We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
JSA Mortgage Interest Support
Options
Quinag
Posts: 2 Newbie
As a JSA claimant Ive just started to receive mortgage interest support payments. My mortgage is currently in a fixed rate period with an interest rate of 5.99% close to the current 6.08% standard rate used by DWP to determine the amount of benefit paid.
Very soon my mortgage reverts to a standard variable rate which will be significantly lower than 6.08%. Am I required to keep DWP informed of interest rate changes to my mortgage? Will the 6.08% rate continue to be paid irrespective of the fact that the actual interest rate may be much lower (I hope so - will help towards other costs). What are the rules? Is the 6.08% (or prevailing standard set by DWP) a maximum or is this rate paid regardless even if the actual interest rate of the claimants mortgage is lower?
Very soon my mortgage reverts to a standard variable rate which will be significantly lower than 6.08%. Am I required to keep DWP informed of interest rate changes to my mortgage? Will the 6.08% rate continue to be paid irrespective of the fact that the actual interest rate may be much lower (I hope so - will help towards other costs). What are the rules? Is the 6.08% (or prevailing standard set by DWP) a maximum or is this rate paid regardless even if the actual interest rate of the claimants mortgage is lower?
0
Comments
-
AFAIK, the DWP has one set rate for everyone irrespective of what their personal mortgage rate is.0
-
AFAIK, the DWP has one set rate for everyone irrespective of what their personal mortgage rate is.
This is correct. It is due to be reviewed again soon, I'm thinking in December but it is late so I could be wrong on that!
OP, you should be aware that the money will be paid directly to your lender, so you will not be able to put the extra money towards anything else.Gone ... or have I?0 -
Hi, I am a newbie. Have a question. I applied for JSA IB and mortgage help 8 weeks ago and am still waiting to hear from DWP. Meanwhile I had to pay monthly mortgage twice of £390.20 while waiting. So if DWP do decide to ok my claim and pay mortgage directly to the lender then my morthgae account would be in credit and my savgings reduced. How will I sort this out. Should I have not paid my mortgage and have waited for the outcome of my claim? Not sure what to do. Any advice please.0
-
Mortgage help only kicks in after the 13 week qualifying period so you have to maintain payments until at least that point.aanguralla wrote: »Hi, I am a newbie. Have a question. I applied for JSA IB and mortgage help 8 weeks ago and am still waiting to hear from DWP. Meanwhile I had to pay monthly mortgage twice of £390.20 while waiting. So if DWP do decide to ok my claim and pay mortgage directly to the lender then my morthgae account would be in credit and my savgings reduced. How will I sort this out. Should I have not paid my mortgage and have waited for the outcome of my claim? Not sure what to do. Any advice please.0 -
Hi Nasa, I have been on JSA (credits only) since January 09 and JSA (contribution based) 6 months prior to January 09. My insurance paid mortgage for 1 year since July 2008 until July 2009. So I have completed that period already! Thanks.0
-
Why is it Credits Only?aanguralla wrote: »Hi Nasa, I have been on JSA (credits only) since January 09 and JSA (contribution based) 6 months prior to January 09. My insurance paid mortgage for 1 year since July 2008 until July 2009. So I have completed that period already! Thanks.
Its possible you wont get any help.0 -
AFAIK your waiting period will only start once your insurance ceased, and therefore would not have started until July, so you will still be in your waiting period.
Could I ask why you are on credits only? Do you have other income, or savings? This would also affect your entitlement to SMI.
(Crossposted!)Gone ... or have I?0 -
So -
It would appear that the DWP set standard rate of interest (currently 6.08%) is used to determine the support paid completely irrespective of the actual interest rate being applied to the claimants mortgage -
This beggars belief! There are many people whose mortgages have a standard variable rate guaranteed to be within 1% -2% of the base rate.
If this really is the case then hypothetically a claimant with a £200K outstanding mortgage balance with a current interest rate of say 2% might receive SMI payment almost £700 a month MORE than the interest actually due on the mortgage - effectively a £700 a month capital contribution!
My original question - is the 6.08% (or whatever the prevailing DWP determined standard interest rate) applied irrespective of the actual mortgage interest rate?0 -
So -
It would appear that the DWP set standard rate of interest (currently 6.08%) is used to determine the support paid completely irrespective of the actual interest rate being applied to the claimants mortgage -
This beggars belief! There are many people whose mortgages have a standard variable rate guaranteed to be within 1% -2% of the base rate.
If this really is the case then hypothetically a claimant with a £200K outstanding mortgage balance with a current interest rate of say 2% might receive SMI payment almost £700 a month MORE than the interest actually due on the mortgage - effectively a £700 a month capital contribution!
My original question - is the 6.08% (or whatever the prevailing DWP determined standard interest rate) applied irrespective of the actual mortgage interest rate?
Your question has been answered above.Gone ... or have I?0 -
You answered your own question.So -
It would appear that the DWP set standard rate of interest (currently 6.08%) is used to determine the support paid completely irrespective of the actual interest rate being applied to the claimants mortgage -
My original question - is the 6.08% (or whatever the prevailing DWP determined standard interest rate) applied irrespective of the actual mortgage interest rate?0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.1K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.6K Spending & Discounts
- 244.1K Work, Benefits & Business
- 599K Mortgages, Homes & Bills
- 177K Life & Family
- 257.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards