Mortgage allowance running out.

Media999

I need some mortgage advice for a relation please. 45 years old. Motgage just under 1000 a month with about 100k left.

They have been getting mortgage allowance for the past 4 years which can last 7 1/2 years. They are in building work so theres no hope of work realistically when it runs out. 2 grown up unemployed kids and 4 young kids in school.

They have a mortgage that was used to build there own house on there own land. So i assume they own the land but bank owns the house.

They have about 1/2 the mortgage paid off. They have no arrears as mortgage is always the first thing paid off.

When the mortgage allowance gets cut off they will likely go into arrears with no way out. What can happen then?

unkel

I presume you mean Mortgage Interest Supplement? (Mortgage allowance is for people who bought their council house they used to rent)

Afaik there is no time limit on Mortgage Interest Supplement. Where did you get the 7.5 year limit?

Media999

Thats what they said. Maybe i understood them wrong. They definitely believe there is a 7.5 year limit on whatever they are getting.

just googled and came up with this from here

"For a mortgage taken out between 1 January 2004 and 31 December 2012, your entitlement to relief will continue until the end of 2017"

Maybe thats what theyre talking about?

caprilicious

Could it be the TRS that runs out then? (Tax relief at source).
It's a tax deduction on the mortgage repayment, but it wouldn't be a huge amount.
If they're struggling they're best off engaging with their lender, explain their situation & they might be able to amend their repayments so they're more affordable.

unkel

Media999 wrote: »

Thats what they said. Maybe i understood them wrong. They definitely believe there is a 7.5 year limit on whatever they are getting.

just googled and came up with this from here

"For a mortgage taken out between 1 January 2004 and 31 December 2012, your entitlement to relief will continue until the end of 2017"

Maybe thats what theyre talking about?

No, that is the income tax relief. Get back to them and clarify and someone here might be able to help you

Media999

Its not me so ill have to ask them and get back here.

Thanks