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Support for Mortgage Interest

2

Comments

  • tomtontom
    tomtontom Posts: 7,929 Forumite
    merlin68 wrote: »
    Is she on contribution based as she gave up work as you only get smi on income based as well.

    Those on CB benefits should still apply because the housing costs may give them an entitlement to income based benefits.
    NYM wrote: »
    This link might give you some info..SHELTER..SMI ...

    Apparently she should be aware that any payments she might receive may be reduced if her home is considered to be more expensive or larger than her needs.

    It is part of the regs, but I've never seen SMI limited for this reason - I guess it is accounted for by the overall £200K limit ;)
  • As she is living alone in a 4 bedroom house, I would've thought that it would be more sensible for her to sell it and downsize rather than spend her time trying to work out how many different benefits she can get.
  • rogerblack
    rogerblack Posts: 9,446 Forumite
    The concerns about remortgaging are as I understand it mostly around if those remortgages have happened recently enough that her claim for benefit could have reasonably been forseen at that time.
    If these were over a decade ago, this is not a concern.
  • Also remember that SMI is going to be a loan charged with interest and reclaimed either when working again or house sake.
  • rogerblack
    rogerblack Posts: 9,446 Forumite
    Also remember that SMI is going to be a loan charged with interest and reclaimed either when working again or house sake.

    I do not recall the details, but believe that this is only for those who apply post 2017, existing claimants are not moved over.
  • beecher2
    beecher2 Posts: 3,677 Forumite
    Tenth Anniversary 1,000 Posts Combo Breaker
    rogerblack wrote: »
    The concerns about remortgaging are as I understand it mostly around if those remortgages have happened recently enough that her claim for benefit could have reasonably been forseen at that time.
    If these were over a decade ago, this is not a concern.

    I dont' think that is true - I've seen cases on the mortgage forum where people have spoken of only getting the original amount of mortgage supported when remortgaging has taken place years ago. Also note that it has to be essential repairs according to national debtline
    They may also help you to pay loans that you took out to make necessary repairs or improvements to your home. Only certain repairs and improvement count, such as adapting your home for someone with a disability
    https://www.nationaldebtline.org/EW/factsheets/Pages/38%20EW%20Mortgages%20-%20help%20with%20payments/Page-02.aspx#

    Might be best to repost on the Mortgages thread
  • beecher2
    beecher2 Posts: 3,677 Forumite
    Tenth Anniversary 1,000 Posts Combo Breaker
    rogerblack wrote: »
    I do not recall the details, but believe that this is only for those who apply post 2017, existing claimants are not moved over.

    My understanding is that SMI will change from a benefit to a loan for everyone.
    The policy will affect all those on SMI, though this is through repayments which are delayed until
    such time as recipients are financially able to repay this loan. Support remains available at the
    time of need, but at a higher level due to the increased capital limit on support. Households
    may choose not to take up this loan and alternatively finance their mortgage. Those who
    currently claim SMI and do take up the support will retain the level of support they currently
    have
    http://www.parliament.uk/documents/impact-assessments/IA15-006D.pdf
  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    4 bedrooms - can she find some way to get an income from at least one of those. There are lots of flexible options if you don't like people, or are a bit odd, or your house isn't the best of places for others to come into .....

    Flexible ways include: offering B&B, AirBNB short-term rentals, taking in language students (which could be adults, or even coach driver/leader of groups) commitments are from just 1 week.

    How much is a £35k mortgage? Interest £30/week at 5%. Wouldn't be hard to try to cover it somehow.

    Or, radical, sell the house and downsize. No more worries like this.
  • zaksmum
    zaksmum Posts: 5,529 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Cheeky Monkey, she's had her house on the market for three years. It's in a bad area so little chance of selling it despite it being reduced several times.
  • zaksmum
    zaksmum Posts: 5,529 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    PaturesNew, she is suffering from serious ill health so quite naturally would not want to share her house with strangers at this time. She is desperately hoping to be able to go back to work - her job is held open for her for the time being - but her doctors say there is very little chance she will be able to do so.
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