# Refused Mortgage Interest Supplement



## MarchLily (13 Jan 2010)

I applied for MIS after being made redundant in November '09. I got a letter today from the CWO saying that my application was refused. She included a form with the letter, detailing how she arrived at that conclusion and to be honest, I find it hard to figure it out.

I'd really appreciate if someone could explain the calculation they use for it, so that I can understand it in my head. I really hoped that I'd get it as it would make life far easier for me. At the rate things are going, I'd nearly be better off selling the house and getting rent allowance - crazy as that may seem. 

My income per week is as follows:

OPFP - €158 (was on reduced rate whilst working and hasn't been adjusted as yet)
JSB - €76.80 (based on stamps until Sep '10)
Maintenance - €120 

The mortgage interest is €59 per week, current actual mortgage payments are €505 per month. 

Apologies if this question has been asked in another thread. 
TIA


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## gipimann (14 Jan 2010)

Your total assessable income is 158 + 76.80 + the first 95.23 of your maintenance (the remainder of your maintenance is disregarded).

This gives a total of - 330.03 pw.

You don't say what your family size is, I'm guessing one child from the amount of OFP you're receiving.

The SWA rate for 1 adult & 1 child is 196 + 29.80 = 226.60

Your income in excess is 330.03 - 226.60 = 103.43pw.

As this amount is greater than your mortgage interest, you do not qualify.

The general calculation for mortgage interest supplement can be found in a sticky post at the top of this forum.

There is no guarantee that you would qualify for Rent Supplement, if you chose to go down that route as you suggested.


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## Setanta12 (14 Jan 2010)

Question - when applying for MIS, is your bank informed ?


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## ali (14 Jan 2010)

Setanta12 said:


> Question - when applying for MIS, is your bank informed ?


 
If you mean your lender then yes, you must get them to stamp the relevant forms in relation to outstanding amount, interest rate, arrears etc. There is no reason for your bank to know if it is not your lender.
A.


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## mcb (14 Jan 2010)

Gipimann

I had started another thread on my MIS being stopped and in the letter I got I was confused about the figure that was stated in the letter in relation to the maximum amount that can be taken into account for mortgage interest repayments.  I thought that it would be adult dependant of €196.00 plus 3 children €29.80 x 3 which would be €285.40pw.  Whereas in the letter they state it is €256.15pw.  When I queried this I was told that they do not use the figure that I thought but what my actual rent level is (ie, if I and my 3 children were renting and in receipt of rent allowance). Rent allowance for me would be €1110.00pm.

I see in your reply on this thread you also think that it should be calculated the way I thought and as stated on SW website.

Another confusion for me!!!


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## gipimann (15 Jan 2010)

mcb,

I think you're confusing 2 different figures.

The maximum amount that can be taken into consideration when calculating MIS is either the interest portion of the repayment or, if that is not considered "reasonable" (as per the guidelines I quoted in the other thread), an amount that is considered reasonable given your family size and location.   "Reasonable interest" is not quantified in legislation, however, in practice, the maximum rent limits may be used, which is what appears to have happened in your situation.    

This is not the same as the payments in respect of adult & child dependants.


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## Bronte (15 Jan 2010)

gipimann said:


> + the first 95.23 of your maintenance (the remainder of your maintenance is disregarded).
> 
> .


 
This doesn't make sense, what if your maintenance was 1K a week?  Surely it should be the other way around and the first x amount of maintenance should be ignored and the remainder taken into account.


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## gipimann (15 Jan 2010)

Bronte,
The quoted comment regarding assessment of maintenance was specific to the figures provided by the poster.

The full rule is -

First 95.23 of maintenance is assessed in full.   
The next 75 euro of maintenance is disregarded in full.
75% of maintenance over 170.23 is assessed.


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## mcb (15 Jan 2010)

Gipimann

If I provided you with the details of my income etc would you do me the favour of calculating the figures to see if you come up with the same thing as the SW have?

Thanks


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