The purpose of Mortgage Interest Supplement is to provide short term income support to eligible people who are unable to meet their mortgage interest repayments in respect of a house which is their sole place of residence. The supplement assists with the interest portion of the mortgage repayments only.
Under standard SWA rules, Mortgage Interest Supplements are normally calculated to ensure that a person, after the payment of mortgage interest, has an income equal to the rate of SWA appropriate to their family circumstances less a minimum contribution, currently €13, which recipients are required to pay from their own resources. Many recipients pay more than €13 because they are required also, subject to income disregards, to contribute any additional assessable means that they have over and above the appropriate basic SWA rate towards their accommodation costs.
Since June 2007, where a person has additional income in excess of the standard weekly rate of supplementary welfare allowance, the first €75 of such additional income together with 25% of any additional income above €75 is disregarded for means assessment purposes.
In determining entitlement to mortgage interest supplement, the Executive must be satisfied that the amount of the mortgage interest payable by the claimant does not exceed such amount as it considers reasonable to meet his or her residential and other needs. In exceptional circumstances, the Health Service Executive may award a supplement where the amount of mortgage interest payable by a person exceeds such amount as the Health Service Executive considers reasonable to meet his or her residential and other needs in general such supplement is paid for a maximum of 12 months from the date of the claim.
Subject to a person meeting the qualifying conditions of the scheme, there are a number of factors that would affect the amount of mortgage interest supplement payable in any case including: the size of the mortgage and the amount of mortgage interest payable; the earnings of the spouse and its impact on the amount of jobseekers benefit payable in respect of a qualified adult; the number of hours per week worked: mortgage interest supplement is not payable where a member of the household works for 30 or more hours per week; whether the Executive considers the amount of mortgage interest to be reasonable.
It is therefore not possible to provide a meaningful maximum or minimum amount of mortgage interest supplement that could be payable. However, an example is set out in the attached tabular statement, based on a person paying €200 per week in mortgage interest. The tabular statement sets out the amount of mortgage interest supplement that would be payable where a spouse of a person receiving jobseekers benefit engages in employment at the minimum wage at up to 29 hours per week. This shows that as household income increases, the amount of mortgage interest supplement payable is reduced, but at a slower rate so that the household is financially better off as the income from employment increases.
Mortgage Interest Supplement Entitlement for a Married Couple with No Children Based on Hourly Minimum Wage Rates and Mortgage Interest of €200 per Week
Claimant
|
Qualified Adult
|
Hours of Employment Per Week
|
Qualified Adults Earnings from Employment
|
Income from Employment and Jobseeker’s Benefit
|
Total Income — Wages, JB+ MIS
|
Total Contribution to Mortgage Interest Supplement
|
Mortgage Interest Supplement
|
Increase in Net Income after Mortgage Interest is paid
|
197.80
|
131.30
|
1
|
8.65
|
337.75
|
524.75
|
13.0
|
187.00
|
8.65
|
197.80
|
131.30
|
2
|
17.30
|
346.40
|
533.40
|
13.0
|
187.00
|
17.30
|
197.80
|
131.30
|
3
|
25.95
|
355.05
|
542.05
|
13.0
|
187.00
|
25.95
|
197.80
|
131.30
|
4
|
34.60
|
363.70
|
550.70
|
13.0
|
187.00
|
34.60
|
197.80
|
131.30
|
5
|
43.25
|
372.35
|
559.35
|
13.0
|
187.00
|
43.25
|
197.80
|
131.30
|
6
|
51.90
|
381.00
|
568.00
|
13.0
|
187.00
|
51.90
|
197.80
|
131.30
|
7
|
60.55
|
389.65
|
576.65
|
13.0
|
187.00
|
60.55
|
197.80
|
131.30
|
8
|
69.20
|
398.30
|
585.30
|
13.0
|
187.00
|
69.20
|
197.80
|
131.30
|
9
|
77.85
|
406.95
|
591.81
|
15.14
|
184.86
|
75.71
|
197.80
|
131.30
|
10
|
86.50
|
415.60
|
593.98
|
21.63
|
178.38
|
77.88
|
197.80
|
131.30
|
11
|
95.15
|
424.25
|
596.14
|
28.11
|
171.89
|
80.04
|
197.80
|
125.90
|
12
|
103.80
|
427.50
|
596.95
|
30.55
|
169.45
|
80.85
|
197.80
|
120.50
|
13
|
112.45
|
430.75
|
597.76
|
32.99
|
167.01
|
81.66
|
197.80
|
114.20
|
14
|
121.10
|
433.10
|
598.35
|
34.75
|
165.25
|
82.25
|
197.80
|
114.20
|
15
|
129.75
|
441.75
|
600.51
|
41.24
|
158.76
|
84.41
|
197.80
|
107.90
|
16
|
138.40
|
441.10
|
601.10
|
43.00
|
157.00
|
85.00
|
197.80
|
101.60
|
17
|
147.05
|
446.45
|
601.69
|
44.76
|
155.24
|
85.59
|
197.80
|
95.30
|
18
|
155.70
|
448.80
|
602.28
|
46.53
|
153.48
|
86.18
|
197.80
|
89.00
|
19
|
164.35
|
451.15
|
602.86
|
48.29
|
151.71
|
86.76
|
197.80
|
82.70
|
20
|
173.00
|
453.50
|
603.45
|
50.05
|
149.95
|
87.35
|
197.80
|
76.40
|
21
|
181.65
|
455.85
|
604.04
|
51.81
|
148.19
|
87.94
|
197.80
|
70.10
|
22
|
190.30
|
458.20
|
604.63
|
53.58
|
146.43
|
88.53
|
197.80
|
70.10
|
23
|
198.95
|
466.85
|
606.79
|
60.06
|
139.94
|
90.69
|
197.80
|
63.80
|
24
|
207.60
|
469.20
|
607.38
|
61.83
|
138.18
|
91.28
|
197.80
|
57.50
|
25
|
216.25
|
471.55
|
607.96
|
63.59
|
136.41
|
91.86
|
197.80
|
51.20
|
26
|
224.90
|
473.90
|
608.55
|
65.35
|
134.65
|
92.45
|
197.80
|
44.90
|
27
|
233.55
|
476.25
|
609.14
|
67.11
|
132.89
|
93.04
|
197.80
|
38.60
|
28
|
242.20
|
478.60
|
609.73
|
68.88
|
131.13
|
93.63
|
197.80
|
32.30
|
29
|
250.85
|
480.95
|
610.31
|
70.64
|
129.36
|
94.21
|