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Please help - all JSA is being taken for mortgage, leaving no money for food or bills

CazGreg
CazGreg Posts: 214 Forumite
Part of the Furniture Combo Breaker
in Benefits & tax credits
After a certain number of weeks on JSA, you apply for help with your mortgage. This 'help' comes in the form of them taking money from your JSA and paying it straight to the mortgage lender.

I've just received letters about this. My JSA is £65.45 a week. The letter informs me that they will be taking £82.19 a week from that to pay for the mortgage!!!
I tried to contact the correct department today but all I got was confirmation that these figures are correct. The letter tells me I cannot appeal this decision.

I don't understand. How do I buy food? Bills? Pay the council tax? :cry:
The people in my life: Betty Crocker, Mr. T and Gordon (of Gordon's gin) :T
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Comments

  • nannytone_2
    nannytone_2 Posts: 13,004 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    these letters are badly worded.
    they DO NOT take money from your JSA to pay your mortgage. though I have to say, thats an awful lot of money to be paid on your mortgage interest at a rate of 3.6%
  • pmlindyloo
    pmlindyloo Posts: 13,101 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Just to confirm what Nannytone has said.

    The money for your mortgage interest will go directly to your mortgage company.

    You will still receive your JSA.
  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    If you're on JSA ... your council tax will be paid too.
  • TedButler
    TedButler Posts: 61 Forumite
    How long will they pay your mortgage?
  • pmlindyloo
    pmlindyloo Posts: 13,101 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    TedButler wrote: »
    How long will they pay your mortgage?


    Have a look at this link:

    http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/DG_180321

    The amount of time depends on which benefit you are receiving.

    It is also not a case of paying your mortage but rather the interest part of your mortgage (at a certain rate). You need to check the link for all the details.
  • CazGreg
    CazGreg Posts: 214 Forumite
    Part of the Furniture Combo Breaker
    Thank you for replies. But the letter clearly says: "We will take money from your Jobseeker's Allowance to pay straight to your lender."
    The people in my life: Betty Crocker, Mr. T and Gordon (of Gordon's gin) :T
  • RAS
    RAS Posts: 36,193 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Yes but your job seeker's allowance is being inccreased by the same amount of money, to cover the mortgage payments.
    If you've have not made a mistake, you've made nothing
  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    Isn't JSA now £67.50 per week? So you would get £67.50+£82.19 so a total payment of £149.69 then they take £82.19 to leave you with £67.50. For the poster suggesting that is a lot then do the math. £82.19 is an annual interest bill of £4285 then divide it by the interest rate of 3.63% makes it a total mortgage of about £118,000. That's a fairly reasonable mortgage to me.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • fluffymovie
    fluffymovie Posts: 1,417 Forumite
    Part of the Furniture Combo Breaker
    You need to make a claim for Council Tax benefit with your council as on JSA, you may be entitled to some help with that.
    I currently manage a Housing Benefit service and have been working in Housing / council tax benefit (as was) since 2001.

    All views expressed in my posts are my own opinions and do not necessarily reflect those of my employer.
  • Oldernotwiser
    Oldernotwiser Posts: 37,425 Forumite
    nannytone wrote: »
    these letters are badly worded.
    they DO NOT take money from your JSA to pay your mortgage. though I have to say, thats an awful lot of money to be paid on your mortgage interest at a rate of 3.6%

    I don't really think that £82 per week is a lot of money, even for an interest only mortgage.
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