URGENT Changes to Morgage Interest Support [merged]

notts_guy

just to let you know had applied for this when i went onto esa and said that i would have to wait till the 13th week before i could re-apply. it does say on the letter that any arrears will calculated from the appropriate date and paid as soon as possiable.

Lou76

notts_guy wrote: »

just to let you know had applied for this when i went onto esa and said that i would have to wait till the 13th week before i could re-apply. it does say on the letter that any arrears will calculated from the appropriate date and paid as soon as possiable.

John, don't know if the rules have changed (sadly, it's been a while since I first became eligible for SMI payments ) but when I first became eligible, and had served my 39 week waiting period :eek:, as it was at the time, my payments were backdated to the original date that I became eligible.

dmg24

Lou76 wrote: »

John, don't know if the rules have changed (sadly, it's been a while since I first became eligible for SMI payments ) but when I first became eligible, and had served my 39 week waiting period :eek:, as it was at the time, my payments were backdated to the original date that I became eligible.

That is partially correct - they will only backdate to the date of application.

tcr_3

They're usually quite flexible with backdating when it comes to mortgage casework.

At week 9 they're supposed to issue form MI12 to the customer, that gives the customer 4 weeks to get the form off to the lender & back to DWP. In many cases though the MI12 is sent to the customer late, that's just through pressure of work.

Once the MI12 is returned to DWP, there's usually more evidence which they need to gather, even for the most straightforward application. Factor in things like home improvement loans, re-mortgages & mortgage payment protection policies and it can drag the whole thing way beyond the 13 wk date at which help is supposed to be forthcoming. But the DWP mortgage staff are well accustomed to the relative slowness of their evidence gathering & decision making processes & will backdate to week 13 automatically & without prompting.

Notts Guy was there any particular reason why you applied late ?

notts_guy

The reason why it was late was because they did not send the form out, i then had to request it and took nearly two weeks to get.

i then had to work out different aspect of the mortgage as part of it was to purchase my wife interest in the property when she was made bankrupt also legal cost incurred, i then had additional monies for home improvements which they will not cover and a second mortgage for an extension and double glazing to the property which they will not cover.

i have been paying the mortgages in full out of my disability, esa monies and now i will start to feel a little better off.

my mortgage is an interest only so does not cause a problem at the moment. the payment per month is £252.24 per month and will get help on £52049 which works out at £36.34 per week paid every 4 weeks and have received letter today that it will be back dated to the 13th week which is the 2nd november this means i will only need to pay £106.88.

the second mortgage they will not pay anything towards so will need to keep up payments.

thank you for you help.

Lou76

dmg24 wrote: »

That is partially correct - they will only backdate to the date of application.

Oops, when I first said "became eligible"; I meant for IS. Then after 39 weeks I became eligible for SMI payments and, therefore, had my SMI payments backdated the 39 weeks from the start of my IS entitlement.

Sorry for the confusion, I think I've confused myself. :rotfl:

getting_brighter

have just been reading some past comments on this thread regarding people being able to pay their mortgages off on government money as they would have benefitted from the 6.08% that was being paid,

i just want to make an important point here that if anyone has been overpaid an amount due to the 6.08% being paid was more than the interest rate they owed their lender, then their mortgage company will be keeping this £xxx separate, and although at present it is being kept in the claimant mortgage account as a credit THE DWP ARE ENTITLED TO TAKE BACK AT ANY TIME THIS EXTRA THAT HAS BEEN PAID,

i have money that is at present is a credit against my mortgage, but the dwp could take it back at any time which would put me in large arrears,

this is what i have been informed by my mortgage company,

so i doubt anyone in the long term is going to be paying any of their mortgage capital off on government money,

getting_brighter

I have been receiving mortgage interest for a few years now and the dwp never notify me of changes, they are hopeless at it,

i have always received payments every 4 weeks from the dwp, so that means once a year there a two payments against the pcm due to the mortgage company (if that helps anyone)

what i do is make a regular call to my mortgage company and check what payment has been made and check what my position as to arrears etc is,

thats how i found out about the drop in interest rate payments

thats how if ound out that the credit i have with them from overpayments (that just about covers my actual whole interest on the re-mortgage i took out) could be taken back by the dwp if they want, and that by law the mortgage company have to keep that amount detailed separately in my mortgage account,

i find that dealing with my mortgage company alot clearer than dealing with the dwp.

but remember that they would have to take you to court to get you out of your house/flat,

and the court has the final say NOT the mortgage company, with regard to eviction, (thats what i have been advised by the CAB) if anyone is really worried they could check this out for themselves, it might help,

i hate being in this position, i am gagging to be able to work again like i did for years, i hate being dependant on the state for my income, and all the stigma that just is like a poision that makes life even harder, i wish some of those with the blanket ignorant attacks on claimants of state help would just use a bit more intelligence and put their negative energy into something more positive like going to volunteer at a local hospice,

tcr_3

getting_brighter wrote: »

i just want to make an important point here that if anyone has been overpaid an amount due to the 6.08% being paid was more than the interest rate they owed their lender, then their mortgage company will be keeping this £xxx separate, and although at present it is being kept in the claimant mortgage account as a credit THE DWP ARE ENTITLED TO TAKE BACK AT ANY TIME THIS EXTRA THAT HAS BEEN PAID,

i have money that is at present is a credit against my mortgage, but the dwp could take it back at any time which would put me in large arrears,

this is what i have been informed by my mortgage company,

so i doubt anyone in the long term is going to be paying any of their mortgage capital off on government money,

DWP can't retrospectively claim that excess back. They haven't got the statutory powers to do that, nor has a Minister signalled their intention to legislate in that manner. Your lender is incorrect.

TOBRUK

Still haven't received a letter from the DWP regarding cut in interest payments. I have been contacting my lender each month to check when and how much they have been paying every 4 weeks.

I contacted them again this afternoon and the shortfall is £63.27 and looks to have settled to that figure since November. I am now receiving £24.57 a week interest payment, with a shortfall of £15.81 a week.

I think I shall have to contact the DWP to inform them that I have not yet received a letter from them as it should have arrived by now and may be lost! The trouble is whenever you call them it takes so long to get through to the correct department, and always a queue!