transport and child care costs in europe.

For your mortgage issues, see the Shelter website as it has very helpful info on how to prevent arrears and repossession,, plus a helpline for homeowners.

To help with budgeting, the MSE budget planner is supposed to be really good to help households get a true picture of their income/expenses so download that.

tomtontom

The £200K limit for working age people was introduced as a result of the poor economy, more people were out of work through no fault/ choice of their own. It is expected to be lowered again in 2015/16 - I can't recall which but it is in Budget report should anyone wish to look it up - it was only ever a short/ medium term measure to help people who found themselves affected by the recession.

rogerblack

http://www.rightsnet.org.uk/forums/viewthread/3013/ goes into this in some detail.

This change is due to come into effect in April 2013
If in a couple there is a younger partner then both partners must wait until they have both reached the qualifing age for Pension Credit