Support for Mortgage Interest Discussion Area

JackieJo

2 years ago we reached the end of our 25 year interest only mortgage with an outstanding £135,000 we d

elle_may

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?

Houseing costs paid extra on top of benefit. Straight to lender as now, but goverment now paying rent to the benefit claiment so they can get in debt and be evicted. Dont know if this olso apply's to SMI.

tomtontom

elle_may wrote: »

Houseing costs paid extra on top of benefit. Straight to lender as now, but goverment now paying rent to the benefit claiment so they can get in debt and be evicted. Dont know if this olso apply's to SMI.

The post you are responding to is from January.

SMI continues to be paid directly to the lender. There is no reason why a tenant should get into debt by having their HB paid to them - they just need to forward it to their landlord.

10pence

elle_may wrote: »

Houseing costs paid extra on top of benefit. Straight to lender as now, but goverment now paying rent to the benefit claiment so they can get in debt and be evicted. Dont know if this olso apply's to SMI.

SMI (Support for Mortgage Interest), is for home owners and goes directly to lender.

Less lefty, liberal claptrap and more reality. Thinking behind making benefit claimants pay receive their HB or UC directly to pay landlord is to empower them, to change their mentality, to make them become more self-sufficient. IN that way making them do what many other people do, from benefit claimants to workers - pay their own way.
And, if someone cannot budget and get their priorities right and pay priority bills first that's speaks volumes about that person.
I've witnessed many tenants get suspended possession order after another for years with rent arrears and never learn their lesson. The day housing associations start using high courts for evictions won't come soon enough.

billywilly

JackieJo wrote: »

2 years ago we reached the end of our 25 year interest only mortgage with an outstanding £135,000 we d

.....and??

billywilly

10pence wrote: »

. The day housing associations start using high courts for evictions won't come soon enough.

I agree, more cases should be processed that way. Anybody that goes through the County Court system faces months of paperwork and delays in getting the eviction under way.
What annoys me is that LA's and charities use the system to keep the tenant away from their door. That is until the Sheriff turns up one morning at 8 am with an IMMEDIATE and UNANNOUNCED eviction notice from the High Court and the tenant has literally under an hour to get out!
Some tenants take the p**s out of the landlord.

suzy-wuzy

Hi - wondered if anyone could give me some info on this - have been receiving SMI for quite a few years now whilst studying (mature student & single parent), but am now self employed and have a 'savings pot' made up of the excess as my interest rate is low....i realise I couldn't draw on that pot whilst still receiving DWP payments - but now I no longer receive the SMI and am paying my own way, is there any way I could draw on those funds as they would come in mighty handy helping to get my new business off the ground without incurring any further debt?! I have asked the DWP who have said they don't really care what happens to that money now they no longer pay it to me....any thoughts?

tgroom57

big changes afoot in the summer budget 2015.

rogerblack

Please don't reuse very old threads, it's at best confusing.
This one is from 2009!

tomtontom

tgroom57 wrote: »

big changes afoot in the summer budget 2015.

Because of situations like this:

suzy-wuzy wrote: »

Hi - wondered if anyone could give me some info on this - have been receiving SMI for quite a few years now whilst studying (mature student & single parent), but am now self employed and have a 'savings pot' made up of the excess as my interest rate is low....i realise I couldn't draw on that pot whilst still receiving DWP payments - but now I no longer receive the SMI and am paying my own way, is there any way I could draw on those funds as they would come in mighty handy helping to get my new business off the ground without incurring any further debt?! I have asked the DWP who have said they don't really care what happens to that money now they no longer pay it to me....any thoughts?