DWP: Mortgage protection pay-outs excluded from means-testing

Adam Saville
clock • 3 min read

Income from insurance covering mortgage payments disregarded when entitlement to benefits assessed

Changes to State benefits covering mortgage payments during prolongued loss of income due to sickness will not lead to a mortgage protection pay-out being means-tested against benefit entitlement, a request for clarification from the Department for Work & Pensions (DWP) by the Building Resilient Households Group has revealed. The introduction of a Support for Mortgage Interest Loan (SMIL), which came into effect on 6 April 2018, increased the need for mortgage holders to consider protection in order to protect payments in the event of long-term sickness absence or due to other causes. Un...

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