Mortgage interest loans

CPAG

From 6 April 2018, repayable loans replaced the previous benefit support for mortgage interest on certain loans secured on a client’s home. Clients getting IS, income-based JSA, income-related ESA or pension credit (PC) can qualify for a loan. The loans can cover the interest on mortgages or other payments used to purchase a home, or the interest on a loan to pay for specified repairs or improvements.

A client should be advised to seek independent financial and legal advice before taking out a loan for mortgage interest.

The loans attract interest, which will continue to accumulate until the loan is paid or written off.

Clients may still be able to get an amount for housing costs included in their benefit for service charges, ground rent, co-ownership schemes or certain types of rent.

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Debt Advice Handbook Scotland 1st ed - with new material

Written in partnership with Citizens Advice Scotland, CPAG is delighted to announce the first edition of the Debt Advice Handbook Scotland. Based on CPAG’s best-selling Debt Advice Handbook, it details the stages of the debt advice process in Scotland and the key skills needed to give good advice. No money adviser should be without this essential guide.

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Fully indexed and cross referenced to law, official guidance and to court and tribunal decisions, tactical guidance and examples are included throughou

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CPAG

This content was last updated:2024-10-22

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