Written answers

Tuesday, 23 October 2012

Department of Social Protection

Mortgage Interest Supplement Eligibility

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Social Protection if he will outline the rules and regulations associated with the mortgage interest supplement and in particular the way the reasonable housing costs figure is reached and the other factors that are taken into account when determining if an applicant is granted the payment or not. [45830/12]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
Link to this: Individually | In context | Oireachtas source

Mortgage interest supplement (MIS) provides short-term income support to eligible people who are unable to meet their mortgage interest repayments in respect of a house which is their sole place of residence. There are currently approximately 16,000 mortgage interest supplement recipients for which the Government has provided €51 million for in 2012.

The amount of MIS payable is the difference between the actual mortgage interest and the customer’s contribution to mortgage interest, provided that the difference between the two is a reasonable amount to meet the customer’s residential needs. Under the rules governing mortgage interest supplement, it is a condition of entitlement that the amount of the mortgage interest payable by the claimant does not exceed what the Department’s representative considers reasonable to meet his or her residential needs.

Departmental guidelines state that in determining what is considered reasonable to meet a customer’s residential needs regard should be made to the appropriate maximum rent limits applicable to the family composition and location of the residence. Under the rules governing entitlement to the scheme a person may be entitled to a supplement towards the amount of mortgage interest payable in respect of his or her residence provided that:

- the supplementary welfare allowance means test is satisfied

- the applicant has at the time of application engaged with their mortgage lender in order to meet their mortgage repayment obligations, and has entered into and complied with an alternative repayment arrangement for a period of not less than 12 months

- the loan agreement was entered into at a time when, in the opinion of the Department’s representative, the person was in a position to meet the repayments

- the residence in respect of which the loan is payable, is not offered for sale

- only the portion of the loan that relates to the essential purchase, repair or maintenance of the property is taken into account

- the applicant is habitually resident in the State

- the amount of the mortgage interest payable by the claimant does not exceed such amount as the Department’s representative considers reasonable to meet his or her residential and other needs

- it is reasonable to award a supplement having regard to the amount of any arrears outstanding on the loan. In exceptional circumstances, the Department’s representative may award a supplement where the amount of mortgage interest payable by a person exceeds such amount as the Department’s representative considers reasonable to meet his or her residential and other needs. Such supplement is payable for a maximum of 12 months from the date of the claim.

- the applicant or their spouse/civil partner/cohabitant is not engaged in full time employment, defined as more than 29 hours a week (subject to exceptions)

- the applicant is not; involved in a trade dispute/engaged in full time education (subject to exceptions)/unlawfully in the State/admitted to an institution for a period of in excess of 13 weeks

- the applicant has not made; an application for asylum under the Refugee Act, 1996 and such application is awaiting final decision by the Minister for Justice and Equality or an application under the Aliens Act, 1935 to remain in the State and such application has not been determined
Full details on the scheme are available on the Department’s website at .

Comments

No comments

Log in or join to post a public comment.