URGENT Changes to Morgage Interest Support [merged]

dave030445

Hi had another reply from my MP totally no help what so ever total waste of space this is his reply.

We are continuing to discuss these matters with the mortgage lenders. Can I suggest that you contact the Citizens Advice Bureau for specific advice about dealing with your lender. Sometimes they are willing to reschedule a mortgage over a longer period if you can only afford part of the payments. I appreciate that we have had to take some difficult decisions – we in fact inherited a situation where the previous Government had planned a larger cut to mortgage support, and we were able to reinstate part of the support that they were going to axe. Their plan was to reduce the amount to 2%.
Hopefully also the improvement in the job market and the low level of unemployment locally means that you will be able to move back into work quickly and so this will no longer be a problem.

Lou76

TOBRUK wrote: »

Well it's mid October and I still haven't been notified by the DWP yet about how the payments will affect me. I wonder how many people haven't yet been notified and also aren't aware of the cuts.

I have a rough idea of the shortfall to expect and I have been aware of the changes that were to be implimented this month, since the announcement in the budget. I also know the dates when the payments by DWP are to be paid to the lender - so I can check with them how much has been paid by the DWP.

However, I'm wondering how many won't be aware (if they don't follow the news etc) of these changes and will not be until the lender notifies them of shortfall and/or requests payment.

Any news yet?

I've still to receive a letter either from the Halifax, or the DWP, informing me of how this will affect my payments - i.e. how much I have to adjust my standing order to cover "the rest of it".

Don't get me wrong, I totally appreciate any help I am being given in order to keep a roof over my head, but it would still be nice to be kept informed, preferably in advance though.

By my [rough] calculations, my last [old rate] SMI payment was due on 1st October (is it paid in arrears? ) so the new rate should be applied to my account on 29th October?

So, assuming the letter arrives in todays' post, I have been given 1 [working] day to digest the information and work out a plan of action? :eek:

That can't be right, surely?

Thankfully, for my own sanity, I read about the changes here and have [roughly - maths never was my forte ] calculated the difference myself. But, how many people haven't been afforded that luxury and are in for a big shock?

It beggars belief...

TOBRUK

Hi Lou, no, no sign of a letter yet! The payments are made every 4 weeks to the lender and yes, they are in arrears. I know the next payment to my lender is on the 29th October (just 2 days to go!) as I've kept a note of when they are paid since I spoke to my lender a few months ago. I reckon that the payments will be almost halved so that gives me a good idea of the shortfall!!

The DWP don't inform the lender of any changes or what payments they make, it is up to you to inform the lender. I will be phoning the lender on Friday to see how much exactly has been paid by the lender.

It is important to contact the lender every few months to see where you stand in case - as a year or so ago I had a phonecall from the lender stating that I was short and they wanted a payment of over £200 A.s.a.p. - there had been a change in payment which DWP hadn't informed me of and the lender hadn't been informed either, it was when I was on a variable and every time the BOE changed the rate it would affect the payment. Since then I phone them up every few months to make sure I'm on top of it!

It is terrible that we haven't been informed by the DWP so far, but as woodbine informed me a while ago the payments are in arrears and so we should have some time before the change.

TOBRUK

DoleMole wrote: »

Has anyone been able to get another mortgage at a lower rate, even though unemployed. to stave off the cut

Will finding money to make up my shortfall, and waiting till I am off my fixed rate next June when it switches to SVR be the better option. I have a three thousand pound penalty for terminating my current mortgage now.

Thanks

DM

Tara100 wrote: »

Hi DM

As for finding a mortgage provider whilst unemployed.....I very much doubt you will find one, as the risks are too high for a potential lender.


Tara

Well, I did manage to change my mortgage almost a year ago even though I am ill and unable to work. I saw a mortgage broker and because, I suppose because I enough equity in the house, I managed to move my mortgage and get a fixed rate at the halifax (I was with BM) but also they extended the amount of years and so bring down the payments.

logic500

Not much to add to this thread other than to vent some spleen. I was made redundant in July this year, company went pop, Directors skimmed off any monies prior to collapse, and left all employees without any money. Only in October did I receive the redundancy money from the government, albeit a pittance of what I was owed from the company. Now here I am still jobless, and about to get my first payment against the interest next week. I'm still left with £250 per month just to keep the interest payments up to date. Any redundancy money has long been spent keeping up with payments. We're spending £125 a month on food for a family of 5 and living like peasants... We've paid our taxes all the years gone, and for what, so that those who haven't worked can sit at home in their rented accommodation... we're screwed... and I'm so grateful for all the governments help.

TOBRUK

Hi logic500, sorry about your situation. So you will begin receiving help with mortgage interest payments from DWP next week? Is that when the 13 weeks since your application kicks in? Have you been notified how much they will be paying and if so will you be short of £250 per month even with this help? I remember when I lost my job I had to wait 39 weeks for any help ... I really don't know how I managed it then!

I have been staggered to be honest at how much some people have been receiving in housing benefit to pay their rent! I really couldn't believe it, although I do understand that places like London are expensive.

I still haven't received a letter from the DWP with regard the cut in interest payment help!! I did phone my lender this morning and the DWP did make a payment today which is short and was less than previous payments, but I'm still not sure if that will be the actual payment in future - I shall be phoning my lender up in 4 weeks time to see what the payment will be then. Before now I was receiving £41 a week (don't get me wrong, I am grateful for the help) so I know it's going to be quite a bit less than this.

Dognobs

logic500 wrote: »

Not much to add to this thread other than to vent some spleen. I was made redundant in July this year, company went pop, Directors skimmed off any monies prior to collapse, and left all employees without any money. Only in October did I receive the redundancy money from the government, albeit a pittance of what I was owed from the company. Now here I am still jobless, and about to get my first payment against the interest next week. I'm still left with £250 per month just to keep the interest payments up to date. Any redundancy money has long been spent keeping up with payments. We're spending £125 a month on food for a family of 5 and living like peasants... We've paid our taxes all the years gone, and for what, so that those who haven't worked can sit at home in their rented accommodation... we're screwed... and I'm so grateful for all the governments help.

Well said I have applied for 11 jobs in the last month and not heard from any! I just don't understand that if I was renting they would pay for the lot! And I could happly sit on my !!!! for the rest of my life. I remember the last Tory !!!! up and intrest rates went to 15%+! So i thought I was being cleaver getting a fixed rate at 7% (DIFFRENT STORY!) Now I am in the crap! All people claming sholuld be looked at on there own merrit and worked out as such. If I lose my home It will cost the govenment more than £700 a month (that is what I am short!) to house my family of 5 I will then get signed off sick as I have AS and NEVER WORK!!!

VOTED TORY FOR CHANGE?? WELL DONE !

dave030445

Got a letter from my mortgage company today saying that the DWP had been in touch to say that they payments were going down im now £197 short a month better then i thought but still holly s--t where can i find this money.

[Deleted User]

Has anyone still not had official notification of their reduced smi payments from the dwp?
my october mortgage payment went out today and still no dwp letter,will have to phone them and my lender on monday.

ssharon

I've just rung the DWP and was informed of the new amount, they will now pay £32.04 towards my mortgage, so my monthly shortfall will go up from £80 to £160.

Although I am grateful for the £32 towards my mortgage, and I know that I am lucky that my mortgage is only £302, due to reduce to £277 very soon (fixed rate NRAM going to variable rate in Jan). But it is all relative.

I had to give up work at the beginning of the year due to tghe care needs of my disabled mother increasing (so luckily am able to claim IS and CA, also receive CTC), but will struggle to meet the increased shortfgall). Out of my payments I have to put £40 petrol in car to travel to my mums twice a day. She lives about 15 miles away and as we both own our homes moving nearer is not an option.

Sorry, I am whining here, but my choices will be pay my mortgage to keep roof over head or put petrol in car to be able to tend to my mum. I have cut my daughter's dance classes (she's a good girl and fully understands why), have cancelled the TV and Broadband (will get a digibox and will view free channels) but need to keep phone as emergencies with mum. We've been on breadline for a while now, and luxuries went long time ago so paring back anymore will be difficult.

I understand that a LOT of people are in a worse situation, but I just feel like it is a very bleak future for us all.

One (relatively) good thing is my mortgage is quite small, I owe £45,000 and the property is currently worth £120,000 ish (although value is probably going to plumet).

Rant and moan over for now.