Does Housing Benefit (for Your Mortgage) Effect Your Credit Rating?

planetm_2

Hello,

I am a single parent on a low income and entititled to Council Tax benefit. I have been told I can have help with my mortgage interest payments after 13 months on benefit providing I am still entititled to Council Tax Benefit. Can receiving this help effect your credit rating as I am due to remortgage after the tie in period ends with current mortgage company. I HAVE NOT FALLEN BEHIND ON PAYMENTS - AM USING EVERY MEANS TO PAY - BUT CAN RECEIVING BENEFIT SHOW UP ON YOUR CREDIT SCORE?

Thank you for any help or advice you can give.

Planetm

Scarlett1

No claiming a benefit doesnt muck up your credit score, do you work part time and is this your main income or do you get topped up with IS ? im not sure that CTB entitles you to have your mortgage paymens paid, thought you had to be on IS or JSA, you might want to contact your local jobcentreplus and ask them or visit the CAB

Butlers1982

No No No

Definate No, your credit file makes no reference to benefits

planetm_2

So you are saying when I apply for a new mortgage, it will not show I have been receving housing benefit to pay my mortgage as this could effect getting a new mortgage I think?

I am currently applying for Income Support as on low earnings - actually nil earnings as self employeed and heavy losses. Does anyone know how housing benefit works for mortgage payments?

Thank you for all of your help!

healy

Housing Benefit does not pay Mortgage Interest, Income Support does.

real1314

and...

do you think you'll get a new mortgage whilst on IS? In most cases a mortgage provider will not touch people on IS for a new application.

You will get the interest only paid, you won;t get any part of the capital repayment, but iirc the lenders have an agreement that they will accept interest only whilst you are on IS.