Support for Mortgage Interest Discussion Area

detryst

After working for 40 years my husband lost his job and had to sign on.... However as he gets a small pension of £628 a month from a previous job he is not entitled to any Jobseekers allowance as this puts his income a few pounds above what he would get on Jobseekers, the problem here is that as he is not entitled to jobseekers he is not entitled to any mortgage interest payments either so he is being penalised for paying into a pension... So as a result we are going to lose our house because he has worked.... If he had not bothered with a pension the government would now be helping us with our mortgage interest payments and we would be better off by nearly £200 a month.... And there is absolutely nothing he can do to get them to help us, it was his own fault for taking out a pension....

Sue142

Help. I got made redundant in May 2013. Only entitled to Jsa . Advised that they would consider payment of mortgage interest only after 13 weeks. Managed to keep up payments from redundancy for a while but have been in arrears since September. Have finally received confirmation that JSA will pay £28 per week towards mortgage interest. This is not enough. I have been told that because I remortgages ten years ago to clear debts, they will only pay interest on the original mortgage. No idea if this is right. What can I do. With other bills etc, can't manage to pay more out of £71.90 per week.

bloolagoon

Sue142 wrote: »

Help. I got made redundant in May 2013. Only entitled to Jsa . Advised that they would consider payment of mortgage interest only after 13 weeks. Managed to keep up payments from redundancy for a while but have been in arrears since September. Have finally received confirmation that JSA will pay £28 per week towards mortgage interest. This is not enough. I have been told that because I remortgages ten years ago to clear debts, they will only pay interest on the original mortgage. No idea if this is right. What can I do. With other bills etc, can't manage to pay more out of £71.90 per week.

Yes that's correct, they pay your original loan amount. You can speak to your lender if this will cause issues.

Is there equity if you need to sell?

BigAunty

Sue142 wrote: »

Have finally received confirmation that JSA will pay £28 per week towards mortgage interest. This is not enough. I have been told that because I remortgages ten years ago to clear debts, they will only pay interest on the original mortgage. No idea if this is right. What can I do. With other bills etc, can't manage to pay more out of £71.90 per week.

Shelter has a helpline for distressed homeowners and advice on how to avoid repossession and how to deal with mortgage arrears.

Also, see here

http://www.moneysavingexpert.com/mortgages/mortgage-arrears-help

Sprintblue

Sue142 wrote: »

Help. I got made redundant in May 2013. Only entitled to Jsa . Advised that they would consider payment of mortgage interest only after 13 weeks. Managed to keep up payments from redundancy for a while but have been in arrears since September. Have finally received confirmation that JSA will pay £28 per week towards mortgage interest. This is not enough. I have been told that because I remortgages ten years ago to clear debts, they will only pay interest on the original mortgage. No idea if this is right. What can I do. With other bills etc, can't manage to pay more out of £71.90 per week.

How on earth did they find out about the re-mortgage to pay off debts ... looks like this stuffed you. Bottom line your house is at risk and a bit of common sense should be applied to this. The support is suppose to help you ... Grrrrr Try speak to your MP or get a case review you never know your luck.


For me that actually OVER paid my interest as I was on a fixed rate which was lower than their 'set' rate and I even queried this!

nannytone_2

involving their MP or getting a reciew will do nothing.
only the onterst on the original borrowing will be considered.
to ask 'why did you tell them' is ridiculous. not telling them and trying to claim for the whole amount would be fraud.

if they p[aid the interest on re mortgages, then every SMI claimant would be remortgaging and getting benefit to pay for their borrowing!

jacques_chirac

Sprintblue wrote: »

How on earth did they find out about the re-mortgage to pay off debts ... looks like this stuffed you. Bottom line your house is at risk and a bit of common sense should be applied to this. The support is suppose to help you ... Grrrrr Try speak to your MP or get a case review you never know your luck.


For me that actually OVER paid my interest as I was on a fixed rate which was lower than their 'set' rate and I even queried this!

They find out because you have to declare it on the form! Bottom line is that the circumstances in which SMI can be paid are laid down in law, a case review is not going to change this.

lld01

Sprintblue wrote: »

How on earth did they find out about the re-mortgage to pay off debts ... looks like this stuffed you.

Because both the customer and lender are required to provide the purpose of the borrowing.

Stating it was borrowed for something it wasn't would be fraudulent

Mishy123

Q1: If I receive pension credit and the mortgage value is less than £100,000 do I receive the SMI in full 100% ? or is it Means tested so that the more company pension I have coming in monthly makes me eligible for a small portion of the total mortgage interest?

Q2: I am 60 years old and still in full time employment. I am not due state pension until I am 63. If I choose to retire now and live off my company pension can I claim pension credit?

Q3: If I choose to retire now when I have the option to continue working will I be able to claim jobseekers allowance?


sorry for going off topic from my original SMI question.

Mishy123

detryst wrote: »

After working for 40 years my husband lost his job and had to sign on.... However as he gets a small pension of £628 a month from a previous job he is not entitled to any Jobseekers allowance as this puts his income a few pounds above what he would get on Jobseekers, the problem here is that as he is not entitled to jobseekers he is not entitled to any mortgage interest payments either so he is being penalised for paying into a pension... So as a result we are going to lose our house because he has worked.... If he had not bothered with a pension the government would now be helping us with our mortgage interest payments and we would be better off by nearly £200 a month.... And there is absolutely nothing he can do to get them to help us, it was his own fault for taking out a pension....

In this example if the monthly pension payments were a bit smaller (so that Job seekers allowance could be claimed), would the SMI payments cover the mortgage interest in full? or would the government pay a small percentage of the mortgage interest?
and arrears would therefore build up.