Housing costs with offset type mortgage

My client is on ibJSA and has an ‘offset’ type of mortgage where he can pay as much or as little as he can afford each month.  He was extremely vague to say the least (!) and brought no paperwork with him, but my understanding is that if he overpays, the amount the account is in credit by is knocked off the interest, wheras if he underpays the debit is added.  He did not seem to know how much he was supposed to pay or what the balance of the account is at the moment and I am waiting for him to supply paperwork.

He has been trying to get help with the mortgage and has had this refused previously although from what he said this was becasuse he had not supplied information on request rather than because he found to be not eligible as such.  Apparantly he appealed the decison and it went to a tribunal (paper hearing) but was upheld.

Does anyone know how this type of mortgage is treated by the DWP?

The same as other mortgages.

At the date of claim, or on the anniversary for continuing claims, the amount owing on the mortgage is assessed and the SMI is paid on the basis of that amount times the standard interest rate, 3.63% from memory.

If it’s a new JSA claim after January 09, it will run out after 2 years.

That’s great, thanks for the information.  Housing costs were never my strong point to start off with and i couldn’t find anything abiout this specific type of mortgage.