Threatening Legal Action - New DSS rules on mortgage interest payments

[gemspan]

Hi there

 

I'm looking for some advice please.

 

Last September I had to give up my job for health reasons. I was working shifts and became very ill. I was unemployed from middle September until December when I started a new job. After only having been in the job for 2 months my new employer decided that they did not need a pr professional but wanted a graphic designer and website designer. I had to leave. This was at the end of January 2009.

 

Because less than 12 weeks had elapsed my claim was dealt with as a continuing claim for JSA. In January the rules changed from 39 week waiting time for interest on mortgage to be paid to 13 weeks. I phoned mortgage department of DWP and they advised me that I would qualify as I had been unemployed for more than 13 weeks.

 

I got the form, completed it and sent it to my mortgage provider who are Platform. They completed their part and sent it back to DWP. I heard nothing and was phoning them constantly, only to be told it was still being processed.

 

I called again last Monday and got a call back. I spoke to the same person who advised me that I would qualify for the new 13 week waiting period. She told me that because my claim was classed as a continuing claim I would not qualify under the new rules and would have to wait for 39 weeks. This means that my mortgage won't get paid until June 19th 2009.

 

My mortgage provider have written to me (I am 4 months in arrears!) and told me that if I dont start paying by the end of this month they are going to start legal proceedings for repossession. I am scared to death about this!!

 

I am looking for work and have kept them up to date with the situation every step of the way. I have an interview next Monday and have the chance of perhaps making a lump sum payment in June to clear the arrears completely.

 

Can somebody give me some advice please. I have written to my MP about this as it seems grossly unfair that I am having to wait the 39 weeks when somebody signing on now only has to wait 13 weeks.

 

I also thought that mortgage lenders had to do everything they possibly could to help people in this economic climate. Its not my fault I lost this last job but now I am so frightened that I am going to lose my home as well. I just feel like giving up, I am so depressed!!! It takes me all my time to get up in the morning and I wish I could see a light at the end of the tunnel.

 

Any help would be gratefully appreciated.

 

Thank you

Gemspan

 

PS: I also have claims outstanding for bank charges which would clear a huge lump of the mortgage arrears but I am getting nowhere with that either because of the stay. I feel very desperate and that really isnt like me at all.

[rory32]

I spoke to the same person who advised me that I would qualify for the new 13 week waiting period. She told me that because my claim was classed as a continuing claim I would not qualify under the new rules and would have to wait for 39 weeks. This means that my mortgage won't get paid until June 19th 2009.

According to their own website this is completely incorrect Jobcentre Plus - Working Age Benefits Support for mortgage interest

 

PS: I also have claims outstanding for bank charges which would clear a huge lump of the mortgage arrears but I am getting nowhere with that either because of the stay.

Have you tried claiming under hardship? If so, what stage are you at with your claim?

[gemspan]

Hi rory

 

No I havent tried claiming under the hardship rules. How do I go about doing that? Will I have to write to the banks. HSBC owe me about £900 and Lloyds TSB over £600. This would make a mighty dent in my mortgage arrears of approximately £2500.

 

I have sent the link to my MP. On looking at the link it would appear that they think I was getting help with my mortgage before I got my job. I was not getting any help at all with my mortgage.

 

gemspan

[rory32]

No I havent tried claiming under the hardship rules. How do I go about doing that?

First of all you need to write to the bank outlining your hardship e.g. currently unemployed with mortgage arrears and quantify the hardship you are under. The bank will then make a decision on whether or not to look into your case.

 

If they refuse you can go to the FOS or file at court. An alternative is to just file at court anyway in which case the bank will apply for your claim to be sisted. You can oppose the sist on the grounds of hardship. This has successfully been done recently with the bank settling in the end for the full amount claimed.

 

While any route you go down to claim under hardship is going to take weeks to potentially get your money back the legal proceedings for repossession also will take many weeks. A writ would have to be issued to start the repossession process (normally a letter would be received from their solicitors first informing you that they have been instructed to lodge an initial writ with the sheriff court and will be doing this on such and such a date) and you would have 21 days from service of the writ to lodge your response. You would also be informed of your rights under the Mortgage Rights (Scotland) Act and given the opportunity to either defend or make an offer of repayment over time of the arrears. Offers of repayment are normally accepted either by the mortgage company or, if not, by the sheriff.

 

The link below gives more details on mortgage arrears and the repossession process in Scotland.

Mortgage Rights (Scotland) Act 2001

 

If things do get to this stage you must get legal advice and assistance. As you are currently unemployed you will qualify for legal aid and all you have to do to apply for this is fill out a very simple form that the solicitor will provide you with.

 

I would certainly get onto the DWP mortgage people in the morning and try and get them to sort out your claim as it would appear you are not receiving what you are entitled to. At least this will start to get things heading in the right direction.

[gemspan]

Hi there

 

I look after my elderly next door neighbour. At the moment I do all her housework, washing, go in every day to clean up and make her a cup of tea etc., She is becoming increasingly confused and I feel she now needs more help.

 

I recently lost my job and am claiming JSA. I have only just reached the point where my mortgage will be paid. I was wondering if I were to care for my neighbour officially and claim carers allowance, would I be able to still claim JSA and my mortgage payment entitlement? Its not very clear on the DWP website.

 

It says that my JSA would have a premium of £29.10 but I don't know if that's in place of my mortgage payment or simply a payment because of the work I do for my neighbour.

 

I'd be pleased if somebody could help me out here.

 

Thank you

Gemspan

 

PS: Also, if I get a job I notice I can only earn £95 after tax. Is there a limit on the number of hours you can work?

[kinkyklee]

hi yes u can earn £95 per week before its taken into account...you would only be able to claim carers allowance if your friend/neighbour recieved full benefit of disability living allowance thats full care and mobility component..your jsa would stop because carers allowance is a taxable income...obviously classed as a working income...speak to your friend to see if she does get dla because if you could claim ca and work as well that would be better than just claiming ca and losing jsa...not sure how much jsa is weekly but sure you dont want to lose it..

[ErikaPNP]

Your JSA would NOT stop if you received carers allowance.

 

You can claim Carers Allowance and Jobseekers Allowance at the same time, but there are restrictions, if the JSA is income based, you could only receive the carers premium of £29.50 rather than full carers allowance. Your council tax benefit may be reduced if you receive carers allowance. It is also worth knowing that benefit the person you are caring for may be reduced if you receive carers allowance.

 

Your neighbour would need to be in reciept of either Disability Living Allowance or Attendance Allowance and you would need to be spending at least 35 hours per week caring for him to be eligible for carers allownace.