If you are a homeowner on a low income, you may be eligible for some help from the Department for Work and Pensions with:
- Your mortgage interest payments,
- loan payments, if the loan was to pay for repairs on your home,
- some service charges,
- ground rent.
Some housing-related support costs can also be met by the Supporting People scheme. You can read details about Manchester Supporting People (external website, Manchester residents)
The rules about getting help for housing costs are complicated. This section is a brief guide to the help you might be able to get.
Can I get help with my mortgage interest payments?
If you get Income Support, Income-based Jobseeker's Allowance, or Pension Credit you might be able to get help with your monthly mortgage interest repayments.
If you do not get any of these benefits at the moment it is worth getting a benefit check from an adviser to see if you can claim them.
Can I get help with any other housing costs?
If you are eligible for Income Support, Income-based Jobseeker's Allowance or Pension Credit, you might also be able to get help with the costs of ground rent, some loans and some service charges.
You can only claim the costs for loans and service charges if they were used to pay for essential repairs to your house.
The repairs must have been done to make sure the house was fit to live in. They have to be for one or more of the following:
Putting in a bath, shower, wash basin, sink or lavatory. The plumbing involved with this. This includes connecting up or installing hot water that is not to do with central heating.
- Repairs to existing heating systems
- Damp proof measures
- Putting in ventilation and natural lighting
- Putting in place drainage facilities
- Putting in place facilities for preparing and cooking food
- Putting in insulation
- Putting in electric lighting and sockets
- Putting in storage facilities for fuel or rubbish
- Repairs of unsafe structural defects
- Adapting the home for the special needs of a disabled person
- Altering the house so that there is separate sleeping accommodation for children of different sexes aged 10 or over - as long as the children are part of your family.
Some facts about help with mortgage interest or other housing costs
Even though you might be able to get help with your mortgage and other housing costs, it is unlikely that you will be able to get help with the full amount. If you are getting help with your mortgage or a loan, only the interest part of the mortgage or loan is paid. Most mortgage and loan payments will be made up of an interest payment and a capital repayment. The capital part of the payment will not be paid - and so you may still have to pay this out of any other money you have.
If you have to pay a high interest rate on your loan or mortgage, you may find that the full amount of interest is not covered. This is because the Department for Work and Pensions sets the interest rate that it is willing to pay. This might be a different rate to the one set by your lender.
If you are struggling to pay your mortgage or loan you should get advice as soon as possible.
The Department for Work and Pensions sets a maximum amount for loans or mortgages that it will pay for. If the total value of the loan or mortgage is above this maximum amount, the help you get will only cover you up to the maximum amount.
How much the maximum amount can be depends on how long you have been claiming Income Support, Income-based Jobseeker's Allowance or Pension Credit.
- If you have been on these benefits since before 2 August 1993 then there is no maximum amount
- If you started getting one of these benefits between 2 August 1993 and 10 April 1994 and have been getting them since, then the maximum amount is £150,000
- If you started getting one of these benefits between 11 April 1994 and 9 April 1995 then the maximum amount is £125,000
- If you started getting these benefits on or after 10 April 1995 then the maximum amount is £100,000
If you have increased your loan or mortgage since you have been on benefits then get advice.
If you live in a large home with a small family, or you live in an expensive area compared to areas near you, you might not get help with all your housing costs even if they are under the maximum amount. If you have been told that this applies to you then get advice.
If an adult, other than your partner or children aged under 16, or under 19 if they are in full-time education, lives with you, you might have an amount deducted from your help with mortgage and housing costs. This deduction is called a 'non-dependant deduction'. If your partner is the same sex as you, before December 2005 they will also count as a non-dependant and the deduction might be applied. From December 2005 same sex couples are treated as a couple when claiming means-tested benefits.
If you have a 'non-dependant' living with you, you may want to ask the non-dependant for a contribution to the mortgage and housing costs. The amount of non-dependant deduction depends on the income of the non-dependant. The greater their income the greater the deduction will be. There are some exceptions to this rule, for example if the person living with you is under 25 and getting Income Support or Income-Based Jobseeker's Allowance, then there will be no deduction.
If you want to check whether there will be a non-dependent deduction from your help with housing costs, or if you want to know how much the non-dependent deduction will be get advice.
How long do I have to wait before I start getting help with my mortgage / housing costs?
Getting Income Support or Income-Based Jobseeker's Allowance
You will probably have to wait before you get help with your mortgage and housing costs. How long you have to wait depends on your circumstances.
The descriptions below are a guide only, there are exceptions to these rules.
If you took out your mortgage before 2 October 1995 then you will probably get no help with your mortgage costs for the first 8 weeks. Then, after 8 weeks you will get 50% of your eligible housing costs paid - this will last for 18 weeks. After these 18 weeks you will get all of your eligible housing costs paid.
If you took out your mortgage on or after 2 October 1995 then you will probably get no help with your housing costs for the first 39 weeks. After 39 weeks you will get all your eligible housing costs paid.
It is possible that you won't get any benefits until you are eligible for help with your mortgage and housing costs. If this is the case you should still claim straightaway.
If you want to be certain of when you will get help with housing costs get advice.
Getting Pension Credit
You should be able to get help with your eligible housing costs straightaway.
How do I apply for help with my mortgage / housing costs?
You need to make a claim for Income Support, Income-Based Jobseeker's Allowance or Pension Credit. When claiming you will be asked if you need help with your housing costs. Give this information.
There might be a waiting period before you are eligible for help with your mortgage and housing costs. The waiting period starts when you first make the claim so it is important that you claim straight away. Some people also won't get any benefit until the end of the waiting period but you still need to claim straight away.
About four weeks before you are due to start getting help with your mortgage interest or housing costs the Department for Work and Pensions (DWP) will send you an MI 12 form. The MI 12 form asks you for more details about your mortgage or loan. It is important to fill this in as soon as possible because this has to go to your lender to confirm the details. If you delay in filling in the form it may take longer for your first payment to come through.
If you need help filling in the form get advice.
Taking out a mortgage while on benefits
Taking out a mortgage is a big financial commitment and the rules about getting help with a new mortgage while you are on benefits are complicated and limited. You should get advice before you do anything. If you are renting your home at the moment and are getting Housing Benefit then you might be able to get help with a mortgage on a new property. To be able to get help with the mortgage most of the normal rules about housing costs apply but the amount of help you can get is worked out differently. The maximum you can get is the amount of Housing Benefit you were getting before you took out the mortgage, plus any other help with housing costs you were getting before you took out the mortgage.
Need more help? Live in Manchester? Send us an email
Information Provider:
Manchester Advice
Date Reviewed:
22 October 2008
This information is for guidance only and is not an authoritative statement on the law. Please read our Terms and Conditions.
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