Support for Mortgage Interest Discussion Area

littlestars

The smi element of my income support is due to kick In start sept. Not had a letter or anything but being a lone parent to two under 5s I know I qualify.

Two things really

First mortgage comes out on last day each month will it be paid fortnightly like income support in arrears?

My mortgage company say they receive it directly. But the amount is less than payment due. Do I need to do anything or will the mortgage company work it out?

Horseunderwater

It's normally paid to your lender direct every 4 weeks in arreras & covers 3.63% of your interest only. You still need to pay any interst + capital over & above that. Mine worked it all out sent me a letter letting me know my new debit rate. which taken on the 1st of eaxh month. The delays often seem to be slow form filling by lender & sending back to DWP. Santander did mine in 2012 quickly, but I had kept arrears dept in the loop.

lauritta

Can someone please advise regarding SMI time limit.
Am I right understanding that lone parents moving from Income Support to JSA because their youngest child has reached the age threshold at which the parent must claim JSA are not subject to the two year time limit? i.e. if you continue getting SMI while moving from IS to JSA, you can get SMI indefinitely? Thank you.

ditsyblonde

I have struggled to support my mortgage for 21 years as a single person on a low clerical wage, I have however managed to get by with no financial help of any sort from anyone, always having worked in full time employment and never having claimed a penny from anyone. I recently lost my job and am now claiming ESA through ill health and now being unable to work, therefore through no fault of my own. On claiming mortgage interest relief I was told that I was not eligible to claim relief on the whole of my mortgage of £78,000 but only on the original purchase price of my property 21 years ago which was £30,000. I have remortgaged several times largely to enable me to carry out home improvements, as my home on purchase needed everything doing to it. It had no useable kitchen or bathroom, the roof was leaking, the gas fires were condemned and the single glazing was coming out of the window frames. This was however all I could afford to buy on my lone salary. I have been told though that I cannot claim mortgage relief for any of these necessary improvements. The first time in my life I have had to ask for help and the help I have been offered is as much use as a chocolate fireguard. I am now having to attempt to live on £72.40 per week ESA and am only getting help with one third of the cost of my monthly mortgage payment. If it wasn't for my 80 year old mother drip feeding me her negligible life savings she had saved for funeral costs, then I would now be out on the streets. Can someone please explain to me the fairness in this having worked all my life? The sooner this government goes the better!!!!!!!

MissMoneypenny

ditsyblonde wrote: »

I have struggled to support my mortgage for 21 years as a single person on a low clerical wage, I have however managed to get by with no financial help of any sort from anyone, always having worked in full time employment and never having claimed a penny from anyone. I recently lost my job and am now claiming ESA through ill health and now being unable to work, therefore through no fault of my own. On claiming mortgage interest relief I was told that I was not eligible to claim relief on the whole of my mortgage of £78,000 but only on the original purchase price of my property 21 years ago which was £30,000. I have remortgaged several times largely to enable me to carry out home improvements, as my home on purchase needed everything doing to it. It had no useable kitchen or bathroom, the roof was leaking, the gas fires were condemned and the single glazing was coming out of the window frames. This was however all I could afford to buy on my lone salary. I have been told though that I cannot claim mortgage relief for any of these necessary improvements. The first time in my life I have had to ask for help and the help I have been offered is as much use as a chocolate fireguard. I am now having to attempt to live on £72.40 per week ESA and am only getting help with one third of the cost of my monthly mortgage payment. If it wasn't for my 80 year old mother drip feeding me her negligible life savings she had saved for funeral costs, then I would now be out on the streets. Can someone please explain to me the fairness in this having worked all my life? The sooner this government goes the better!!!!!!!

The last government worked on that same formula and this goverment have continued with that. You have increased your mortgage by 160% on the same property and the welfare state won't pay for MEWing (Mortgage Equity Withdrawal): just as it won't pay for any debts that a claimant has run up on credit cards etc as they are often the same thing. Many MEWed to pay off their credit cards/loans, have holidays, buy new cars, cover their everyday living expenses etc. No government will use taxpayers money to pay off benefit claimants debts.

You have said that you "remortgaged several times largely to enable me to carry out home improvements" can you prove that? The welfare state will pay the interest on the essential repairs for your property, although what you deem as essential spending, might not be viewed the same way.

I'm guessing you never took out an insurance policy to pay your mortgage in case you got sick or lost your job? If not, can you take in a lodger or two? You will have to inform your household insurers if you take in lodgers as it might affect a claim if you don't.

Horseunderwater

Was not this gov't that brought those rules in - was labour as SMI rate went down to 3.63% in 2009 from over 6%. But at least U no longer have 2 wait more than 13 weeks these days. I do not recall them ever paying the capital, or not since JSA happened. Speak to your lender & see if you can remortgage 4 better rate & for longer, they may do it, but go direct to arrears dept. Oh the DWP will sometimes cover things like windows/kitchen bits & a working bathroom, but you'd need receipts for the bills to get that added to the £30k. They upped mine by nearly £5k based on this. Are you claiming PIP too?

stevemLS

According to this http://www.nlamediaaccess.com/uploads/public/What%20we%20cover/Terms%20and%20Conditions/WEUL%20Terms%20&%20Conditions.pdf no SMI has never made capital payments.

I will otherwise keep my thoughts to myself!

ollysmum

Can anyway help please as I have contacted the jobcentre and they never seem to really know fully about SMI!
I was on it previously as a lone parent and claiming JSA after my youngest started school but I was fortunate enough to start work in April. I am now less fortunate in that the company has gone into administration and I will be made redundant next week.
I have looked into whether I can do a rapid reclaim, the jobcentre advised me that is only done within 13 weeks but online it says 182 days (6 months)!
Does anyone know which is right and if I do the rapid reclaim does that also mean my SMI will start straight away too as it is the 13 weeks wait which is really worrying as the ex also worked for the same company and is now redundant so I am now receiving no child maintenance either.

pmlindyloo

ollysmum wrote: »

Can anyway help please as I have contacted the jobcentre and they never seem to really know fully about SMI!
I was on it previously as a lone parent and claiming JSA after my youngest started school but I was fortunate enough to start work in April. I am now less fortunate in that the company has gone into administration and I will be made redundant next week.
I have looked into whether I can do a rapid reclaim, the jobcentre advised me that is only done within 13 weeks but online it says 182 days (6 months)!
Does anyone know which is right and if I do the rapid reclaim does that also mean my SMI will start straight away too as it is the 13 weeks wait which is really worrying as the ex also worked for the same company and is now redundant so I am now receiving no child maintenance either.

A rapid reclaim for JSA can be done if it is within 182 days.

However, there is a linking rule about housing costs.

The relevant information is here:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/337575/dmgch23.pdf

from 23700

For you I think the relevant part is 23718.

However, not an expert.

Suggest you print off the relevant legislation and see what they say!

sim11

Posted off the letter asking you about how much you paid and when other borrowings etc, at end of August. Have not heard anything. Starting to get concerned i should of heard back from them by now. How long did it take for others to hear back. Was wondering if i should call or leave it a couple more weeks.