ESA and mortgage help query

anmarj

happymumto2 wrote: »

Conditions that apply to SMI since 5 January 2009

the 5th of january as it states

happymumto2

tcr wrote: »

You weren't paid income related benefit at the time because your ESA(C) and half pay took you over the limit for ESA(IR). And that sounds like yours is treated as an old rules case, with a 39 week waiting period and a £100,000 limit even though you claimed after January 2009.

Why did that happen ? It's due to a loophole in the benefit regulations which wasn't fixed until 05/01/10.

On that date, anyone who had waited more than 13 weeks but less than 39 weeks was deemed to have served their waiting period (and that helps you because you don't have to wait until June 2010 for help with the mortgage), however I think it also means the lower £100,000 limit applies because yours is a case caught in the old rules.

Least that's the way I read it.

Thanks for that but it still doesn't sink in.
Still confused, I don't really think well at the moment. I went on to ESA (C) 4th October 2009 sent in the SMI forms probably towards the end of that month. On 22nd January 2010, was awarded £x.xx a week towards mortgage (not in payment due to half pay and ESA (C), fair enough no complaints there). So the award wasn't actually made until after the 5th January 2010, even though the application was made in October 2009.

And surely if there was loophole in the regulations then it should not give the date of 5th Jan 09 and 200k as the figures on their website.

I did ring them back this afternoon, same lady as this morning rang me back and was a little shirty, I read the paragraph of the jobcentre plus website, and her answer was " I am not a mortgage expert, I told you someone would ring you tomorrow", granted she did say that, but that was in relation to the waiting period.

So if I do find out tomorrow that I have served the waiting time and am being treated under the new rules, then I should be treated under the new rules for the amount as well?

happymumto2

anmarj wrote: »

the 5th of january as it states

No they are arguing that I come under the old rules but claim they don't know when the new rule came into effect and can't give me a date to work off.

NASA_2

happymumto2 wrote: »

No they are arguing that I come under the old rules but claim they don't know when the new rule came into effect and can't give me a date to work off.

http://www.dwp.gov.uk/docs/m-43-09.pdf

The 'old' new rules came into effect on 4th January 2009 whereas the legislation was amended to reflect the original intention from 5th January 2010. The change cannot be applied retrospectively and so anyone classed under the 4th January 2009 change will not be able to get the maximum help that newer claimants can.

happymumto2

Mortgage adviser has telephoned today and I do qualify for the new rules in relation to waiting time so once my ESA (IR) is sanctioned, which will be today hopefully, they will pay mortgage interest from this week, 4 weeks in arrears.
However I fall under the old rules in relation to amount as I claimed ESA before 6 January 2010. He was very patient and helpful and has said that once the ESA (IR) is actioned on the system he will give my file to another DM for reconsideration, if it is still upheld at 100k, then he advised to me appeal as he feels the current system is a bit of a grey area and that there have been a number of cases overturned at appeal.

happymumto2

Just an update as it may help other forum members. The DM was true to his word and did pass it on to another DM for reconsideration (I was going to leave it a couple of weeks and then ring to see if it had been done). Had a surprise letter on Saturday and they are now paying SMI on the total amount not just 100k :T
So anyone in a similar position should maybe request a reconsideration.