Care and support

Help with mortgages and service charges

You can only get help with the cost of your mortgage interest or service charges, so there is no help with the cost of the capital repayment or endowment. You can only get help, if you are entitled to:

• income support or
• income-based jobseekers allowance or
• the guarantee credit part of pension credit

For more information on income support and jobseeker’s allowance click on the link entitled families and benefits on the right hand side of the page.

For information on pension credit click on the link entitled benefits for older people on the right hand side of the page.

The above benefits are calculated by comparing your income to a set figure, which is based on your circumstances (number of adults, whether you are a carer or disabled etc). The set figure also includes any mortgage interest that you may be eligible for. Those people, who are not entitled to these benefits because they have too much income, may become entitled when their mortgage costs are included in the calculation of these benefits.

If you have problems paying your mortgage or council tax, seek advice as soon as possible. You should also talk to your lender or council.

N.B. Housing costs are part of how income support, jobseekers allowance and pension credit are calculated. You may become entitled to these benefits because of your mortgage.

What housing costs will be met by income support, jobseekers allowance or pension credit?

The main costs that you can get help with are:

• mortgage interest;
• interest on loans for some repairs to your home;
• some service charges (see below for service charges for general counselling and support)

You can get help with your housing costs only for the home in which you normally live. If you rent your home you might get housing benefit instead (see earlier section).

You might also get help with the interest on loans taken out for repairs and improvements to your house. However, not all loans are covered. They must be for repairs needed to keep the property fit to live in, eg, drains, insulation, or putting in a bath, shower or toilet.

How much help will I get?

You can get help with mortgages and loans up to £100,000. You can get help only on mortgage interest, so there may be a shortfall between the help you get and your total monthly payment.

A standard interest rate is used when your housing costs are worked out. This changes frequently - contact jobcentre plus to find out the current rate.

When will I get help?

Most people will have to serve a waiting period before they actually receive help with their housing costs. The waiting period depends upon your circumstances and when you first incurred your housing costs.

Mortgages taken out before 2nd October 1995

If you took out your mortgage before 2 October 1995, you will get no help with mortgage interest for the first 8 weeks of your claim. After that, 50% of your eligible mortgage interest will be paid for 18 weeks. After that, you will get 100% of the eligible mortgage interest.

Mortgages taken out after 1st October 1995

If you took out your mortgage after 1 October 1995, you will get no help with mortgage interest for the first 39 weeks of your claim. After that, you will get 100% of the eligible mortgage interest.

Do these rules apply to everyone?

Some people can get maximum help with housing costs straight away. This includes people aged 60 or over, and people who bought their home under a co-ownership scheme (part rent, part buy).

Some people will be treated as if they took out their mortgage before October 1995 and will therefore get full housing costs more quickly. This happens if you:

• are a carer and do not have to sign on;
• are in custody awaiting trial or sentence;
• have a mortgage protection policy which did not pay out because you were ill when you took out the policy, or because you are HIV+;
• are a lone parent, because your partner has left you or died

Some people can also be treated as if they have satisfied the waiting period even though they were not in receipt of income support or income-based jobseekers allowance. For example, if you have recently separated from your partner and s/he used to claim for you, there are special rules that help you get your housing costs paid much sooner. These rules also apply if you have been getting some other benefits and have been refused income support/income-based JSA because your savings or income were too high.

If you think that this applies to you, seek further advice from your nearest Citizens Advice Bureau.

If I come off benefit for a time, will I have to go through these waiting periods again?

If you have served the waiting period and started work or training for work you can come off benefit for up to 52 weeks and claim again without having to start a new waiting period.

You can come off benefit for up to 12 weeks, for any other reason, or if you have not served your full waiting period, and claim again without having to start a new waiting period.

Will my housing costs be affected by other people living in my house?

The rules and amounts for non-dependant deductions are the same as for housing benefit.

What if a mortgage protection plan is paying out?

Any payment from a mortgage protection plan does not count as your income providing that the amount is not more than the total of:

• the interest you pay on a loan that is not paid by social security;
• capital you pay on a loan;
• the mortgage protection premium and any building insurance premium due

I am thinking of remortgaging - will this affect my housing costs?

The rules about housing costs and remortgaging are complicated. If you are getting income support, income-based JSA or pension credit and thinking about taking out a new mortgage or remortgaging, seek further advice.

Will housing costs meet service charges?

Housing costs may meet some service charges, for example a leaseholder’s obligation to pay for upkeep of their building. Communal heating and cleaning costs should also be included in your housing costs.

Housing costs will no longer meet the service charges for any general counselling and support services that you receive, but other help is available.

For example you may live in sheltered accommodation and have a warden who checks on you daily, or you may have an alarm system to call out a warden in an emergency. These costs should now be met by the supporting people scheme, administered by Hertfordshire County Council. You will be notified by the supporting people team of any changes that may affect you. If you are unsure about the changes contact the provider of your support services or contact the supporting people team on 01438 737555.

Housing costs do not meet the service charges for personal care. This includes:

• assistance at meal times;
• assistance with personal hygiene/bathing/dressing/getting into bed;
• counselling to deal with alcohol/drug addiction, overcoming mental health problems, etc.
• administering/supervising/reminding to take medication;
• after care support

Mortgage Interest Run On (MIRO)

Mortgage interest run-on (MIRO) was introduced from 4 April 2001 for people receiving income support or income-based jobseekers allowance. This may give help to people who return to work and who have mortgage interest included in their benefit. In some circumstances help towards housing costs can continue for an additional 4 weeks after starting work although this may be at a reduced rate. While you do not have to claim it, you should let the local jobcentre plus office know you are starting full-time paid work.

How do I claim help with housing costs and how are they paid?

If you are aged 60 or over you will be asked to give these details when you claim pension credit on form MI 12(PC). If under 60 and claiming income support you will be asked to give details of your housing costs on form MI 12. When you are sent this depends on your waiting period:

• existing borrowers: MI 12 is sent to you after 4 weeks
• new borrowers: MI 12 is sent to you after 36 weeks

You must fill out Part A of form MI 12, then give the form to your mortgage lender for them to fill in the rest and send it to jobcentre plus. If your mortgage lender has joined the mortgage interest direct scheme, your housing costs can be paid straight to your lender. If your lender is not part of the scheme, your housing costs will be paid to you with your normal benefit. You must then arrange to pay your lender.

Although most mortgage payments are due every calendar month, direct payments to your lender are made on a 4-weekly basis. Although you should not go into arrears because of this arrangement, contact your lender immediately if you think that arrears are mounting up.