URGENT Changes to Morgage Interest Support [merged]

katrin43

Thanks for all you suggestions Tara, its such a worrying time for all concerned but i'm sure we'll all get through :T

Tara100

Important: For those affected by the mortgage interest support payments decrease......

Check that your allowance is correct!

Thanks to John aka 'Woodbine' :kisses: I have discovered that the amount about to be regularly paid to my mortgage lender is incorrect by £17.00 a week!
After double checking the sums, I telephoned JobcentrePlus who agreed there's an error, and that they will amend the figures, write to Standard Life again and back pay me for the £17.00 a week extra that they should have assited with since May
Ok I still have to find an extra £8.89 a week since the change due in October, but it's easier than having to find another £25 a week, on top of the £20 a week I already pay to Standard Life.

John I can't thank you enough! :A If you hadn't told me how to do the sums, I would never have known about the mistake...



Please folks, check that you are getting the correct amount of assistance per week:

Look at the new 'interest each week' figure that is quoted in your letter from the benefits section, and then do the calculation below:

You need to multiply your mortgage amount agreed by the benefits section x 3.63%:
So for example a mortgage of £115,000 x 3.63% = £4174.50.
Divide this figure by 52 weeks = £80.27. This is the 'interest each week' figure you should receive each week.

Here's a quick and easy to use percentage calculator: http://www.percentagecalculator.net/


If the figure you see in your letter isn't what you calculate, then call JobcentrePlus and tell them asap - I've managed to get my error sorted in one day, and if they can get mine wrong, I'm sure there are many other in the same boat.

Hope this helps and thanks again 'Woodbine' :T
Tara

dmg24

Tara100 wrote: »

You need to multiply your mortgage amount agreed by the benefits section x 3.63%:
So for example a mortgage of £115,000 x 3.63% = £4174.50.
Divide this figure by 52 weeks = £80.27. This is the 'interest each week' figure you should receive each week.
If the figure you see in your letter isn't what you calculate, then call JobcentrePlus and tell them asap - I've managed to get my error sorted in one day

Hope this helps and thanks again 'Woodbine' :T
Tara

Though it only makes a very slight difference, the figure is not divided by 52, but 365/7.

Broken_hearted

WOO HOO got my letter am down to £10 (just under to be truthful). It may sound awful however seeing everyone else with huge shortfalls is making me feel safer as if they can stay afloat we should have no problem.

[Deleted User]

also though it makes no difference to the annual figure the dwp pay smi to your lender every 4 weeks NOT every calendar month so its x per week times 52 weeks divided by 13,the significance of this is that lenders work on a 12 month year and thats how they quote your repayments.

Tara100

dmg24 wrote: »

Though it only makes a very slight difference, the figure is not divided by 52, but 365/7.

My local benefits section calculated the same as me, as our figures were exactly the same

krisskross

katrin43 wrote: »

Hi, Another new one to the site..Have just recieved a letter from northern rock telling me to expect a letter from the DWP about my mortgage payments, so decided to give the bank and the DWP a call. They seem so vague over whats going on but the DWP did tell me that it looks like it will be around £60 a month shortfall, and although it seems like very little, i really don't know what i'm going to do. I have had to give up my job to look after my father who has alzeimers and can not be left on his own nor can he go in a home as he crys and is very distressing for me, so i decided to help my mum and i'm with him for around 50 hours a week. Does anyone know if there is allowances made in these circumstances ? i am out of my mind about this and i'm trying to put on a brave face infront of my 14 year old daughter. My heart goes out to everyone who are facing much higher amounts than me, and i hope there wil be some resolution to this and especially the carers of people with illness. Have tried the citizens advice but its a recorded message telling me to call back due to high volume of call. good luck everyone.

Does your Dad get Attendance Allowance? You could claim Carer's Allowance of £55ish a week if he does.

dave030445

Tara100 wrote: »

Important: For those affected by the mortgage interest support payments decrease......

Check that your allowance is correct!

Thanks to John aka 'Woodbine' :kisses: I have discovered that the amount about to be regularly paid to my mortgage lender is incorrect by £17.00 a week!
After double checking the sums, I telephoned JobcentrePlus who agreed there's an error, and that they will amend the figures, write to Standard Life again and back pay me for the £17.00 a week extra that they should have assited with since May
Ok I still have to find an extra £8.89 a week since the change due in October, but it's easier than having to find another £25 a week, on top of the £20 a week I already pay to Standard Life.

John I can't thank you enough! :A If you hadn't told me how to do the sums, I would never have known about the mistake...



Please folks, check that you are getting the correct amount of assistance per week:

Look at the new 'interest each week' figure that is quoted in your letter from the benefits section, and then do the calculation below:

You need to multiply your mortgage amount agreed by the benefits section x 3.63%:
So for example a mortgage of £115,000 x 3.63% = £4174.50.
Divide this figure by 52 weeks = £80.27. This is the 'interest each week' figure you should receive each week.

Here's a quick and easy to use percentage calculator: http://www.percentagecalculator.net/


If the figure you see in your letter isn't what you calculate, then call JobcentrePlus and tell them asap - I've managed to get my error sorted in one day, and if they can get mine wrong, I'm sure there are many other in the same boat.

Hope this helps and thanks again 'Woodbine' :T
Tara

damm spot on just my luck
just had reply from my MP can i paste and copy his reply

dmg24

Tara100 wrote: »

My local benefits section calculated the same as me, as our figures were exactly the same

They should use their online system, which will get the 365/7 result. It is only a case of pennies, so no great difference. It is because the APR is annual, but there are more than 52 weeks in a year.

dave030445 wrote: »

damm spot on just my luck
just had reply from my MP can i paste and copy his reply

Yep, just delete your own details.

dave030445

this is the reply from my MP
dont much that we didnt know before

Thank you for your message. The reason for the change was that the current rate is set far above the average rate being paid by people receiving the support. 3.67% is the average amount being paid in mortgage interest, as calculated by the Bank of England. Prior to this we were paying out far more in support than people were paying themselves in mortgage interest. We have had extensive discussions with the Mortgage industry about the changes, and they have assured us that they will ensure that people do not lose their homes. Can you let me know what discussions you have had with your lender, and what rate you are currently paying.