Confused-government help with mortgage interest.

Hew

I have been signing on for 13 weeks now and my mortgage is £200 away from £200,000, I have heard yesterday that if my mortgage interest will be paid (I am likely to be sent additional forms to be filled in) then the first payment won't be paid until the first week in September, if I am unable to pay a whole months mortgage this month then it will bring the balance over the cut off point for help of £200.000 will they then not help at all?

jessbob

You really need to keep on at the Job Centre regarding your claim for payment of your interest on your mortgage. When I first signed on after being made redundant, there was an abundance of forms in respect of my mortgage, and after 5 months they are still sending me out further forms and enquiries, which have to be send to my mortgage lender as well !

I have insurance to cover my mortgage for the time being, but if I had to rely on the job centre I would be seriously stressed !

Wutang_2

jessbob wrote: »

You really need to keep on at the Job Centre regarding your claim for payment of your interest on your mortgage. When I first signed on after being made redundant, there was an abundance of forms in respect of my mortgage, and after 5 months they are still sending me out further forms and enquiries, which have to be send to my mortgage lender as well !

I have insurance to cover my mortgage for the time being, but if I had to rely on the job centre I would be seriously stressed !

After 13 weeks they pay the interest at a rate of about 6.05% - I have a couple of mates with their mortgages being covered and its a simple process as long as the mortgage company fill in their bit.

And some people do have to rely on the job centre, thats the way things are at the moment - and they do a great job.

SouthCoast

SMI has lots of restrictions.

From Shelter:

http://england.shelter.org.uk/get_advice/repossession/mortgage_arrears/help_to_pay_mortgage_interest

Hew

Many thanks jessbob, Wutang and SouthCoast I believe I fit the criterior as I am claiming Income Based Jobseekers Allowance and don't have savings but when we first took out the mortgage it was for £150,000 so I understand that I shall be sent more forms to fill in requiring information on home improvements that additional borrowing from our mortgage lender although we haven't kept receipts.
My main concern at the moment is if I go over the £200,000 limit will they still pay because I keep reading that there is an upper limit of £200,000.

Mrs_Bumble

You need to get the application in asap, as the quicker it is in the quicker it can be processed and you will know where you stand, as there are lots of restrictions surrounding this payment.

When/if it kicks in the benefit only pays the interest and so if your mortgage is on a capital and repayment basis then you will need to make arrangements with your lender for the balance.

The information on the Shelter website is very good

also

http://www.jobcentreplus.gov.uk/JCP/Customers/WorkingAgeBenefits/Dev_016128.xml.html




There is also additional information in this leaflet about problems with paying your mortgage.

http://www.moneymadeclear.fsa.gov.uk/pdfs/mortgage_cantpay.pdf

cattie

As you have already done the qualifying period I believe you should have no problem with the interest being paid as you were under the £200k mark when applying & haven't taken out more finance to increase your mortgage.

You will be sent an MI2 form to send to your lender, who will then return it direct to DWP. Once your lender knows you have qualified for interest payments from DWP they will not normally treat you as a person with arrears. They are quite used to the fact that DWP have certain dates on which they send mortgage interest, which in a lot of cases will not be the date on which your mortgage is due, but for a later date.

Are you keeping your mortgage lender up to date with your situation? Only it's always best to do so & they will be familiar with situations such as yours.

Hew

I have filled in and posted the MI12 form to my lender who confirmed that this was posted on to the Jobcentre two days ago but after speaking to someone from the Jobcentre I was told that because of additional borrowing since taking out the mortgage I would probably be sent more forms to fill in, I had hoped everything would be done and dusted by the time the 13 weeks was up as I've so far with the help of family and friends managed to keep it under £200k

Hew

Forget to mention it is an interest only mortgage.

stanley38

dont hold your breath HEW, the speed the DWP work at you'll be dead
time they pull their finger out.

Keep hassling them. Is like walking backwards dealing with them.

No one who works at these places knows up from down.

Wutang_2

stanley38 wrote: »

dont hold your breath HEW, the speed the DWP work at you'll be dead
time they pull their finger out.

Keep hassling them. Is like walking backwards dealing with them.

No one who works at these places knows up from down.

What a thoroughly idiotic sentiment. Have a wild guess why some local DWPs are slow....

I will reiterate my previous point, they do a great job. If you have had a bad experience, avoid the misconception that this is the norm.