Mims Davies MP is pleased to support the Government's extension of mortgage support for benefit claimants.
- Support for Mortgage Interest loan scheme extended to 200,000 additional Universal Credit claimants in efforts to support more households with the cost of living.
- They will be able to access help towards mortgage interest on their home or certain home improvements worth up to £200,000 after three months on Universal Credit.
- Support will be automatically offered to qualifying claimants after three months on Universal Credit.
Previously, claimants would need to have been unemployed for nine months before they could access a Support for Mortgage Interest loan, which helps them cover interest payments for a mortgage, or a home repairs and improvements loan, whilst they seek work.
Today’s reforms, which were announced in the Chancellor’s Autumn Statement, mean claimants will be able to receive the support after just three months of being on Universal Credit, and in another change they now do not have to be unemployed to do so. They will also be able to re-claim the support if they leave Universal Credit but return within six months.
Support for Mortgage Interest loans will now be automatically offered to claimants by the Department for Work and Pensions (DWP) if they qualify after three months on Universal Credit – they do not need to do anything to receive this offer.
The loans are designed to help claimants with the interest on mortgages or loans for certain home improvements, such as repairs or improvements to keep their home habitable or to adapt them for people with disabilities, whilst they are on Universal Credit. Even if claimants reject the offer of a loan initially, as long as they are still eligible, they can start claiming it at any point.
Mims Davies MP said:
"The fear of losing your home when you have fallen on difficult times is incredibly stressful and makes getting back on your feet all the more difficult.
This increased support is an important lifeline to help provide stability for those who are seeking to find work and move back towards long-term prosperity."