DWP Mortgage Interest payments -100k cap

Missconduct

Apologies if this has been posted before but I couldn't find anything, although it was difficult to know what to search for.

I claimed mortgage interest benefit before they raised the cap from 100k to 200k but of course am still stuck at the 100k cap. Does anyone know whether I could cancel my current claim and then re-apply so that I get the higher amount? I know (unless it's changed again) that there would be a 3-month delay for the new claim, but it could be worth it in the long-term, especially as I am looking at being repossessed if I don't find a solution soon for the shortfall....

All help and advice gratefully received!

dmg24

For what reason are you claiming IS/ income based benefits?

Missconduct

dmg24 wrote: »

For what reason are you claiming IS/ income based benefits?

I am too ill/disabled to work. Does that make a difference?

Thanks

dmg24

So are you claiming just IS, or do you receive IB also? Do you not live with your partner?

Missconduct

Hi, sorry, yes, currently claiming IB and IS and have an application pending for DLA. My other half lives with me but can't work as he's my carer.

dmg24

You can have a break in claim of twelve weeks and then claim SMI again. However, this would mean stopping all of your IS, not just the mortgage interest. Also, there is no guarantee that they would give you the uprated amount as it would be clear why you had ceased your claim (I am not sure if there is official guidance on this), and as you would be claiming after January 2011 you would need to claim for ESA not IB plus IS.

Would it not be simpler for your partner to get a job?

Missconduct

Thanks for the info. I suspected there would be a reason why I couldn't do it but I asked the DWP about it and didn't get an answer.

I wish it was as simple as him just getting a (paid) job, but it's unfortunately not as he has to look after me.

MissMoneypenny

It's just a temporary raise in the limit (100k to 200K) and time (39 weeks down to 13 weeks). Although the govenment stated in the budget that they would extend this until January 2012, they still called it "temporary" in their publications.

Edited to add this link I just found:-

"From January 5, 2009 changes to SMI were made on a temporary basis to reduce the waiting period from 39 or 26 weeks to 13 weeks; and to increase the limit on eligible mortgages from £100,000 to £200,000. A two-year time limit was also introduced for receiving SMI for those claiming Jobseeker’s Allowance.

These changes were due to expire on January 5, 2011. But as part of the comprehensive spending review the Government has extended these changes to January 4, 2012."
http://www.moneymarketing.co.uk/mortgages/csr-govt-extends-smi-changes-to-2012/1020579.article

Missconduct

Thanks MissMoneypenny, worth knowing, although two years would be a big help right now and might be more than enough time to enable us to sort ourselves out.

[Deleted User]

Would your lender not agree to interest only payments for a period?
Also if you are on their standard svr ask if they can offer a better deal,i asked my lender and they agreed to reduce my rate from 4.99% to 3.99% fixed for 3 years

Missconduct

Hi John,

We're already on interest only to help reduce the payments, but it's interesting that your lender has reduced your rate for you. We've asked them to reduce ours as our fixed rate ends about now and we're currently on about 6.5% so that would probably help a lot. So far, they've ignored that request (and others we've made) and instead told us that they've investigated all possible options (!) but not been able to come to an arrangement so are commencing repossession proceedings!