mortgage interest

Hi everyone

Reading the government website on financial help it states that the mortgage interest help is normally the same amount as housing benifit if you were renting, is this right ?
my help was cut and i now pay £200 a month out of what i have left, i know alot are in the same boat , but it wouldnt make sense that i could rent a house and get help for the full amount which would mean i have to move from a house that has been adapted to my disabilities to a normal house for the sake of £200 a month ....any ideas ???
Thankyou....

Thank you

i am on dla high mob, midle rate care, also incap, husband is my carer but is now also on incap benifit due to heart problems and other issues with health, is there still a two year limit on how long they help with mortgage ?

jazzie wrote:

Hi everyone

Reading the government website on financial help it states that the mortgage interest help is normally the same amount as housing benifit if you were renting, is this right ?
my help was cut and i now pay £200 a month out of what i have left, i know alot are in the same boat , but it wouldnt make sense that i could rent a house and get help for the full amount which would mean i have to move from a house that has been adapted to my disabilities to a normal house for the sake of £200 a month ....any ideas ???
Thankyou....

Hi,

As Gordon says above, do seek individual advice regarding your circumstsances.

However I tihnk you are making the inference reference to the lower rate of mortgage interest vice Housing Benefit/Local Housing Allowance and the possibility of moving into rented property and claiming Housing Benefit/Local Housing Allowance.

Should someone who owns a house sell it, then try to claim Housing Benefit, then any capital one recevies from the sale of the house (or even rental income if they rent the house out instead of selling it) would be included in the calculation for Housing Benefit/Local Housing Allowance and thus lower or negate any Housing Benefit/Local Housing Allowance one attempted to claim.

The capital/income would also be subject to the disposal of capital rules so the capital could not just be given away in order to claim HB/LHA.

If one has capital from the sale of the property of over £16k then no Housing Benefit/Local Housing Allowance can be claimed. If one has capital over £6k then housing benefit/Local Housing Allowance will be reduced accordingly upto the £16k point where HB/LHA would cease to be paid.

Also bear in mid that over the coming months, Local Housing Allowance (payable if renting privately as opposed to renting Social Housing) is being cut from paying the median (middle) rent for an area to the lower 30th percentile (the lowest 30% of rents in a given area). Hence there could be a significant shortfall to make up between any Local Housing Allowance paid and the actual rent.

As for Socal Housing to rent, if you could even get onto a waiting list, you could be waiting many many years for suitable properties to become available and again any capital/rental income would be taken into account potentially negating claiming Housing Benefit.

Hence it is not just a straightforward case of selling ones house to rent another and claiming full Housing Benefit/Local Housing Allowance. The system doesn't work like that.

Pete

hi i also had this problem they only pay £80.00 to my mortgage so i have to find £280 which i carn't so house will be repossessed .
so i will end up in private rent but they will pay £550 for that no problem so they £190 worse off whats the point in that.