Mortgage interest payments

croyland87

allen35 wrote: »

Is he single, how much outstanding on his mortgage, any savings and what rates of DLA does he get?

He has £150000 outstanding on the mortgage has no savings and DLA rates are care lower mobility higher but I have just checked on the net wouldn't that stop when 65 and replaced with another benefit.

Torry_Quine

croyland87 wrote: »

He has £150000 outstanding on the mortgage has no savings and DLA rates are care lower mobility higher but I have just checked on the net wouldn't that stop when 65 and replaced with another benefit.

His DLA won't stop and he must continue with it even if told otherwise. Over the age of 65 you can only apply for Attendance Allowance which has no mobility component but if already getting DLA it continues

allen35

croyland87 wrote: »

He has £150000 outstanding on the mortgage has no savings and DLA rates are care lower mobility higher but I have just checked on the net wouldn't that stop when 65 and replaced with another benefit.

Based on this info' he will continue to receive PCGC at a reduced amount for Housing Costs due to increase in income (£189pw SRP) and he will now qualify for Pension Credit Savings Credit due to reaching 65 which should be approx' £16.80 extra per week.

If entitled to full amount of SMI based on £150,000 he should receive £64.06pw and if entitled based on £100,00 it will be £29.16pw as well as £16.80 PCSC, £189 SRP and his DLA and he will receive full entitlement to Council Tax Support.

He will remain on DLA as he was entitled before reaching the age of 65, he will probably be transferred to PIP in the future.

BigAunty

So potentially the OPs friend will net a weekly income of around £285 per week with no council tax to pay and support towards the mortgage of up to £65 a week (not sure it will make much of dent in a £150k mortgage if its on a repayment basis).

In case the OPs friend doesn't qualify for SMI or the SMI scheme gets disbanded, I recommend the Shelter website for information on how to avoid mortgage arrears and repossession. They are a housing rights charity who list the options available to owners struggling to pay their mortgages.

There used to be a scheme whereby those with disabilities or dependents at risk of repossession could have their property bought by a social housing landlord and they would be permitted to stay on in the property as a tenant and be able to qualify for HB (Usually someone who sells their property and stays in it as a tenant doesn't qualify for HB for 5 years but this restriction is waived for this scheme). I don't know if it still exists but Shelter may know.