Payment Protection Insurance

If you become unemployed, have an accident, or are too sick to be able to work, you should check whether you have a payment protection policy. If you took this out with ourselves please contact us on 0845 076 0878 to discuss whether you may be entitled to make a claim. This type of insurance would usually have been taken out at the same time as your secured loan/mortgage and, if you have an eligible claim, will cover your repayments up to a period of 12 months or sometimes more. There are also state benefits and schemes available which could assist you. It is worth seeking advice on whether you are eligible for any of the schemes or benefits listed below:

Changes to Income Support for Mortgage Interest (ISMI)

Recent changes to Income Support for Mortgage Interest mean that homeowners who have lost their jobs can claim in respect of their first mortgage after 13 weeks instead of 39 and for up to the first £200,000 of their mortgage. The scheme covers mortgage interest payments for those who have lost their jobs and who are on means tested benefits, such as income support, jobseekers allowance or income related employment and support allowance.

You cannot claim if you work 16 hours or more per week, or your partner works 24 hours or more, or if you have savings of over £16,000. The purpose of the mortgage must have been for the purchase of your home or for work carried out to maintain the property’s fitness for occupation. In addition to mortgage interest, ISMI may also cover ground rent or certain service charges.

If you believe you are entitled to make a claim, visit the Jobcentre Plus website (www.jobcentreplus.gov.uk) or phone 0800 055 6688.

Jobseeker’s Allowance

Jobseeker’s Allowance (JSA) is an unemployment benefit for people who are actively seeking work. Assistance with housing costs is available if you are receiving income-based JSA. The rules concerning housing costs are virtually the same as for those claiming ISMI (see above). You can obtain JSA information leaflets and claim forms by telephone, by letter or in person at your local Jobcentre Plus office, or phone 0800 055 6688.

Pension Credit

State Pension is a benefit for people who have reached the age of 60, have a relatively low pension income, and have paid or been credited with National Insurance contributions. Help towards housing costs is available from the outset of a claim and is calculated using the standard interest rate and the outstanding mortgage balance. The rules are broadly similar to those for ISMI/JSA for housing cost payments. You can obtain further information and claim forms from the Pension Service website (www.thepensionservice.gov.uk), your local pension centre, or by phone on 0800 99 1234.

Other benefits & tax credits

Working Tax Credit and Child Tax Credit are administered by Her Majesty’s Revenue and Customs (HRMC). Please see the HMRC website (www.hmrc.gov.uk/taxcredits) for further information or call 0845 300 3900.

The Council Tax Benefit is available to help people on a low income with their council tax bills. For further details visit the Jobcentre Plus website (www.jobcentreplus.gov.uk) or your local authority.