support for mortgage interest/ pension credit

boandelvis

my husband and I live in a house which when we first bought it was as a business (holiday flats). It wasnt viable, needed too much work doing to upgrade to a modern standard - work whihc we had planned to do but then my husband became ill and we were unable to do the work. We have deregistered the property as we were having to pay business rates and it is now a residential property
Its not much bigger than a decent three bed semi to be honest - the three 'flats' upstairs are actually just decent sized bedrooms.

We get pension credits and Ive just started to claim carers allowance as I had to give up my job to look after my hubby . I asked the pension credits people about support for mortgage interest but because the mortgage we origianlly took out was a business mortgage they cannot help with interest payments. we are unable, I would think, to convert the mortgage to a residential one as that would mean applying for another mortgage and we dont have employment income.
Are there any ways to appeal re the SMI? If I show them our mortgage statements and tell them that it WAS a business but not now and send them the details we received re the new council tax bracket when we changed from business to residential
Im not entirely sure I understand it but if we get it does it mean that I dont have to make any mortgage payments,

Thanks

[Deleted User]

IF you get it and it appears that you may not then it will be limited to 3.63% interest regardless of what interest you pay, limited to £200k and limited to 2 years, it is thought that from next year SMI will be repayable when the property is sold.
My advice for what its worth would be to sell it now and rent.

NYM

It just may be because the loan was a Business loan and not a residential mortgage, SMI is not payable.

Have you considered some form of equity release?

Alice_Holt

I believe the standard interest rate used to calculate SMI is now 3.12%.
For those on pension credit the help is limited to paying interest on up to £100,000 of the mortgage.

Vension's suggestion seems sound, Particularly if the property isn't suited to a disabled occupant.
Could you access rented social sheltered accommodation in your area?

SMI only helps with interest payments.
See - https://www.gov.uk/support-for-mortgage-interest/what-youll-get
"SMI can’t help you pay:
the amount you borrowed - only the interest on your mortgage
anything towards insurance policies you have
missed mortgage payments (arrears)"

You should be able the challenged the DWP decision not to award SMI.
The first step is to request a mandatory reconsideration of the decision.
See: https://www.citizensadvice.org.uk/benefits/benefits-introduction/problems-with-benefits-and-tax-credits/challenging-a-benefit-decision/challenging-a-benefit-decision-where-to-start/

rockingbilly

Alice_Holt wrote: »

I believe the standard interest rate used to calculate SMI is now 3.12%.
For those on pension credit the help is limited to paying interest on up to £100,000 of the mortgage.

Vension's suggestion seems sound, Particularly if the property isn't suited to a disabled occupant.
Could you access rented social sheltered accommodation in your area?

SMI only helps with interest payments.
See - https://www.gov.uk/support-for-mortgage-interest/what-youll-get
"SMI can’t help you pay:
the amount you borrowed - only the interest on your mortgage
anything towards insurance policies you have
missed mortgage payments (arrears)"

You should be able the challenged the DWP decision not to award SMI.
The first step is to request a mandatory reconsideration of the decision.
See: https://www.citizensadvice.org.uk/benefits/benefits-introduction/problems-with-benefits-and-tax-credits/challenging-a-benefit-decision/challenging-a-benefit-decision-where-to-start/

I agree that it's an option but to be honest I would not hold out too much hope.
This is where things are now going wrong. So many people who obtained a Buy to Let mortgage simply because it was so much easier to access and lived in the house as their home (telling a fib to the building society/bank on the application form) are now finding that that mortgage would not be considered for help - it was a secured business loan.
A home bought with the help of an overdraft, unsecured personal loan or credit card will not qualify.
It has to be a residential secured mortgage.

boandelvis

Thanks everyone for your comments and advice, will think things through