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Mortgage Interest Support, MI12 and JSA3


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Morning Guys,

 

I was hoping that someone in this forum would be able to give me some advice, or at least share their experiences on the above.

 

After much arguing with the Job Centre, they finally gave me an MI12 form, which I have posted to my lender, and they have posted it on to the DWP - they have not got it yet though. This is the form where you tell them your obligations and the lender has to confirm the details amd post it back to the DWP.

 

They also gave me a JSA3 form to apply to go on to Income Based JSA, as I believe you have to be on the Income Based JSA to get help with the mortgage.

 

I have read http://www.dsdni.gov.uk/is8.pdf which seems straight forward - it refers to Income Support but applies to JSA and ESA according to the leaflet.

 

The Job Seekers have been on the phone this morning, just to clarify one small detail, and the lady there seemed to think I would be getting help with the mortgage, but she was unable to confirm anything (as per usual).

 

I have had a meeting with the CAB this morning, and they seemed to know about HMSS but nothing else, and didn't seem to have much hope! But when I spoke to him about the MI12 and JSA3 he has little knowledge and was asking me to keep him posted in case he can learn something!

 

Given the above, do anyone know the procedure for the Mortgage Interest Suppost and the likelihood of my receiving some help? The procedure and the time it is likely to take?

 

I am single, no dependants, and about £1k in arrears on the mortgage.

 

This is flippin typical of the current situation - the Govt promise all kinds of help, but it appears you need some kind of devine intervention to actually get any help? :mad:

 

Can someone give me a few pointers or even better, set my mind at ease?

 

All appreciated.

 

 

FX:|

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Hi Blurred I currently claim income support and i get mortgage interest payments from the dwp they pay direct to them and when you ring up t find out about payments you have to leave a message for the mortgage section usually through income support and they call you back within 2-3 hours and they will go through it with you it used to be 39 weeks but they changed it to 13 i dont know if it has gone any lower hope this helps.:)

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Hi Mich,

 

The info you have given seems to be along the lines of what I am slowly fathoming out - so thanks very much for that. Just hearing someone else interpret things the same way as me helps a lot.

 

I have left a message with the Benefits Delivery Centre, and of the the mortgage section are due to call me back today or in the morning.

 

I have been told my JSA3 has been processed and therefore I am now on JSA (IB), which I understand is what I need to be on.

 

I have a mate who is living with me currently (unemployed but not claiming), and paying me no rent - I am sure they will have something to say about that :rolleyes:.

 

I will wait for a call from the benefits mortgage section, and will report back.

 

Many thanks for your interest.

 

FX

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Well, I am impressed. A lovely lady just called me from the Mortgage Section.

 

She queried a few details, one of them being that I was on ESA© when i first came out of work (such a sympathetic ex-employer:mad:) which then switched to JSA©, and has now gone to JSA(IB), following my completing a JSA3. If you can follow that...

 

She looked at this, and said that my claim would be backdated so my claim would start Mid July, so payment should kick in from Mid Oct, but she would hopefulyl call me back asap (which she said would be next couple of days - but she did say she would try to be quicker).

 

There is the update if anyone is interested, and thanks for your interest!

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Hi there missed your post school run! i'm glad that you kind of know where you are! When they calculate it all they usually send a payment of the backdating to your mortgage company so hopefully your arrears may get cleared then they send some every 4 weeks then if theres a shortfall you pay the rest.

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If they pay @ 6.08%, then there will be an overpayment :) as my interest rate is quite a bit less than that! I take it the overpayments will go to reducing the arrears and then the capital?

 

No chance of my getting the extra do you know? I suppose the best thing would be to pay off the capital, but living on JSA is something I have never had to do :eek:. Hard times... must get a job!

 

But we will see what they say about my mate living here!

 

Fingers crossed, and touch wood!

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I dont know about the rules and regs maybe someone else will help you with that but i just want to say good luck if they pay more at least it will take the pressure off you for a while till you get sorted:)

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blurredFX they will pay whatever your interest rate is UP to 6.08% its a ceiling figure noy a set figure. However if your mortgage came down during the period they will pay up to 6.08% they would still pay the higher figure.

The rate they will pay as a maximum is set at the BOE rateplus I believe 1.51% the reason it is so high at the moment is that the chancellor specifically extended it at the higher rate first for 6 months and then again for another 6 months and it is set to revert to its "normal" rate in January.

Sorry to disappoint.

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I have heard from them this morning and they amount is to be backdated to three months after I started my initial claim.

 

Just so people know (and can hopefully help others), I started on CB ESA, went onto CB JSA, then filled in a JSA3 in order that I went on IB JSA. The thirteen weeks started from my original CBJSA claim - not as some have suggested 13 weeks from getting IB Benefits.

 

The fact that I had an underlying entitlement to IB benefits was key to this. Had I had a wife with a job, or savings during that period for example, I would not have the underlying entitlement to IB Benefits.

 

It all went through pretty quick, though I had to fight tooth and nail to get the info that I required - not sure why. Even teh CAB had no knowledge of Mortgage Interest Support.

 

blurredFX they will pay whatever your interest rate is UP to 6.08% its a ceiling figure noy a set figure.

 

This is not my understanding of the situation. They told me today they will be paying 6.08%. From my research, in the early nineties they tried to apply individual rates to individual circumstances, but it proved a nightmare to administrate, plus they ended up with massive over payments as people were less than keen to report deductions in the interest rates. As I understand it 6.08 is paid to everyone, some will be lucky others will not - it IS a set figure, and NOT a ceiling.

 

The rate they will pay as a maximum is set at the BOE rateplus I believe 1.51% the reason it is so high at the moment is that the chancellor specifically extended it at the higher rate first for 6 months and then again for another 6 months and it is set to revert to its "normal" rate in January.

Sorry to disappoint.

 

I understand the 1.51 above BoE base rate is the old rate, and that the Govt extended the high rate in light of the credit crunch which still has not abated (just look at LIBOR spreads).

 

Mercy, can you tell me where the Government has said that the rate will revert to the old rate as of the new year? I have had a good look and cannot find any reference. My understanding was that it would be reviewed, but that they had made no specific promises or statements. If you could point me in that direction I would be grateful.:eek:

 

In the mean time, it takes the possibility of reposession of the table, even if it is only until after Jan, wich is a massive help in itself.

 

Look forward to your feedback Mercy, and of course any others!

 

FX:)

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The thirteen weeks started from my original CBJSA claim - not as some have suggested 13 weeks from getting IB Benefits.

Slight mistake: It started from my Contributions Based ESA claim - the first claim I made! Just for the sake of accuracy.

 

In fact I am going to check on that 5 week period mentioned because I never had any readjustment!

 

Do you mean the period:

 

A corrective adjustment took place, for a period of five weeks, from 2 February to 8 March 2009. During this time, customers received an increase in their benefit to compensate them for the earlier reduction. Then, from 9 March, benefit was readjusted to the correct level with the SIR set at 6.08%

 

I suspect if it is, then it will all have been done automitically and paid direct to your mortgage people - but here I am making all kinds of assumptions, such as they pay your mortgage company direct.

 

Any idea on what is due to happen to the 6.08 rate as of the end of Dec 09? I will keep looking, but if you see anything, do let me know!!!

 

Thanks for your input guys (esp. Mercy)

 

Cheers,

 

 

FX:)

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yes I do mean that period nothing shows on my mortgage statements though.

With regards to the % I assume it will revert to 1.5% + BOE rate which would be 2%.

Most of us are however are on LIBOR rate which is currently 0.6% so there would be a slight discrepancy of er about £8 per hundred grand!

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regards to the % I assume it will revert to 1.5% + BOE

 

Just an assumption then? That's fine, I would like to know what the Govt thinking is. My rate is pegged to the Barclays Bank Base Rate, though I think it says BoE on my Key Facts sheet - either way, BBBR has not deviated from the BoE so I am OK on that basis.

 

I hope that the Govt look at the prospects of the likes of me re-mortgaging, realising it isn't possible so am stuck on the high SVR, and then keep it at an elevated rate for a while yet - till I find a job that pays anyway!

 

Any pointers welcome!

 

FX

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Just an update on my research, if it is of any interest or help to anyone.

 

It seems that the 6.08% rate was brought in in the Pre-Budget report in Nov 20008, with effect from Jan 09.

 

In the Budget 09, they extended the 6.08% rate for a further six months till Jan 10.

 

From this, I would deduce that the next announcement regarding the rate will be in the next Pre-Budget report, which the treasury are due to give on 9th December 2009. The PBR 08 talks of SMI, but I could not find the specific paragraph - if anyone can, do post it up!

 

Pre-Budget Report 2009 - HM Treasury

 

Hope this proves to be of assistance to someone (and I shall be watching with a very close eye;))

 

 

Blurred:)

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  • 3 weeks later...

Hi,

 

I am going through similar claim but not going to get any help from the Government on my MI12 Claim!!

 

I think when you read this post and compare to the topic starter post that the crucial factor is him being single and me being married! To me this is another false promise from the Govenment and another penalty for being married!!

 

Here is some background:

 

My job came to a close in July 09. I am married with 2 dependant children living at home. Large mortgage just about covered by the current value of the property. My wife works 24hours part-time per week. I am currently on Job Seekers Allowance (contributions based £64.30pw).

 

I "wait" the 13 weeks and then apply for the Mortgage Interest Relief on the MI12 form. I have up untill this point been claiming Job Seekers Allowance on a Contributions based claim. I send the MI12 to my Mortgage lender to complete their part and it is sent to Job Centre Plus.

 

Job Centre Plus then send me a JSA3 form which is a Job Seekers Allowance claim under Income Based rules rather than the Contributions based claim. They also want further information and proof etc.. etc... of the details behind my mortgage as the lender said part of it was a remortgage. So I supplied all the additional information that they asked for.

 

I am now told that my claim under the Morgage Interest Relief (MI12) is rejected because of my wifes part-time hours ie. 24 hours per week. At this point the key is 24 hours per week that they are interested in - not how much 24 hours gives in monetary value!!

 

My Job Seekers money under contributions based claim comes to a close in January (ie. after 26 weeks). I have also enquired about my wife getting Family Tax Credits and again as she has (and expected to) continue to work 24 hours per week and earn over the £13k threashold in this Tax year then she will not be entitled to Family Tax Credits.

 

£13k is hardly mega bucks!!

 

After hearing about and reading along with the Government hype on how they will help and support home owners it is quite clear that for those in similar position to me that there is NO help what so ever.

 

Any comments?

 

Thanks,

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The daft thing is, if your wife lost her job, you would probably qualify, I would have thought!! (Not if she just walked out though)

 

It's daft - there is you and your family doing your best, working part time etc., with no help, and me, a single fella gets his interest and some of the capital paid off as well - standard interest rate is higher than mine is anyway, so I get extra, which actually comes off my arrears from the three months I was waiting - then the capital!

 

There is the HMSS (Homeowner Mortgage Support Scheme) that allows you to defer some payment for a while without worrying about losing your roof. That is something you should look at!

 

Holler if I can be more help.

 

Blurred:)

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I have also enquired about my wife getting Family Tax Credits and again as she has (and expected to) continue to work 24 hours per week and earn over the £13k threashold in this Tax year then she will not be entitled to Family Tax Credits.

 

Who told you this info? I have often come across people within the Council and DWP are prone to mistakes verbally - what they don't know they make up, so I would double check.

 

have you tried Start Calculation - you should.

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  • 2 weeks later...

Hi,

 

I would be interested to know if anyone has actually been successful in obtaining help from their lender under the Homeowners Mortgage Support Scheme. We have been enquiring about this scheme since APRIL this year and have been passed from one department to another and still no further forward despite our lender admitting that we satisfy all the criteria!

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hiya dont know if i can be any help but im currently going through the mortgage rescue scheme in the final stages now just waiting for the offer to come out from the housing assocaition it is extremely stressful process as the process is quite long but its just to make sure that everything is being done correctly i havent heard from them for over a month now but as they say no news is good news...

 

Anyway back to the point i went to the local council homeless centre back in June to ask for help i was lucky that the man i saw is dedicated to this area, i think each council has someone who works in this area. there are a couple of options they can either buy u out and you pay rent to the local housing assocaition or they loan you and amount which goes to part rent/part buy i think not sure about the latterone as im looking to sell completing im also with spml and for me id rather getout now while i can. i dont know about going to the mortgage lender i find them unhelpful. but since the council have intervened(they have acontact within capstone) all action has been stopped and i just pay what i can each week and they also get payments from income support as well and i dont here from them anymore

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