Mortgage payment protection insurance You may have taken out mortgage
protection insurance when you got
your mortgage. If you did, make sure
you claim this
if your circumstances have changed.
If you are turned down by the insurance
company, contact a specialist advice
as Citizens Advice Bureau
or National Debtline,
Income Support or Job Seeker's Allowance If you claim Income Support or Job Seeker's Allowance,
the Benefits Agency will normally pay some of the interest on
This is how it works:
mortgage interest is paid at a standard rate
set by the government, unless your interest rate is less than 5% in
which case the actual interest rate will be paid
all mortgage interest payments are sent directly
to your lender by the Benefits Agency, unless your lender is not part
of the scheme agreed with the Benefits Agency
you can only claim interest on the first £100,000
of your mortgage, unless the extra was taken out to adapt your home
for someone with a disability.
Existing borrowers If you took your current mortgage out before 2 October 1995,
you will generally have to wait 8 weeks before getting anyhelp
with mortgage interest payments.
You will then only get half of your mortgage interest
paid for the next 18 weeks (4 months) of your claim. After this, you
will have your mortgage interest paid in full.
New borrowers If you took out a new mortgage (or remortgaged) after 2 October
1995 and claim Income Support or Job Seekers Allowance you will generally
get no help at allwith mortgage interest payments for the first
39 weeks (9 months) of your claim.
You will then have your mortgage interest paid
Special rules If you or your partner are aged 60 or over the Benefits Agency
will pay the interest in full immediately with no waiting time.
You will be treated as an existing borrower and
not have to wait the full 9 months if:
you don't have to sign on because you are caring
for someone who is sick
you have had a mortgage payment protection
insurance claim refused because of pre-existing illness or HIV/AIDS
you are a prisoner on remand
you have a child living with you and
you are claiming Income Support because your partner has died or has