Published On: Fri, Sep 6th, 2019

Will Universal Credit pay my mortgage? Help available if you’re struggling to pay interest | Personal Finance | Finance


Universal Credit may be available for eligible applicants, such as if they have a low income or are out of work. The payment is made up of a standard monthly amount. How much one gets in terms of this amount will depend on whether they’re 25 and older or not, and whether they’re claiming as a couple or a single person. Some people may be able to get extra amounts too, such as if they have children, care for a severely disabled person, or are living with a disability or health condition which limits capability for work and work-related activities.

Help with housing costs may be available, with the amount being dependent on age and circumstances.

This particular payment can help to cover rent and some service charges, the government website states.

Those who are homeowners may be able to get a loan in order to help with interest payments on their mortgage, or on other loans which have been taken out for one’s home.

This is called Support for Mortgage Interest (SMI).

In order to qualify for this loan, the homeowner will usually need to be getting either Income Support, income-based Jobseeker’s Allowance (JSA), income-related Employment and Support Allowance (ESA), Universal Credit, or Pension Credit.

They can start getting the loan for the date they begin getting Pension Credit, after having had nine consecutive Universal Credit payments, or after they have claimed any other qualifying benefit for 39 weeks in a row.

Those eligible with get help paying interest on up to £200,000 of one’s loan or mortgage.

However, if a person is getting Pension Credit, or began claiming another qualifying benefit before January 2009, then this figure is £100,000.

Currently, the interest rate used to calculate the amount of SMI one gets is 2.61 per cent.

SMI is paid as a loan, meaning the money one gets will need to be repaid with interest, upon a person selling or transferring ownership of their home.

Gov.uk states that the interest added to the loan may go up or down, however the rate will not change more than twice in a year.



Source link

Most Popular News