Shaking - the state would pay because it is cheaper than rehousing someone or paying their rent for them. It's to help people who fall on hard times.
There is no specific limit or cap on Mortgage Interest Supplement payments, however there are some criteria which are taken into account (see the Rules listed on the page which Welfarite linked to). In some areas the "reasonable interest" level is compared with the maximum rent limit which applies.
By way of example, here is how it's calculated. Assume that the interest supplement is being granted on the figure you mentioned (€890 per month), the only income is Jobseeker's Benefit or Assistance, and there are no savings or other property.
JB / JA is the same as the basic Supplementary Welfare Allowance rate, so there is no excess income. *
Weekly Interest = 890 x 12/52 = 205.38
Minimum Contribution = 18 (2009 rate)
Mortgage Interest Supplement entitlement = 205.38 - 18 = 187.38 per week.
It is usually paid calendar monthly and would equate to €812
* If a person was receiving a SW payment which was greater than the SWA rate, the difference between the two rates would also be subtracted from the weekly interest, so the supplement paid would be less.
what is the maximum rent limit....how long does this go on for, how many weeks will the state pay this?
really? €812 a month is not an inconsiderable amount of money. what is the maximum rent limit.
so the mortage when it reverts to full capital repayment will be less than €478 per month? so for a 210K mortgage this person will pay €119 a week.
how long does this go on for, how many weeks will the state pay this?
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