3: State Benefits Pt. 3 Flashcards
If renting, which housing benefits might be available to you?
Universal Credit or Housing Benefit
If you own your home (with mortgage), which housing benefits might be available to you?
Support for Mortgage Interest
New claims can still be made for Housing Benefit in which circumstances?
If you are state pension age, or in temporary/sheltered, or supported housing. Otherwise, Universal Credit should be claimed.
What is the under-occupancy charge?
Also known as bedroom tax, it’s imposed on a claimant who’s house is too large for their needs.
When did Support for Mortgage Interest change from a benefit to a repayable loan with interest?
6 April 2018
What is the no-negative equity promise in Support for Mortgage Interest?
Any loan exceeding the property’s value is written off on death.
When must a Support for Mortgage Interest loan be repaid?
When the house is sold, ownership is transferred, or on death.
What mortgage amount does Support for Mortgage Interest cover interest payments for?
Up to £200,000 of mortgage borrowing.
How is the Support for Mortgage Interest interest rate determined?
Based on the Bank of England’s monthly average mortgage interest rate.
How does Support for Mortgage Interest differ for Pension Credit recipients?
Only the first £100,000 of the mortgage is covered, with no waiting period or claim limits.
What types of borrowing does Support for Mortgage Interest exclude?
Home improvement loans (unless essential for human habitation) and interest on arrears.
Universal Credit is replacing which 5 benefits?
All tax credits, ESA and JSA (income related), and housing benefit (except certain cases)
