Does anybody know if you are entitled to receive Mortgage intrest payments if you received IB or IB and DLA. From what i've read it only seems to be IS and JSA(IB)
many thanks

Only entitled to mortgage interest payments if paid through Income Support/JSA income based. If IB is above IS/JSA applicable amount then the excess will determine amount of interest to be paid. The excess amount will be that amount the client will have to contribute themselves towards the mortgage interest.

The waiting period comes into it. Any time on IB can contribute towards reducing the waiting period if income/capital during that time would have stopped IS/JSA income based being paid.

Look at schedule 3 para 4 sub paras(4)(5A) & (5B)IS regs

Thank you for your reply

Could i just clarify please

A single claimant over 25 receiving Short term higher rate of IB at £68.20 so their I.S. Applicable amount would be £56.20. If there housing cost (intrest only) amounted to £110 per week. Would he
a) be entitled to I.S. as his applicable amount would now be £56.20+£110=£166.20 and would
b) receive the difference between his income (£68.20) and his AA (£166.20) = £98.00 in housing cost payments straight to the mortgage broker.
Having to pay £12 himself to make up the difference?

Are there any times when the waiting period is shortened i.e. higher rate DLAC etc

Many thanks

You've more or less got the calculation right, but beware the calculation of housing costs is based on the remaining capital outstanding and the housing payments are based on the 'Standard Interest Rate' (SIR), which I think is 4.5% at the mo. So, in your example, if the outstanding capital is £75,000, then the weekly housing cost is £87.69. On top of the £56.20, this makes £143.89, so IS will pay £75.69 to the mortgagee, leaving a nominal shortfall of £12 to be made up. However, the actual amt your client would be expected to pay could be more (usually) or less, depending upon the mortgagee's interest rate.

The waiting period is dependent upon when the mortgage was taken out, ie before or on/after 2/10/95. The waiting period can be reduced if the client is a carer, or has been refused mortgage protection payments through certain pre-existing illnesses or HIV. DLA has no impact on the waiting period, but will increase the applicable amount, thus increasing IS contribution the mortgage costs. See the Disability Rights Handbook for further info.

Currently the standard rate used to calculate the amount of interest on a loan is set by reference to the Bank of England base rate.

This is currently 4.5% and to check on the latest figure see www.bankofengland.co.uk

See also the following rightsnet news stories -

Mortgage housing costs set by reference to the Bank of England base rate - New DWP guidance (31 December 2004)

Mortgage housing costs to be set by reference to the Bank of England base rate - New statutory instrument (4 November 2004)

This is something that confuses me also. Im quite clear on the applicable amounts/amount paid as IS for mortgage etc, what im unsure of, which you've pretty much answered is when a client applies for IB, and it is higher than their applicable amount for income support, but is only entitled to IS after the waiting period for housing costs / Disability Premium, i assume that the client has to apply for IS at that time, and the jobcentre will be aware of the waiting period the client has already satified?

am i making sense?