DWP Help with Mortgage Interest

Danday

TOBRUK wrote: »

This is worrying, especially those who are worried about the ceasing of SMI help and the worry of taking up a loan. I have been contacted by SERCO 3 times since I declined this loan, trying to persuade me to take it up and asking what I am going to do if I can't keep up with the payments!

If you look into SERCO (you don't have to look hard) as I did, as I worry about taking up any kind of loan, it really doesn't read well. A FTSE 100 INDEX private company who in 2013 was up for fraud and tax avoidance, and is well known for overcharging. Although they got off with fraud, they had to recompense the taxpayer £68.5 million excluding VAT for the overcharging found in an audit of Ministry of Justice contracts.

They have government contracts in billions, and in different areas such as prisons (they run a few), NHS, rail etc and they have contracts in many countries. They made £82.1m profit in 2016.

As a private company who is known for its overcharging, and with taking up this loan, they can't tell me how much the interest rate will go up in future. If I wanted to pay some of the loan off, the minimum repayments would be £100 (how much of this would be interest?)per payment.

Some may think the goverment are offering this loan and will believe it is being helpful, however, it is a private (for profit) company, and if people in the future have problems with it, will the goverment do something to help?

It is Equity Release by the back door - at least with that type of funding it is heavily regulated - I wonder if this loan scheme is as heavily regulated?

parkrunner

TOBRUK wrote: »

As a private company who is known for its overcharging, and with taking up this loan, they can't tell me how much the interest rate will go up in future. If I wanted to pay some of the loan off, the minimum repayments would be £100 (how much of this would be interest?)per payment.

Nobody can but the rate isn't set by Serco anyway.

https://debtcamel.co.uk/smi-loan-help-mortgage/

Interest will be charged on the loan at the OBR’s forecast of the gilt rate – at the moment this forecast for 2018 is 1.5%. (You may previously have been quoted 1.7% but this has now reduced.) This interest rate is variable so it is expected to go up over the next few years but it is always likely to be lower than any mortgage rate.

Danday

parkrunner wrote: »

Nobody can but the rate isn't set by Serco anyway.

https://debtcamel.co.uk/smi-loan-help-mortgage/

Interest will be charged on the loan at the OBR’s forecast of the gilt rate – at the moment this forecast for 2018 is 1.5%. (You may previously have been quoted 1.7% but this has now reduced.) This interest rate is variable so it is expected to go up over the next few years but it is always likely to be lower than any mortgage rate.

Not entirely - my son in law has a mortgage that tracks the base rate and he currently pays 0,45% + 0.50% = 0.95%. This is with what used to be the Woolwich.

Danday

Robbydabanca wrote: »

Why say what used to be the Woolwich.? Just say what it is. It is very frustrating for a reader.

It changed it's name to something else which I don't know.

takman

Danday wrote: »

As I have said and I repeat it, I have no objections to being re-assessed what I am objecting to is the re-assessment taking place every 2 years. Plus I have yet to receive a report from the assessors that bears any resemblance to the truth as to what I said or what the evidence I supplied them at the assessment. They seem hell bent on trying to make sure that I have to appeal every time. Where they come up with the idea that my difficulties will change for the better I don't know. They have been like this for over 20 years so can't see how another 2 years will make any difference.

Like i said your effectively being paid £8642.40 to attend an assessment every two years and submit an appeal.

For someone on minimum wage they would have to work 11 hours a week over those two years to get as much money. Yet your complaining about having to go to an assessment ONCE every 2 years.

If you have an issue with the process you need to go through to get the money then you can stop claiming it and never have to do it again. When i first left school i had signed onto Job Seekers allowance for a few months until i got a job and i had to go to an appointment every two weeks and got less money than you but i didn't complain once as i was effectively getting paid to do it.

NYM

Danday wrote: »

It changed it's name to something else which I don't know.

I believe it was Barclays

Danday

takman wrote: »

Like i said your effectively being paid £8642.40 to attend an assessment every two years and submit an appeal.

For someone on minimum wage they would have to work 11 hours a week over those two years to get as much money. Yet your complaining about having to go to an assessment ONCE every 2 years.

If you have an issue with the process you need to go through to get the money then you can stop claiming it and never have to do it again. When i first left school i had signed onto Job Seekers allowance for a few months until i got a job and i had to go to an appointment every two weeks and got less money than you but i didn't complain once as i was effectively getting paid to do it.

You do realise that payments made under the PIP banner are not for normal living costs? They are made towards the additional costs that are incurred day in day out that a normal healthy individual would not have. So to assume that PIP is in any way relevant to a wage or income is wrong.
As you have now realised my objection is about the award length. The DWP can make awards for just a few months up to 10 years. The length of the award is in part determined by considering if my difficulties would deteriorate or improve. So setting a 3 year award they are saying that in that period there could well be a deterioration or improvement.
You can forget a deterioration as the level of my previous award could go no higher. So I have to take it that they think it will improve. Given the many problems I have, the conditions themselves the medication I take and the GP's prognosis I cannot for the life of me see how they can come up with that assumption.
The latest assessors report does in fact state that on balance there is little that is wrong with me. Hence why the DWP have removed all of my previous award. However what you have to take on board is that this report and the one from 2 years ago is almost identical (probably because I sent the assessor a copy of it when I returned the review form.) The report from 2 years ago was then, after I appealed against the decision, miraculously ignored and the DWP decision maker re-awarded what I previously had. This scenario has happened twice in the past 5 years.
I know there is nothing I can do about the system or the quality of the assessors' reports, but how do you make a decision maker see sense when the evidence is in front of him/her that confirms that in 10 years I will have deteriorated still further. Assuming that I will improve in 2 years is contrary to common sense.

bspm1

poppy12345 wrote: »

I have a feeling it was the PIP form. The last username had the story of being on DLA, refused PIP without an assessment so put in an MR then got refused. Applied for AA then got refused. :rotfl:

You are correct! Very difficult to keep up with this buffoon.

poppy10_2

TOBRUK wrote: »

with taking up this loan, they can't tell me how much the interest rate will go up in future.

Your bank can't tell you how much interest rates will go up in future either

Danday

poppy10 wrote: »

Your bank can't tell you how much interest rates will go up in future either

But most if not all bank loans are fixed interest loans