Mortgage Interest and income support

mummytofour

Op just got to say that there is at present a 39 week wait UNLESS you are a special case, for example a carer...

zappster1966

This can't have come soon enough, imho, although I'm still at a loss to explain why they haven't simply brought the waiting period down to four weeks (most folks pay their mortgage a month upfront, after all). 13 weeks sounds much better than 39. But factor in the admin delays & the fact your mortgage is paid by DWP four weeks in arrears and you're reasonably talking about a delay of anything up to 20 weeks, by which point you've already started receiving nasty letters, phone calls & charges. And being the best part of four or five months behind when ISMI kicks in you'll already find yourself running to stand still & having to pay arrears from your own personal benefits.

I think the Govt should also have got something off the lenders for this too. Cos the banks etc are just sitting back & rubbing their hands with glee. The agreement regarding non repossession while on ISMI should have been really toughened up, many folks facing repo don't know there's an agreement between the Govt & the Council of Mortgage Lenders, supposedly to prevent or minimise the possibility of repossessions. But I've never yet seen an instance where the government, through the DWP, have intervened & insisted the the agreement be invoked for an individual borrower. As it remains today the agreement is basically worthless, just hollow words.

Capping the help to 2 years for those on JSA may seem reasonable, but it introduces to the social security one of the first instances of time barring part of your benefit entitlement ... if they can do it with JSA & mortgages, how soon until they time bar something else ? Your service charges, your childrens allowances or even your benefit itself ? Some might see that as a good thing, right enough, a touch of the US welfare system being introduced here.

I kinda see it at the moment as a very dangerous precedent.

mummytofour

Time barring is harsh they are already bring it in with IS not being paid to single parents with children over the age of 7 as from October.

I would like to know if the 175k rule will apply to those already in receipt of ISMI or only for new applicants? For example say you have a 175k mortgage and you are currently having to find the remaining payment yourself as of April will the ISMI rise to cover the whole mortgage cost?The wait until April maybe too late for many, it should be from now.

Oh well lets see what the go are going to do next with with regards to fuel prices?

bigbill

mummytofour wrote: »

Time barring is harsh they are already bring it in with IS not being paid to single parents with children over the age of 7 as from October.

Where did you see this as I thought it was over 12's?

[Deleted User]

bigbill wrote: »

Where did you see this as I thought it was over 12's?

must admit so did I,they are eventually reducing it to 7 but from october its still 12:j

MRS_TO_BE_2

The rush info we have had issued to us today indiactes that new rules apply to new claims from 1.04.09. However claims prior to this will still be subject to normal rules including 100,000 mortgage limit.

Already we are asking how is this fair? Hopefully this will be recified to ensure it is fair!

zappster1966

MRS_TO_BE wrote: »

The rush info we have had issued to us today indiactes that new rules apply to new claims from 1.04.09. However claims prior to this will still be subject to normal rules including 100,000 mortgage limit.

Already we are asking how is this fair? Hopefully this will be recified to ensure it is fair!

I'm sure the teenage scribblers at the DWP are already thrashing out the ways & means by which they can get this government initiative to work. Once that's done the legislation will have to be prepared & set on its course through Parliament.

I'd reckon if you're at or past the 13 week stage by April 2009 you'll get help from then onwards. Similarly if your mortgage has been capped at £100,000 they'll apply the higher limit, if appropriate, at that point.

They'll have to do that from an admin point of view, if nothing else, otherwise folks will be cancelling their claims under the old set of rules & re-applying the next day under the new rules.

Quite how they'll treat those who have been on JSA & getting help with their mortgage for 2 years already, by the time April 2009 comes, remains to be seen.

Paul08

See attached link on dwp website

http://www.dwp.gov.uk/aboutus/news/

Does suggest that the support will only apply to "new working age claims" as from April. Would be a travisty if it did as it would create a two tier system. It also suggests the increased limit will only be temporary.

Fact that gov. has not made it clear who will benefit from this is terrible. I suspect a lot of people will be getting their hopes up - only to have them dashed later.

MRS_TO_BE_2

We have been discussing this in work and we were saying the same. Its already being discussed on a inhouse forum and the upper echelons are aware of what we think.....lets hope common sense prevails otherwise yes it would be a travisty.

cw18

Only just found this thread, and wanted to say thanks for the information. I hadn't heard about the changes, but it could make a huge difference to us.

I've been issued my redundancy notice, so will be unemployed from 26th November. But my pay-off means we can't claim IS until September 2009 (I won't be looking for work, as I'm going to become hubby's registered carer instead). I thought we would them have to wait until June 2010 for mortgage assistance, but this reduction in 'waiting period' means it'll come due at the start of December 2009 instead

Although if I'm acknowledged as his carer (which I should be) we would currently be treated differently under the current rules anyway -- nothing for 8 weeks, then half for 18, and up to full rate at 26 weeks.

But the announcement doesn't seem to differentiate between 'existing borrowers' and 'new borrowers' (was based on date of taking out the mortgage - and we're post 1st Oct 1995 so would have been 'new' without the carer exception, and less than £100k so the increase doesn't help us but I'm pleased to see it there)