Mortgage Interest Supplement - can't claim if your house is For Sale

Hi,
I wouldn't imagine I am the only person in this situation! My house is For Sale, I am in arrears, and need to claim MIS. However, one condition that must be satisfied before you will receive MIS, is that the house cannot be up for sale. Surely, many people who are in need of MIS, do indeed have their house up for sale?? The Mortgage Expert Group, over a year ago, recommended that this no longer be a condition that had to be satisfied, and of course, there has been no change. Anyone else in this situation?

Never realised that. Sounds irrational!

Not sure what their reasoning for it was in the first place! But now, you know yourself, the Expert Group made a "recommendation", and according to one politician which I contacted, their guess is end of 2012 before some recommendations are made!!

The qualifying condition is that the house cannot be up for sale at the time MIS is applied for.

The house can be placed for sale at a later stage, after the MIS application is made and decided on.

gipimann said:

The qualifying condition is that the house cannot be up for sale at the time MIS is applied for.

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Click to expand...

Wonder what is the logic behind that rule?

Anyway it's clear OP has to take house off market, apply for MIS and then once he gets it put house back up for sale.

It has been in the legislation for many years, and dated from a time when the likely sale price of a house would have cleared the outstanding mortgage.

In such cases, SW (who set the legislation) decided that paying MIS in respect of a mortgage that was going to be cleared wasn't appropriate.

Obviously the situation has changed, but the legislation hasn't yet been updated.

Thanks as ever Gipimann for the explaination which makes sense. Hopefully it will be changed soon to reflect current circumstances.