URGENT Changes to Morgage Interest Support [merged]

dmg24

The dates are pretty close. Would your lender allow you to pay over the phone this month, and then set up a direct debit for the next payment?

Lea74

Yes, it seems that they would. The person I talked to was not really focused on what I was saying so I think another phone call may be a good idea.

I guess as this is my first SMI payment, I am just hoping it will go smoothly.

Lea74

Should I expect to get a letter from my Mortgage Lender indicating the amount that I will need to pay? Is this is the standard practice?

anmarj

the dwp should be in touch with the lender about what they are paying but not sure how long the letter takes, although dwp pay 4 weekly, do not "assume" that the payment is 4 weeks from the 27 October. the payments get put into a payment cycle which means it could 1,2,3,4 or 5 weeks before they get first payment, the best way to check is to ring the benefit concerned and ask them to check when they payment is due to be issued (all they have to do is look at a case control) that means you get a better idea. the best way to work out what your "monthly" payment for the mortgage is to times the amount paid by 13 weeks (you get 13 payments over the year) and then divide by 12, this will give you a better idea, if there is any extra to pay

Lea74

Thank you - dont know why I didnt think of calling DWP first to find out next payment date.

For the calculation I have been told a figure per week, paid every four weeks. Therefore should the calculation be:

DWP SMI x 4 weeks x 13 payments / 12 months??

Many thanks.

TOBRUK

Lea74 wrote: »

I am hoping someone can point me in the right direction. I have received my letter from the DWP, with the amount of interest support they will be paying to my mortgage lender. This doesnt cover the full mortgage instalment so I called my mortgage lender to set up a debit order for the difference.

They indicated that they hadnt received any communication from the DWP as yet and therefore couldnt arrange or even confirm the new amount.

For those that have had this benefit before, will the DWP send a letter to my mortgage lender? I am concerned that it wont reach them in time for my next mortgage payment.

Any suggestions / advice gladly appreciated.

dmg24 wrote: »

As you know the amount the DWP will pay, I can't see why your lender would not set up a direct debit for the difference. Ring back and speak to someone else.

The DWP do not (in my experience) notify your lender of any changes to SMI payments. They have never sent notification of any changes of any payments to my lender. It is your responsibility to check with your lender regarding your mortgage payment - it is important that you phone them every few months to check payments are paid in and are up to date.

Last year I had a shock because my lender called me to inform me that I had a deficite of over £200 and wanted immediate payment - since then I have made sure that I call and check every 3-4 months.

Have I understood correctly that you already have a DD with your lender? You can call your lender at any time and ask when the DWP payments have been made and how much they have paid. I agree with dmg24 - as long as you know the amount you need to make up the difference you can amend your
DD with your lender at any time.

If you already have a DD you can change the amount you want to pay each month at any time - you do not need to stop a DD and set another one up. You do not need to send a copy of the DWP letter or anything to your lender, all they are interested in is that your mortgage is paid.

As long as you know how much the deficite is you can change your DD payment to cover it by speaking to your lender and give them instruction to change the monthly amount of your DD.

Yes the DWP pay your lender every 4 weeks. Work out the approximate date of when the next payment by DWP is due and phone your lender on that date to find out if they have received the payment and how much it was.

Lea74

Thanks. This is not a change in SMI payments, this will be a first SMI payment. The letter from the DWP states that they will notify my lender each 4 weeks of what they have paid. I think my first port of call on monday will be to the DWP to find out the first payment date and then set up a new direct debit with my mortgage lender.

Thanks for all the help.

jimmyteabag

i am in the same situation, contacted local mp, he replied after 8 weeks telling me the secretary of state had taken an interest in my comments and was going to deal with it himself. that was 3 weeks ago, no reply yet. i have leukaemia and told him "across the board" does not work in all cases such as disabilities.
Get rid of "scroungers" but be fair to people with illness.
I have been told by citizens advice/macmillan i am one of many and they are informing the government of the numbers.
Dont think it will make a difference but you have to try.

Tara100

Well done Jimmy for putting your voice forward

Lea74

I called IS and they said that one weeks payment has been made and another will follow in 4 weeks ( that is entitlement x 4). Unfortunately she wasnt exactly thrilled to talk to me - thats okay though.

I then called my mortgage lender and they said that they received the transfer but were waiting for further info from DFS (??) and then will let me know my new shortfall amount each month.

A couple of days later I called mortgage lender again and spoke to a really helpful young girl. She told me that they were still waiting for info. I mentioned that they wouldnt be receiving any more any info then what they already had (the lady at IS said that they had sent all the relevant info). The young lady then gave me an amount that she thought I would need to pay. She also suggested that I cancel my current direct debit and phone through at the end of the next week and pay the shortfall over the phone. However, that this was still an open issue and the other department would give me the final figure.

AHHHH!! All very frustrating I am trying to budget and plan ahead (for the first time) and I cant seem to get a straight answer. I cant afford the full mortgage amount so really need to know what I need to pay.

Anybody been in the same situation and any suggestions?