Mortgage Costs
Outgoings in respect of Mortgage Costs are allowable. Loans have to be for the
purchase, essential repair or necessary improvement of the main residence or in paying
off another loan used for such purpose.
The assessment should allow the full weekly/monthly mortgage payment secured against
the principal family home and the following outgoings:
- Mortgage protection premia.
- Life Assurance premia in relation to mortgage protection.
- Fire and contents insurance premia.
- Loan repayments associated with home improvements/repairs
Evidence of payment of all of the above outgoings must be provided by the applicant to
have them taken into the means assessment. Documentary evidence from the mortgage
provider as to the purpose of the mortgage/loan may be requested from the applicant from
time to time.
If a Mortgage/Loan is in respect of 2nd house, holiday home abroad etc., then this should
be allowed as set out above but the value of the property must be assessed under
“Property (other than family home)” Section 3.6 of this document.