3.15: It should be noted that the definition of mortgage interest refers to
"the purchase, repair or essential improvement of the sole or main residence of that person". For the purpose of entitlement to mortgage interest supplement complex issues arise where the property is jointly owned and the owners are:
- two or more single people who entered into an arrangement to purchase a property together;
- a married couple who are separating;
- a cohabiting couple where there has been a breakdown of the relationship.
3.16: Where there is more than one owner and each owner is residing in the property, payment of a mortgage interest supplement to the claimant may be considered subject to production of documentation verifying that the claimant has a liability and had been making mortgage repayments in respect of his or share of the property.
3.17: As a general principle, a person who is not residing in a property should not retain and accumulate a beneficial interest in that property at the State's expense. Therefore, it may not be appropriate to award a mortgage interest supplement to the claimant unless it can be confirmed that the person who is not residing in the property is continuing to meet his/her own personal liability for the monthly mortgage repayments.
3.18: Where one or more of the owners are not residing in the property enquiries should be made as to whether the parties had entered into a co-ownership agreement and a copy of the agreement and the loan approval should be requested in order to establish the claimant's liability for the mortgage repayments and the arrangements which have been made by the non-resident party or parties for mortgage repayments. If the non-resident party or parties have discontinued mortgage repayments and arrears have arisen, the claimant should be advised that s/he must consult and reach agreement with the lender in relation to the repayment of the mortgage before entitlement to a mortgage interest supplement can be considered.
3.19: In the case of a couple who are no longer living together a copy of the relevant documentation i.e. separation agreement or court order, as appropriate, should be requested in addition to other standard documentation. Where the property is the sole or main residence of the claimant, payment of a supplement may be considered having regard to arrangements which have been agreed or set down by the court in relation to the claimant's liability for mortgage repayments and future ownership of the property.
3.20 In the absence of an agreement, payment of a supplement may be considered where the property is the sole or main residence of the claimant and the claimants is making mortgage repayments subject to confirmation that the parties are engaged in negotiations in the matter. Where a supplement has been awarded on this basis, payment of the supplement should be subject to a review, no later than 12 months from the date of commencement, to clarify the position in relation the future ownership of the property.
3.21: Where a supplement has been in payment for 12 months and where;
- no agreement or decision has been reached in relation to the future ownership of the property, or
- arrangements for a buy out or transfer are not proceeding, consideration may be given, provided that all other statutory qualifying conditions of entitlement are satisfied, to the payment of a supplement subject to the condition that the value of the ownership rights and liability of the claimant's estranged spouse or partner, as appropriate, will be taken into account.