Benefit for paying mortgage interest...

Mics_chick

I'm new to this board so please be gentle with me I heard it can get more than a little heated in here sometimes :eek: so I hope my query doesn't rattle anyone's cage... :shhh:

I'm asking this query on behalf of my friend who hasn't got computer access (really )
She currently gets benefit to pay the interest on her mortgage.
She wants to re-mortgage the house to buy her ex out because he wants his money out of it and his name off the mortgage.
When the mortgage interest cost increases would the benefit increase or wouldn't she be able to claim it any longer...?

chivers1977

As far as I am aware mortgage relief payments only cover the sum borrowed to buy the property in the first place.

hissingsid

This link gives a good overview.

http://www.housingoptions.org.uk/gi_factsheets/gi_fs_18.html#ihc

If you look at 'Help with Mortgage Interest', and scroll down to qualifying loan, you will see that such loans are eligable. Do read the rest of the information though, as it isn't automatic and there are limits.

dmg24

hissingsid,

The section that you refer to relates to the initial amount that ISMI will cover, the OP is referring to remortgaging. Additional amounts are only allowed in the following circumstances:

to adapt the home for the special needs of a disabled person
to provide separate sleeping accommodation for children of different sexes aged 10 or over who are members of the claimant's family
to pay for repairs and improvements which are needed to maintain the fitness of the home for human habitation
to purchase alternative accommodation which is more suited to the special needs of a disabled person
to purchase alternative accommodation which is necessary to provide separate sleeping accommodation for children of different sexes aged 10 or over who are members of the claimant's family

hissingsid

Thanks for correcting me dmg24.

It may however depend on whether the ex is currently paying his share of the mortgage interest or not. I believe that where someone on a joint mortgage has to meet the cost in full (bcos the other party isn't paying), then a new loan to buy them out can be met as the overall amount of interest paid will not increase. Not sure about the 38 weeks in such cases.

What is your understanding. On looking at the original post it does indicate an overall increase in mortgage interest, so I may be going off at a tangent.