Query from a money advice colleague who is looking at the option of their client extending the interest only agreement with their bank for their mortgage.

Basic background: client has no means to pay off the mortgage, which was taken out for a new central heating system in 1999. Been paying by way of interest only (the endowment to pay the capital was sold a few years ago). Client has been warned that the mortgage full capital payment is due in Nov 08. DWP currently pay most of the interest payment as client on IS.

If client able to arrange an extension of the agreement just to pay interest (I am led to believe this is possbile), would DWP continue to pay the interest as they are currently doing?

Wed 12-Mar-08 08:45 AM by shawn

CPAG 2007/08 says in ch34 at p811 "if you take out a loan to pay for the repairs or improvements... (or to pay off an earlier loan taken out for this purpose) you might get help with this"

and at p812 under "Repairs and Improvements that qualify" lists "repairs to your heating system"

It references the regs behind both of these quotes at the end of the chapter.

If a renewed loan for improvements / repairs is indeed treated in the same way as a renewed loan for the cost of buying a house, there's further detail about that throughout ch 34.