Support for Mortgage Interest Discussion Area

Voyager2002

sim11 wrote: »

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.

I think you should get in touch... you will not hear anything from them until they have also received confirmation from your lender, and this might be the hold-up.

BT887

Does anyone know if applying for and receiving Support For Mortgage Interest has a negative affect on your credit score? Would this signal to a lender that you are potentially struggling to make a repayment? There seems to be very little online about it. Thanks in advance:beer:

lld01

BT887 wrote: »

Does anyone know if applying for and receiving Support For Mortgage Interest has a negative affect on your credit score? Would this signal to a lender that you are potentially struggling to make a repayment? There seems to be very little online about it. Thanks in advance:beer:

It would only affect your "public" credit rating if you fell into arrears or payments were late... but whether it would affect the your internal credit file / rating with your lender is anyone's guess.

BT887

Thanks for the reply. Yes I'd agree with that, you'd like to think that it would not affect your rating as you would not actually be missing a payment. As you touched on, the question is whether a lender would rate you as a higher risk in the future, having had past SMI payments on your record. Its an interesting one.....Any experiences any one??:j A good question for martin :money:!!!

saminthecity

Hi everyone. I have a quick question. Hope this is the right place. Assuming you are successfully awarded SMI, does the payment come out of your benefit and then get paid to the lender or is the payment made on top of your existing benefit? For example if your weekly benefit was £100 and SMI was £10, would you get £90 in benefit and then they pay the £10 to the lender or would you still get £100 benefit and they pay the extra £10 to your lender? I'm asking as my mother has an on-going case with the DWP. They are in the process of reinstating her SMI but previously they were taking money from her benefit and paying it directly to her lender which doesn't seem right to me? Surely this is just a direct payment and not SMI?

tomtontom

saminthecity wrote: »

Hi everyone. I have a quick question. Hope this is the right place. Assuming you are successfully awarded SMI, does the payment come out of your benefit and then get paid to the lender or is the payment made on top of your existing benefit? For example if your weekly benefit was £100 and SMI was £10, would you get £90 in benefit and then they pay the £10 to the lender or would you still get £100 benefit and they pay the extra £10 to your lender? I'm asking as my mother has an on-going case with the DWP. They are in the process of reinstating her SMI but previously they were taking money from her benefit and paying it directly to her lender which doesn't seem right to me? Surely this is just a direct payment and not SMI?

SMI is paid directly to the lender. The calculation letter is poorly phrased and implies the amount is deducted from what the claimant would normally receive, but this is not the case. If you can tell us more about your mother's circumstances we can check her entitlement.

aloneinthedark

So a friend of mine got the mi12 application form through the door from the job center and she was asked to fill it in, shes stuck from step one really, she has no information from her first or second mortgage... She's on to her 3rd and final remortgage, 80k left to pay over the next 24 years..

Does she need to find the info from mortgage 1 and 2? will they pay for mortgage 1 and 2 or for number 3?

we're all a little confused and this form... well it isn't exactly helpful is it!

appreciate the help!

tomtontom

aloneinthedark wrote: »

So a friend of mine got the mi12 application form through the door from the job center and she was asked to fill it in, shes stuck from step one really, she has no information from her first or second mortgage... She's on to her 3rd and final remortgage, 80k left to pay over the next 24 years..

Does she need to find the info from mortgage 1 and 2? will they pay for mortgage 1 and 2 or for number 3?

we're all a little confused and this form... well it isn't exactly helpful is it!

appreciate the help!

They need to know what the £80K figure is made up of, hence needing the earlier info. Has she remortgaged with the same lender, does the figure cover any additional borrowing? How long ago did she remortgage - she may be able to get the old information from the lenders.

Sprintblue

Aloneinthedark,


What they are looking for if you EVER borrowed more money from your original Mortgage.

So as an example, if your original Mortgage was £100k and you re-mortgage to say £120k, then £20K would be EXCLUDED from any HELP.

If you re-mortgaged to a higher value, say to fit central heating, I understand(but please check) this would be INCLUDED as it is for the structure of the house.

I hope that helps you to understand what is behind the questions and why.

benniebert

Sprintblue wrote: »

Aloneinthedark,


What they are looking for if you EVER borrowed more money from your original Mortgage.

So as an example, if your original Mortgage was £100k and you re-mortgage to say £120k, then £20K would be EXCLUDED from any HELP.

If you re-mortgaged to a higher value, say to fit central heating, I understand(but please check) this would be INCLUDED as it is for the structure of the house.

I hope that helps you to understand what is behind the questions and why.

You are correct, you can only get the help on the amount borrowed when the house was purchased. You will not be given help for any other borrowings unless it was to make the house habitable - leaking roof, no kitchen, bath with a hole in it etc.
Borrowings for work carried out to make the home safe for a disabled person is also OK.


updating a central heating system is not allowed unless it is completely useless. Changing radiators to install designer ones is a no no.


borrowing to have an expensive holiday, having any part of the home that is being redesigned for the sake of it and buying a car etc will not be allowed.