Mortgage Interest Support, MI12 and JSA3

[nks22]

Mine's an interest-only mortgage but the terms allow me to make lump sum or regular overpayments at any time. Any overpayments "will reduce the balance on your mortgage account".

[BlurredFX]

Any overpayments "will reduce the balance on your mortgage account".

 

Hmmmmm. Would seem like a sensible. Who is your lender?

 

I guess I should dig out my mortgage paperwork, but i dread to think which pile of papers that will be in. Could well be with my solicitors....

 

Ah well, we are getting somewhere - keep it up!

 

Thanks,

 

 

Blurred:)

 

FX

[nks22]

Bank of Scotland. I think it's a fairly common arrangement, though.

[mercyblue]

Any overpayments "will reduce the balance on your mortgage account".

 

Same here. Don't expect to get any money back off the mortgage co if you are in credits on payments.

I know someone who found out he was 5K in credit in payments on his mortgage (nothing to do with MIS). Went to the bank "can I have my money?" bank "no" customer "why not its mine?" bank "er no you just owe us 5k less now". They were able to of course use the credit as effectively a payment holiday if they had wanted.

But I think it puts the point across you are still in debt to them for xx thousanf

[BlurredFX]

Any overpayments "will reduce the balance on your mortgage account".

 

Same here. Don't expect to get any money back off the mortgage co if you are in credits on payments.

I know someone who found out he was 5K in credit in payments on his mortgage (nothing to do with MIS). Went to the bank "can I have my money?" bank "no" customer "why not its mine?" bank "er no you just owe us 5k less now". They were able to of course use the credit as effectively a payment holiday if they had wanted.

But I think it puts the point across you are still in debt to them for xx thousanf

 

Yep, makes sense, seems sensible.

 

Ah well, I will be a little less excited about possibly getting something back, but I suppose it is "money in the bank" if I need to possibly take a payment holiday in future.

 

Would be nice if GE could give me a straight answer. I will keep trying though.

 

Blurred:)

[andydd]

Yep, makes sense, seems sensible.

 

Ah well, I will be a little less excited about possibly getting something back, but I suppose it is "money in the bank" if I need to possibly take a payment holiday in future.

 

Would be nice if GE could give me a straight answer. I will keep trying though.

 

Blurred:)

 

I've alwaysw thought that this is pretty obvious, I'd be very suprised if any mortgage lender returned overpayments, after all, lets just think ourselves lucky if we get 6.08% but luckily have interest rates of far lower.

 

If you have a second mortage, (I have one with Nemo for some house repairs), then that may be paid directly to you (mine is), however the rate on that is 9%, plus the DWP have only allowed a small percentage of that anyway.

 

Andy

[MissFluffy]

Hi BlurredX - Yes I am getting the 6.08% but it hasn't started yet - think its the 31st March so i'll let you know about what happens to the overpayment.

 

From what I can gather, different banks seem to have different policies regarding the overpayments.

 

HSBC did tell me they would credit back to my account but to be honest trying to actually find out about how the whole procedure works has been a real struggle.

 

Like you say - the money isn't a payment to the bank, it's a payment to you to pay your mortgage. The money goes directly to your bank to ensure that it actually gets paid and any overpayments should be directed back to you.

 

I'll keep you posted!!

[MissFluffy]

Just to add - I'm counting my lucky stars that I get the 6.08% in the first place so if the bank want to keep any overpayment to reduce my arrears then i'll be happy with that!

[BlurredFX]

Hi Miss Fluffy,

 

Thanks for sharing - my overpayment has so far been reducing my arrears, and they will now disappear very soon.

 

Just to keep things up to date, I spoke to the Mortgage Co earlier, and the fella I spoke to seemed very well informed (was on a different number to the one I phoned - different department I suspect - not the dept I suspect of trying to change my terms).

 

Anyway, he says that they can hang on to the overpayment, or they can return it to me, completely at my discretion. He also said they would remove the cheeky £40 admin charge they had "mistakenly" applied, despite my arrangement (via the DWP) with them.

 

Ah well, still no straight answer, I guess I will only get one of them when the situation is a reality.

 

I have yet to spot anything of relevance in the Budget - perhaps unsurprisingly - but note that the info I have suggests that it is confirmed until June 10, thus far.

 

Anyone else seen anything in the press?

 

Blurred:)

[nks22]

From today's Budget:

 

"The Support for Mortgage Interest scheme, which I enhanced during the recession, is already helping 220,000 homeowners who lost their jobs.

"To maintain this help during the recovery, I will continue to pay this support at the higher rate for another six months."

 

 

I'm not sure where that six months takes it, though.

[BlurredFX]

BINGO!

 

I have been reading around, and have looked at the CML website and their official response to the 2010 Budget, which can be found in full here:

 

CML response to 2010 Budget

 

The interesting bit for is is:

 

The CML also welcomes the retention of the existing higher rate of Support for Mortgage Interest until the end of the year. Although wider long term reform would be desirable, this is a sensible and helpful measure that means those people who do qualify for help under the extremely tight eligibility criteria are at least likely to see their mortgage interest payments met under the scheme.

 

I guess a new Government could change this post-election - but how much of an uproar would that cause?

 

Anyways, hope this help,

 

 

Blurred:)

 

Come on, that has to be worth a tip of the scales!!!

[BlurredFX]

NKS seems we were both looking and posting at the same time!! Get in!

[obewan]

Good to see the budget extended the current high rate to Dec 2010.

 

Hopefully the Tories won't scupper this if they win the election ...

[Silverado 2011]

Thanks BlurredFX for pointing me in the direction of this thread. Basically MIR saved me losing my house although I was given incorrect advise by those wise sages at the Jobcentre from the start although I constantly asked if help was available for home owners. I've learnt not o speak to the people in the Job Centres but to seek advice from the people on the phones, they seem to be much more knowledgeable.

 

I managed to rack up significant arrears from being made redundant last summer, I was initially advised that I wasnt entitled to MIR until 26 weeks but Ell-enn came to the rescue when my mortgage company were granted a repossession order on my property and I was advised by Ell-enn that I would be eligible after 13 weeks.

 

The suspension of the order is subject to the same payments beings made to my mortgage company from DWP so any change in either the DWP rate (thank goodness its fixed for another 6 months) or an increase in interest rates will mean I'll liable for the shortfall.

 

Having an interest only mortgage means that I'm also in a position where my mortgage company are receiving more than my monthly repayments. Its fantastic for the arrears. I'm just hoping that I gain employment before any of the rates change or I reach the 2 year cut off mark. I'm applying for at least 10 jobs a day but its still dead out there.

Edited March 25, 2010 by Silverado 2011

[BlurredFX]

Basically MIR saved me losing my house although I was given incorrect advise by those wise sages at the Jobcentre from the start although I constantly asked if help was available for home owners. I've learnt not o speak to the people in the Job Centres but to seek advice from the people on the phones, they seem to be much more knowledgeable.

 

A carbon copy of my situation!!! I always suggest people visit Start Calculation to check what they can get.

 

Fortunately for me, I used to work in finance, so am quite aware of planned Govt spending, such as this.

 

I have posted some comments on your thread that I hope help, but not sure of I am getting bogged down in the detail. Holler this way if I can clarify anything, or indeed you come across some gem of info that might help.

 

FX

[Laywoman]

From today's Budget:

 

"The Support for Mortgage Interest scheme, which I enhanced during the recession, is already helping 220,000 homeowners who lost their jobs.

"To maintain this help during the recovery, I will continue to pay this support at the higher rate for another six months."

 

 

I'm not sure where that six months takes it, though.

 

It was due to end in June (and before that Dec 09) so now it will end in December 2010.

 

I would be surprised if any lenders actually returned the 'overpayments' to the borrower. The money is designed to prevent repossession by paying mortgages not to bump up monthly income for spending on other things. It has a specific purpose and I think its quite right that it does.

 

If it pays off come capital or arrears for people too, then that is great.

[BlurredFX]

It was due to end in June (and before that Dec 09) so now it will end in December 2010.

Yep - that is what we worked out, so it is all good.

 

I would be surprised if any lenders actually returned the 'overpayments' to the borrower.

I have given up being surprised at what the state and/or the banks do!! If you read the thread, we are trying to fathom out which banks do what with the overpayment, assuming their is one. GE have said to me that they keep the money, but another department said they will pay it back. But, it seems that a few of us are going to find out for sure soon - which will take the guessing out of it.

 

LW, are you getting MIS or anything? Any experiences to share?

 

Blurred:)

[andydd]

It was due to end in June (and before that Dec 09) so now it will end in December 2010.

 

I would be surprised if any lenders actually returned the 'overpayments' to the borrower. The money is designed to prevent repossession by paying mortgages not to bump up monthly income for spending on other things. It has a specific purpose and I think its quite right that it does.

 

If it pays off come capital or arrears for people too, then that is great.

 

I agree.

 

My experience of claiming this is that it did involve a lot of paperwork to and from my local BDC office, at times they wrote back asking for the same documents time and time again...ggrr !

 

The most complicated part is that I applied for the costs of a second mortage taken out for various repairs, you can be elligible for this depending on what you spent the money on..for example..it wouldnt cover a luxury swimming pool you installed but should cover essential repairs and items such as a bed, cooker, bath, etc. I had quite a lot of to and fro-ing with the BDC where we argued about what was and wasn't covered, they changed their mind quite a few times about this, at the end of the day it only covered a small part of the loan but it was a few extra £ which was helped top up my JSA. If you have a flat that is a leasehold property you can also claim payments towards Ground Rent and Service Charges which is worth inquiring about if you havn't already done so.

 

Andy

[BlurredFX]

If you have a flat that is a leasehold property you can also claim payments towards Ground Rent and Service Charges which is worth inquiring about if you havn't already done so.

 

I live in a flat. I would claim it, but I am in dispute with the management company so I cant really claim it while I am not paying it - though I did note it on the form, so once the dispute is sorted, hopefully it will get back dated.

 

My experience of claiming this is that it did involve a lot of paperwork to and from my local BDC office, at times they wrote back asking for the same documents time and time again...ggrr !

Mine was the exact opposite, filled in the form, sent it to Mortgage Co, they sent it to DWP, and it was sorted. But then there was no second mortgage on my property.

 

at the end of the day it only covered a small part of the loan but it was a few extra £ which was helped top up my JSA

Do they pay this direct to you? Are the overpayments on the original loan covering the second loan as well, hence you end up left with a couple of quid on your pocket Andy?

 

Blurred:)

 

PS Are you the same andydd that's on llz?

[Laywoman]

I agree.

 

My experience of claiming this is that it did involve a lot of paperwork to and from my local BDC office, at times they wrote back asking for the same documents time and time again...ggrr !

 

The most complicated part is that I applied for the costs of a second mortage taken out for various repairs, you can be elligible for this depending on what you spent the money on..for example..it wouldnt cover a luxury swimming pool you installed but should cover essential repairs and items such as a bed, cooker, bath, etc. I had quite a lot of to and fro-ing with the BDC where we argued about what was and wasn't covered, they changed their mind quite a few times about this, at the end of the day it only covered a small part of the loan but it was a few extra £ which was helped top up my JSA. If you have a flat that is a leasehold property you can also claim payments towards Ground Rent and Service Charges which is worth inquiring about if you havn't already done so.

 

Andy

 

Yes it can get complicated for second mortgages where the money was used for a variety of things, but as you say, its worth the tooing and froing as every little helps.

[Laywoman]

Yep - that is what we worked out, so it is all good.

 

 

I have given up being surprised at what the state and/or the banks do!! If you read the thread, we are trying to fathom out which banks do what with the overpayment, assuming their is one. GE have said to me that they keep the money, but another department said they will pay it back. But, it seems that a few of us are going to find out for sure soon - which will take the guessing out of it.

 

LW, are you getting MIS or anything? Any experiences to share?

 

Blurred:)

 

Yes I have read the thread and was very surprised that a lender has even contemplated giving the borrower any surplus. As the majority of those in receipt are likely to have some arrears, then it seems sensible to let it pay off those. I am going to have a nose into it as its an interesting point.

[BlurredFX]

As the majority of those in receipt are likely to have some arrears, then it seems sensible to let it pay off those.

 

I had arrears, which are now ALMOST paid off - the sensible approach!! One more month I think, then I should hopefully have some surplus, and I will find out for sure what happens!

 

I am going to have a nose into it as its an interesting point.

 

Keep us all posted on what you find!

 

Blurred:)

[andydd]

Thanks BlurredFX for pointing me in the direction of this thread. Basically MIR saved me losing my house although I was given incorrect advise by those wise sages at the Jobcentre from the start although I constantly asked if help was available for home owners. I've learnt not o speak to the people in the Job Centres but to seek advice from the people on the phones, they seem to be much more knowledgeable.

 

I managed to rack up significant arrears from being made redundant last summer, I was initially advised that I wasnt entitled to MIR until 26 weeks but Ell-enn came to the rescue when my mortgage company were granted a repossession order on my property and I was advised by Ell-enn that I would be eligible after 13 weeks.

 

The suspension of the order is subject to the same payments beings made to my mortgage company from DWP so any change in either the DWP rate (thank goodness its fixed for another 6 months) or an increase in interest rates will mean I'll liable for the shortfall.

 

Having an interest only mortgage means that I'm also in a position where my mortgage company are receiving more than my monthly repayments. Its fantastic for the arrears. I'm just hoping that I gain employment before any of the rates change or I reach the 2 year cut off mark. I'm applying for at least 10 jobs a day but its still dead out there.

 

I started another thread some months ago now regarding wether if I took on a 3 month contract job I would be entitled to go back to SMI straight away instead of doing the 13 week waiting period again, the advice I got from the Job Centre, both in person and over the phone varied from yes, no,maybe, and quoted different periods where the rapid reclaim system was eligible from 6,13,26,52 weeks !..It was unbelievable and I had to push very hard to eventually get someone from DWP/BDC to phone me back with the correct verified informatiion, anyway my 3 month contract has ended so Im about to sign on again monday, so we shall see.

 

Andy

[nks22]

I had to push very hard to eventually get someone from DWP/BDC to phone me back with the correct verified informatiion

 

Which was what?

[BlurredFX]

I started another thread some months ago now regarding wether if I took on a 3 month contract job I would be entitled to go back to SMI straight away instead of doing the 13 week waiting period again, the advice I got from the Job Centre, both in person and over the phone varied from yes, no,maybe, and quoted different periods where the rapid reclaim system was eligible from 6,13,26,52 weeks !..It was unbelievable and I had to push very hard to eventually get someone from DWP/BDC to phone me back with the correct verified informatiion, anyway my 3 month contract has ended so Im about to sign on again monday, so we shall see.

 

That's one of my concerns, and I would like to know the answer, so point me in the direction of your thread or keep us up to date.