SMI overpaid

Kaysio

First post, so please be gently.

Background on myself,
I receive DLA + ESA + SMI.

My mortgage interest monthly payments are £187 per month.

The problems started around 2 years ago with the SMI payments.
I was getting over £400 paid into the account every month from the SMI.

I noticed this around the 2nd payment and phoned up the job centre and the payments got reduced down too £217 per month.
So I asked what about the extra money, how do I pay it back.
I was told, it was mine to keep and do what I wish with it.

So I just left it in the account.

Now Ive noticed again, with the amended payments.
The mortgage account has gained extra money from the MSI, now stands just over £1000.

So phoned up the mortgage company, what to do with this extra money. Told me it does not belong to me and phone up DLA.


So of I go and phone up DLA and to be told the money is legally belongs to me and do what I wish with it.

Im thinking to myself this is not correct, so I phone up the job centre and explain again Ive gained extra money in my account from the SMI.

Explained the whole story, that payments get adjusted after first overpayment. Then its happened again with the new payments put in place.

So I ask again whats happens with the extra money.
Who does it belongs to, the Government or myself.

They couldnt give me a straight answer, they actually didnt know who it belongs to.



So has anyone else have this problem ?

lld01

SMI is calculated on a standard rate of interest (3/63% at the moment) based on the outstanding balance of the mortgage. This outstanding balance is only reviewed by the DWP once a year and payments are adjusted made from a set date if necessary.

Overpayments are common. The lender should be applying any credits to reduce the outstnading mortgage balance - this is stated in legislation and the lender should be well aware of this.

pmlindyloo

lld01 wrote: »

SMI is calculated on a standard rate of interest (3/63% at the moment) based on the outstanding balance of the mortgage. This outstanding balance is only reviewed by the DWP once a year and payments are adjusted made from a set date if necessary.

Overpayments are common. The lender should be applying any credits to reduce the outstnading mortgage balance - this is stated in legislation and the lender should be well aware of this.

Confirmed by the Shelter website:

Interest rates used to calculate SMI payments

SMI is paid at the level of the Bank of England’s published Average Mortgage Rate - currently 3.63 per cent. It will only be adjusted in future when the published average mortgage rate differs by 0.5 per cent or more.
The rate of interest you actually pay on your mortgage is not taken into account. If you pay a lower interest rate than the average mortgage rate, you may be able to repay some of the capital you owe.