Accessing assistance and benefits for Help to Buy mortgage repayments

Posted 29 February 2016 by Keith Osborne

What happens to Help to Buy mortgage holders if they suddenly rely on state benefits for their income?

Help to Buy may be a way of getting on to the property ladder but it's no guarantee you'll stay there. Unexpected events can mean you're soon struggling to keep up with the mortgage repayments.

Yet, if that should happen with you, there is financial help and benefits you can access. Here's some information about where you can get assistance with your Help to Buy mortgage repayments should you need it. 

Get in touch with your lender

There is no significant difference between a Help to Buy mortgage and a 'traditional' mortgage when it comes to financial help you can receive. So, first of all, in the event of having problems regarding your Help to Buy mortgage repayments, get in touch with your lender. They can help you with Help to Buy repayments by extending your mortgage term or reducing your monthly payments. They could also, temporarily, accept interest-only payments. However, remember that one or more of these actions could increase the cost of your mortgage overall. 

Support for mortgage interest

If you're already receiving an income-based benefit, such as Income Support or income-based Jobseekers Allowance, then you may be able to obtain additional help with paying your mortgage. Support for Mortgage Interest, as the name suggests, gives financial assistance towards mortgage interest payments. You'll get help with interest payments on up to £200,000 of your Help to Buy mortgage or loan. 

Wales and Scotland

There are other schemes available in Wales and Scotland. In Wales, the Mortgage Rescue scheme is operated by councils and housing associations. It involves your social landlord buying a stake in your home or buying it completely then renting it back to you. As such you need to contact your own local authority to be considered for the scheme.

In Scotland, the Mortgage to Shared Equity scheme sees the Scottish government buying part of your property whilst you still maintain it and carry out repairs if and when necessary. The Mortgage to Rent scheme meanwhile, like the Mortgage Rescue scheme, sees a social landlord buy the property then rent it back to you. 

Get in touch with a financial advice centre 

There are a number of charity organisations, such as Citizens Advice and Turn2Us that can give you essential and more in-depth information regarding financial assistance and benefits you can receive regarding Help to Buy mortgage repayments.

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