Mortgage Repayment Help

By December 5, 2008House Repossession

Claim government benefits to help with mortgage repayments

Income Support and Job Seekers’ Allowance

If you get Income Support or Job Seekers’ Allowance, you will probably be eligible to claim help in the form of mortgage repayment benefits. The Department of Work and Pensions (DWP) should pay some of the interest on your mortgage for you.

To qualify for mortgage benefits, you need to complete a housing costs form. You probably did this when you first made your claim for Income Support or the Job Seekers’ Allowance. But there’s a qualifying period where the DWP assesses what help you are entitled to. This depends when you took out the mortgage.
The DWP pay mortgage benefits at a set interest rate, which might not be the same as your lender’s interest rate. Make sure you take this into account when you are calculating your arrears.

Free help calculating your level of debt:

•    PayPlan.com

•    MoneyExpert.com

•    InsolvencyHelpLine.co.uk

•    You get no help until eight weeks after your Income Support or Job Seekers’ Allowance claim is agreed.

•    In week 8 to week 25 you should be paid half of your mortgage interest payment each month

•    From week 26 onwards they should pay the full monthly mortgage interest amount for you
Mortgages taken out after October 2nd 1995.

•    For the first 39 weeks you won’t get any support from the DWP.

•    From week 40, all your mortgage interest should be paid for you.

Find out more at the Department of Work and Pensions website: dwp.gov.uk

As you can see, the mortgage repayment benefits on offer are not particularly generous and could still leave you with an enormous shortfall to pay to keep up your mortgage repayments. So the benefit system, unless you are very lucky and have very special circumstances, will probably not be much help.

It would be great to get feedback from anyone who has claimed government benefits to help with mortgage repayments.