Support for mortgage interest rate change

TELLIT01

Don't worry about duplicate posting, it happens all the time.  You should contact your mortgage lender as soon as possible to discuss the situation with them.  Do not wait until there are arrears, as they are likely to be more helpful if you are the one raising the problem.

Marcus99

TELLIT01 said:

Don't worry about duplicate posting, it happens all the time.  You should contact your mortgage lender as soon as possible to discuss the situation with them.  Do not wait until there are arrears, as they are likely to be more helpful if you are the one raising the problem.

Thanks TELLIT01. I'll take your wise advice and contact my mortgage provider. I imagine their phone line will be inundated with similar enquiries.  

franklin.adele

I think i just commented on the first post you put on about smi,the only info i can find says This means as mortgage rates go up, the SMI rate will too, so you won't have to pay the shortfall. Similarly, it will go down if mortgage rates drop – though the change only takes place a couple of months after the target's hit. I didnt see the bit about a 2 month lag but the interest rates started going up in January for me and this will be the 6th increase and i am having to find an extra £150 from nowhere,i wrongly assumed it went up when the interest rate goes up as the above quote from here says it does and got into arrears,it certainly went down as soon as the base rate did no lag there was there but now its shooting back up theres nothing,any search i do i just find info on their interest rate for paying them back not about how it help us cover the interest rate. I have contacted my provider and have been given a 3 month fixed rate in the hope this smi will be sorted by then but now im not sure it will even go up at all,we even rang them from my debt advisers office and they had no clue! my mp said the SIR rate and base rate have to change by .5% when i google what the SIR is its says its the base rate so i dont understand that at all and its certainly gone up by .5% by now after 5 increases at .25% and the last one was actually .5% but still nothing from smi?

Michelle_A

I have also been trying to find out this information as like you I am really confused by the rate staying at 2.09 after all the consecutive rate hikes,  I know prior to this benefit being converted into a loan, the payment rates would rise as the BOE put up their rates, it feels like something has gone very wrong with SMI as the rate should definitely be higher now I read it went on the average uk new mortgage rate which was around 4.4%prior to thus new hike today!!
And the fact that DWO cannot seem to answer any questions about this is very worrying.
People will start to lose their homes uts wrong.

calcotti

I believe SMI interest rate changes will only change twice a year. This affects both what they will pay you and what they charge you for the loan.

Tulip99

Thank you for your comments. I thought I would give you an update on my situation. As previously stated I am disabled and as far as I’m concerned the Government have nearly killed me!!!  My mortgage interest monthly payment in January last year was £350 monthly,the DWP SMI LOAN contribution was £222 4 weekly. My monthly mortgage payment is now £1040!! DWP loan £222!!!My mortgage company have put me under debilitating pressure every month over the last year. Unbelievable pressure even though I am a vulnerable adult, ended up in tears nearly every call, extreme tremors and blue lighted to hospital on 2 occasions. I told them time and time again that I was at extreme risk of having a heart attack or stroke which made no difference at all. Even the FCA guidance to lenders didn’t seem to apply to them. With total disability benefits of £1280 monthly where was I supposed to find extra money from, they offered no help whatsoever and after my latest complaint to them I will be going to the Ombudsman once I have the energy.  I have had to give in now I just couldn’t take anymore, I am having to sell my house now to pay off the mortgage and SMI LOAN. Hopefully I will have enough money left over to buy and live in a caravan. Quite a comedown from a 4 bedroom detached house with 100 ft garden, I worked hard all my life apart from having my daughter 25 years ago and being disabled for the last 5 years following Sepsis and other serious conditions. I really can’t believe what the government have done to us, if I could sue them I would along with my mortgage company. Good luck to you all I really hope things change for you in time, it’s too late for me 😡

comeandgo

Tulip99 said:

Thank you for your comments. I thought I would give you an update on my situation. As previously stated I am disabled and as far as I’m concerned the Government have nearly killed me!!!  My mortgage interest monthly payment in January last year was £350 monthly,the DWP SMI LOAN contribution was £222 4 weekly. My monthly mortgage payment is now £1040!! DWP loan £222!!!My mortgage company have put me under debilitating pressure every month over the last year. Unbelievable pressure even though I am a vulnerable adult, ended up in tears nearly every call, extreme tremors and blue lighted to hospital on 2 occasions. I told them time and time again that I was at extreme risk of having a heart attack or stroke which made no difference at all. Even the FCA guidance to lenders didn’t seem to apply to them. With total disability benefits of £1280 monthly where was I supposed to find extra money from, they offered no help whatsoever and after my latest complaint to them I will be going to the Ombudsman once I have the energy.  I have had to give in now I just couldn’t take anymore, I am having to sell my house now to pay off the mortgage and SMI LOAN. Hopefully I will have enough money left over to buy and live in a caravan. Quite a comedown from a 4 bedroom detached house with 100 ft garden, I worked hard all my life apart from having my daughter 25 years ago and being disabled for the last 5 years following Sepsis and other serious conditions. I really can’t believe what the government have done to us, if I could sue them I would along with my mortgage company. Good luck to you all I really hope things change for you in time, it’s too late for me 😡

So sorry to hear of the problems you are having.   As you have a large house did you consider having lodgers or could you sell off part of the garden?

peteuk

Tulip99 said:

Thank you for your comments. I thought I would give you an update on my situation. As previously stated I am disabled and as far as I’m concerned the Government have nearly killed me!!! 

Although I agree that there should be help for those in such circumstances could you have not fixed your interest rate.  Interest rates go up and down all the time, I realise that we haven’t seen interest rates so high in a fairly long time, but it always a risk.

SMI rules are fixed, as mentioned with two reviews a year.  This usually covers any increase however the last year has been extra ordinary.   Interest rates should come down, which i know doesnt help at present but hopefully will be a light at the end of the tunnel.