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If you are paying off a mortgage and you are on remand, you may be able to get help with your repayments.
This help will be limited to the interest part of your mortgage repayments and can only be paid for a limited period of time. There are two possible schemes that you may be able to access for help with your mortgage:
Support for mortgage interest (SMI)
If you were receiving income support, income-based jobseeker’s allowance, income-related employment and support allowance or pension credit before you were placed on remand, you may be able to claim support for mortgage interest.
This can be paid to you for up to 52 weeks, but only while you are on remand. If your remand status changes and you are given a sentence, you will not be entitled to support for your mortgage interest.
There is a waiting period of 13 weeks for payments of SMI and you will need to cover your mortgage without relying on this scheme until payments start. This can leave a significant shortfall and you may still need to ask your mortgage provider to reschedule the payments to take account of your situation.
Full details of the Support for mortgage interest scheme are available on Help to pay mortgage interest page in Debt advice section of the main website.
Homeowners mortgage support (HMS)
The Homeowners mortgage support scheme is available to households that experience an “income shock” or temporary loss of income, such as a job loss or reduced hours, and are unable to meet their monthly mortgage repayments.
Homeowners mortgage support enables you to postpone part of your interest payments for up to two years. The money postponed is added on to the remaining balance of your mortgage, so you will have to pay it back once you recover from the income shock.
In order to be considered for this scheme, you will need to prove that you can get your finances back on track reasonably quickly and will be expected to contribute at least 30% of your monthly mortgage interest.
There is a strict set of criteria in place for assessing eligibility for Homeowners mortgage support. Even if you are found ineligible, your partner or members of family living in your home while you are in prison, may be able to claim this help.
What else can I do about my mortgage?
Arrears can easily accrue if you fail to meet your mortgage payments. If you’re struggling to keep up, you could try asking your lender to defer your payments until your release. This is known as “payment holiday”. Alternatively, you could try asking your lender to agree to an alternative payment plan or lengthen the term of your loan.
It is very important that you talk to your lender as soon as you know you won’t be able to meet the repayments. Ask for professional advice through your prison adviser if you are concerned about mortgage arrears.
Help with other housing costs
Homeowners who are in prison may also qualify for help with their rates. You will only be able to request rates relief for 52 weeks if you are on remand, or for 13 weeks if you are sentenced and your total time in prison does not exceed this period.
If you expect to be absent from your home for a considerable time and would not qualify for rates relief, you may be able to request suspension of your rates charges from Land & Property Services until you return to your home.
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