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Content applies to England
If you are having problems paying your mortgage, you may be able to get income support mortgage interest (ISMI) to help pay the interest. ISMI can also pay for the interest on loans you have taken out for repairs or improvements.
When can ISMI be paid?
How do I claim?
When will I get the first payment?
How is it paid?
What about housing benefit?
When can ISMI be paid?
Most people who are unemployed or on a very low income can get help. However, if you got your mortgage after you started claiming benefits, you may not be eligible. If you already had your mortgage, but increased it after you started claiming, you will only get interest payments on the amount you originally borrowed. Loans for essential repairs or improvements may be covered even if you take them out after you claim income support or job seeker's allowance.
You can't get any money to cover the capital you originally borrowed, or any investment that is linked to your mortgage (such as an endowment policy, pension or ISA). You can ask your lender for a statement of your mortgage costs, and how much of what you pay is interest.
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How do I claim?
Income support mortgage interest is paid by the Benefits Agency. If you want to apply, you will have to fill in a form (MI 12), giving details about your situation. You will have to provide proof of your income, details of your financial situation and any related paperwork. Your lender will have to complete some of the forms confirming how much interest you pay. If you need help applying, contact your local advice centre. Use our directory to find one.
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When will I get the first payment?
People over 60 are entitled to help immediately, but there are waiting periods for everyone else. If you took out your mortgage after 2 October 1995, payments normally won't start until 39 weeks after you claim. How ever, you may get payments sooner if:
you got your mortgage before 2 October 1995
you are a carer and the person you look after is eligible for certain benefits
you are a single parent whose partner has died or left
you are an offender and are waiting for a trial or sentence
your have mortgage protection insurance but it won't pay because of a medical condition you already had when you took out the insurance
your mortgage replaces a previous mortgage on the same property, which was taken out with the same lender on or before 2 October 1995
If you are in one of these situations, you will probably be eligible for no interest at all for the first 8 weeks, half of the interest for the next 18 weeks, and all of the interest after 26 weeks. You will have to pay for any interest that is not covered from any income or savings you may have.
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How is it paid?
Income support mortgage interest is usually paid directly to your lender at the end of every four weeks. This is the case even if your mortgage payments are due on a monthly basis, so you may appear to be behind with payments. The rules about how much you get are complicated.
If you are separated and it is possible for you to receive some help with mortgage payment from your ex-partner, you will need to talk to an adviser to check how these payments are to be made. They may affect the amount of benefit you are entitled to.
If your home is considered to be too expensive or too large for your needs, any payments you receive may be reduced to cover the costs you would have if you could reasonably be expected to move to a more affordable home. If you are in this situation, get advice. It may be possible to show that it is not reasonable to expect you to move somewhere else.
The amount you get is also based on the average interest rate at the time you make your claim. If your mortgage interest rate is lower than average all of the interest will be covered, but if it is higher than average you will have to pay the difference from any income or savings you may have. It might be possible to negotiate with your lender if the difference is very small and you will be able to pay it off soon.