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morgage interest dwp payments

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Hi just had money taken by my building society the normal shortfall payment but they took £50 more this month contacted the dwp.

They said my morgage debt had gone down from the previous year therefore they reduce the morgage interest payment wich will now cost me more every month.

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Hi need advice regarding morgage interest payments from dwp.

 

Ive just had my weekly payments reduced by the dwp on the basis of that my morgage debt has decreased by £3000 on the balance owed

thus i now have to find another £17 amonth more on the shortfall allthough my monthly payments have not been reduced by the bank.

 

When i questioned the dwp on this they said the annual statement which they requested from my bank showed the debt had been reduced

they reduce the morgage interest is this correct.

 

Also i have a second morgage which is all interest nothing taken of the capital wich cost £75 amonth but they only allow me £10 towards this please anyone could you offer advice.

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Not really up on this but i do know that if you have an Interest Only Mortgage (Endowment) the amount paid from DWP stays the same.

If you inn turn have paid off some of the Capital then DWP will only pay the Interest On The Capital Outstanding. I had the same problem.

This is my best answer.

whatsupdoc

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Really concerned about the latest cuts from the dwp regarding payment towards my morgage interest payments. Yet again another £21 aweek taken from this leaving me to find another £80 amonth all because of david camerons budget how can this be considered to help unemployed people this is disgusting,

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According to the dwp my circumstances have changed so my morgage interest payments have beeen reduced by 3%. Why because of mr cameron and mr clegg where am i to find another £85 amonth from and why havnt the consumer action group not jumped on this and try to challenge this disgusting action wich know doubt will possibly make people like me homeless. This i understand is to make it fair for those who are fortunate to be working im not a scrounger i was forced out of my job with no redundancy a company i worked for 10 years for .

WE NEED HELP FROM THIS FORUM.

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bump

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Hi shifty

 

Just wondered why DWP think your circs have changed. Surely they would only have paid interest anyway? Did your interest rate go down or is there some other reason?

 

Just trying to get the full picture.


 

What's Best for You?

 

 

The Consumer Action Group is a free help site.

Should you be offered help that requires payment please report it to site team.

 

Alliance & Leicester Moneyclaim issued 20/1/07 £225.50 full settlement received 29 January 2007

Smile £1,075.50 + interest Email request for payment 24/5/06 received £1,000.50 14/7/06 + £20 30/7/06

Yorkshire Bank Moneyclaim issued 21/6/06 £4,489.39 full settlement received 26 January 2007

:p

 

Advice & opinions given by Caro are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

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The reason the DWP are paying less is because they have changed the rules, all been kept a bit quiet, I have read nothing in the press and I only received a letter which breakdowns how your benefits are worked out, no warning or explanation letter that they would be paying half the current interest rate. They were paying everyone a flat rate of around 6%, however, some were being over paid by £1000's as they were on fixed rates of around 3%, so to makes things simpler and fairer (their words) everyone gets a flat rate of 3.6%, so if you are still below that they will continue to over pay you, or if like me and many others its nearer 6%+ they will only be paying half, leaving you to find the rest from WHERE?, I am severley disabled, my wife is my carer, how can this be fair, why cant they just pay people what their lenders are charging them, no more no less, thats fair, sure there is worse to come. Its a pity they are painting all those without job or disabled as lazy scroungers, the way things are going those who are looking down on us now will soon be joining us with all the job losses, so it would be very wise not to be to quick to judge

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I'm glad to see this raised as an issue, the con/dems shortsighted policy can only lead to increasing the costs taken up by other agencies i.e. councils, social services and the NHS. Where's the sense in making someone unable to afford their adapted home and force them to move and have the council etc. pay again to adapt their new home?

Under the European Convention on Human Rights it impinges on government to carry out an impact assessment re. the disabled and to ensure that changes in the law do not deprive the disabled of the income required to maintain their survival. HMG has failed on both of these conditions and need to be brought to justice.

 

P.S. Can we keep this one as the main thread whilst the mods (bless them) merge the two.

Edited by loan_ranger
added P.S. and ammendments, also insure changed to ensure - aspies will understand!

I'm not a qualified welfare rights adviser, but I'm planning on becoming one. I'm no substitute for more competent advice from trained CAB and welfare rights workers - [URL="http://www.consumeractiongroup.co.uk/forum/benefits-tax-credits-minimum/127741-benefits-advice.html"]see this post[/URL] by Joa, great advice and links! I've been running a Crisis Loan campaign and help since Jan 2007 . See my annotations c/o "theyworkforyou". I'm also currently interested by the recent DWP Medical Services reform and the effect this is having on valid claims, seriously - someone needs to be keeping a suicide count.

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My situation has not changed its like bernie259 stated we are all on the lower rate my interest is above 6% so i lose. The consumer action group should take some kind of mass protest before most of us are on the streets. Youve got to hand it to the french they know how to bloody a goverments nose long live napoleon get these aristocrats out.

 

SHIFTY,

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Many pressure groups (including specialised housing bodies) protested about the change after it was cited in the emergency budget but they were unsuccessful in stopping it from going through and the legislation was introduced, coming into force on 1st October.

 

The reason it was altered was because according to the government, 92% were receiving more help than they should have been getting. They don't appear to have realistically considered the remaining 8% and how they are going to fare.

 

Personally I think it should be a means test, not a flat rate in accordance with one banks' interest rates, so that there are little in the way of underpayments or overpayments and it is fair to all, rather than 92% here and 8% there.

 

8% doesn't seem a lot but when it's considered UK wide, it is. These folks claiming are people, not merely percentages. It's not a '%' symbol that will have their home repossessed and face having to be rehoused and have their dignity removed, it is a person. It really makes me furious.


My advice is based on my opinion, my experience and my education. I do not profess to be an expert in any given field. If requested, I will provide a link where possible to relevant legislation or guidance, so that advice provided can be confirmed and I do encourage others to follow those links for their own peace of mind. Sometimes my advice is not what people necesserily want to hear, but I will advise on facts as I know them - although it may not be what a person wants to hear it helps to know where you stand. Advice on the internet should never be a substitute for advice from your own legal professional with full knowledge of your individual case.

 

 

Please do not seek, offer or produce advice on a consumer issue via private message; it is against

forum rules to advise via private message, therefore pm's requesting private advice will not receive a response.

(exceptions for prior authorisation)

 

 

 

 

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I eventually received a letter from the DWP on Monday and find I have to pay £96 p.w. towards the interest on my mortgage. This is slightly more than my DLA, and I guess we can use that to pay the interest - but at the expense of my petrol, car insurance and other necessities, and I very much doubt we will be able to make ends meet. So little has been said about the reduction in MIPs that I wonder if it really is only affecting a few people. I have read that it is in fact possible to appeal but have no idea how, or what circumstances might affect a result. Like many people who were self employed or working for a partnership, my interest rate is well above the standard rate.

 

Ren

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I have read that it is in fact possible to appeal

 

I was under the impression that you can't appeal (although there's nothing to stop you from trying). It's not a policy change. It's legislation that the SIR matches with average bank of England rates.

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_180321

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what it says is that you can't appeal against the law. But on another forum it said some people had successfully appealed on grounds of 'special circumstances' - whatever they might be!

 

Ren

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The Benefits and Work forum

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Thanks to cerberusalert for the following which may help some people at least:-

 

Mortgage help

 

If you own a home and will struggle to pay your mortgage, Mr Osborne announced this week that he was continuing mortgage interest help for home owners.

Support for Mortgage Interest (SMI) covers eligible interest payments on mortgages, if you are receiving Jobseeker's Allowance. You'll have to wait 13 weeks before you can claim, and you can claim it for two years on interest on a mortgage of up to £200,000. The support covers interest of 3.63pc and a partner's income is taken into account. In effect, if the partner earns around £5,000 or more, the couple will not be eligible.

SMI is normally paid directly to your lender. Some home owners may have interest rates lower than that used to calculate SMI, so they receive more SMI than required. These payments can only be credited to their mortgage account.

If you fear repossession, there is a mortgage rescue scheme administered by local councils. Some households will get a shared equity loan, while others will get help from a "mortgage to rent" scheme, under which a local housing association buys their property and rents it back to them.

What's it worth? Up to £140 a week (interest on a £200,000 mortgage).

 

Full story. http://www.telegraph.co.uk/finance/personalfinance/consumertips/8079717/If-you-lose-your-job-will-the-states-help-be-enough.html?utm_source=tmg&utm_medium=TD_8079717&utm_campaign=finance2210pm


 

What's Best for You?

 

 

The Consumer Action Group is a free help site.

Should you be offered help that requires payment please report it to site team.

 

Alliance & Leicester Moneyclaim issued 20/1/07 £225.50 full settlement received 29 January 2007

Smile £1,075.50 + interest Email request for payment 24/5/06 received £1,000.50 14/7/06 + £20 30/7/06

Yorkshire Bank Moneyclaim issued 21/6/06 £4,489.39 full settlement received 26 January 2007

:p

 

Advice & opinions given by Caro are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

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Hi all

I am new to this forum and would appreciate any help at all on the following problem. we are on an interest only mortgage and i am on high rate disability. My husband claims carers allowance for me, and we have income support. We received a letter out of the blue from DWP on the 14th Oct 2010 saying nothing had changed in our claim, however on close further inspection we noticed our housing benefit had been reduced by £43 per week due to the interest rate cut from 6.64% to 3.32% leaving us to find the difference. we already have to pay a shortfalll in the mortgage of £193 per month and this extra has come as a terrible blow. we have recently had our house adapted for wheelchair use at great cost to the local council, and the house is personally adapted to our needs moving is simply not an option .

 

Can anyone tell us if there is any thing we can do to receive help or advice on making up this shortfall as we simply do not have the available funds and don't know what else to do. Many thanks for any advice anyone can give

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Many thanks to Bernie and Loan Ranger for your help and previous comments .. We can only hope that the Government take a closer look at this for all our sakes and that in joining forces we can push the powers that be to make sure they live up to their pre elected promise that the disabled and vulnerable would be safe in their hands. Bernie you made an excellent point re:why they cant pay what their lenders are charging them this as you say would be fair. Loan Ranger I find your comment on the ECHR particularly interesting this is surely where our strength lies particularly for all those like Bernie and myself finding themselves in property which has had disabled adaptations to meet their needs. there must be many others out there in this situation. It would cost local councils a fortune to rehouse us all in adequate houses and for those like myself who have adaptations done to their own property it would require finding another property ( if this is possible under the current climate) and then needing the council to fund yet another grant. How Mr Cameron is this saving money I ask. We need all public help bodies involved to push this forward for the sake of all disabled/ Low income groups . I for one am like a dog with a bone !!

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Hi all, I am a newbie to the forums - although I read them often - so I hope I have posted this correctly. (please let me know if I have not :-)

 

My mortgage help from the DWP went down too but I (and anyone else who is an old clamaint) did not recieve the full rate anyway. Our rate was half (£100,000) of the full rate (£200,000). I have emailed my MP about this and about the additional decrease in Oct. I have not heard from him yet but below is a copy (any identifying parts removed) of the email sent, nearly three weeks ago now. I hope it helps others who are wondering why their payment is now reduced and why it was never the full rate anyway.

 

I agree with a post above, it would be good if the consumer group could pick this up.....

 

Support for Mortgage Interest Charges:

 

I have two points on the subject of Equality in Support for Mortgage Interest Benefit, of which I wonder if you can clarify and help me understand matters.

 

Background:

 

I am registered disabled, assessed as a vulnerable adult, on high rate DLA and Incapacity Benefit with 10p a week Income Support. My disabilities eventually resulted in my early (age 29) ill-health retirement from work. In addition to the above, I receive a small, self-contributed, occupational pension. (Prior to my disabilities, I had never been unemployed, and was a very keen sportswoman (County level). I pay tax on my pension and incapacity benefit, about £120.00 a month.

 

My specific mortgage interest benefit was calculated at the capital rate of £100,000. Since then, in 2008, I believe, the capital rate was increased to £200,000 for new claimants only. Thus, despite my querying the unfairness of this several times with the DWP, my rate remained at the £100,000 capital. My interest-only mortgage is £150,000. My mortgage is a fixed rate, at 6.02%, for 10 years with an £11,000 early withdrawal fee.

 

My Two Points:

 

1.My understanding from the Strategy, Information and Pensions, Equality Impact Assessment (Support for Mortgage Interest Changes) (sorry, I needed to remove the link that was here for the assessment for posting on this forum), is that disabled persons (and pensioners, I believe,) would be discriminated against if they did not benefit from the increased capital. It seems the assessors already mistakenly believed that the disabled would receive the increased capital rate (point 7.34).

 

I would be grateful if you could clarify whether disabled individuals should be receiving this increased capital rate, as indicated in the Assessment at 7.34. And does the government know that the disabled claimants, prior to 2008/09, are not in fact receiving the increased capital rate?

 

2.Regardless of which capital rate a claimant is allocated, the Government on 1 October 2010, reduced the interest applied, from 6.08% to 3.63%. As above, my rate is fixed for 10 years at 6.02% with a £11,000 early withdrawal fee. Prior to October 1, my mortgage provider received £73.34 a week directly from the DWP. I paid the remainder. I am shattered to discover by letter last week from the DWP, that the amount now paid towards my mortgage is just £24.57 a week. I simply cannot find the personal increase of £48.77 a week (on top of the £480 I already pay).

 

Because my home does not have any significant equity (at most about £10,000), I have no choice now but to declare bankrupt or have my home repossessed, all in just a matter of months. This will obviously result in my seeking housing (suitable to my disabilities) from the local authorities.

 

The Government promised to protect the most vulnerable - and that the “better off” in our society must “shoulder” their share. In my case, how is the Government’s position possibly protecting the most vulnerable in our society, or reducing the deficit?

 

 

I thank you for your time and look forward to hearing from you

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What annoys me about this is the fact if you have a morgage you get less help towards your housing costs i mean they only pay the interest. Yet if you rent they pay most of it or all of it. And now because people like me who have morgages are going to be punished again by having the interest reduced by 3% how can we cope it seems they dont quite get this the tories and lib dems or they dont care i would go for the latter. For the record ive written to nick clegg well over amonth ago no response also contacted my mp who has written to george osbourne on my behalf still no response.

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What makes me sick about this, is the Bank of England base rate was dropped to half a per cent to help people during the recession, but instead of that the greedy b*nkers keep mortgage and loan rates high to increase their profits and bonuses.

 

Everyone posting is part of CAG and can organise a campaign as well as anyone else here, but experience tells us that people are very happy to complain, but when it comes to taking action are less eager to be involved.

 

In the absence of group actions, or while organising, then letter writing and emailing MPs, ministers etc can be helpful.

 

I'd be inclined to write to lenders too pointing out that you are on benefits and that they don't cover the full cost as the Government has lowered them to what they consider to be a reasonable level, so ask them to consider lowering the interest rate owing to your financial hardship and Government criteria for benefits.

 

Can't do any harm and you never know .......


 

What's Best for You?

 

 

The Consumer Action Group is a free help site.

Should you be offered help that requires payment please report it to site team.

 

Alliance & Leicester Moneyclaim issued 20/1/07 £225.50 full settlement received 29 January 2007

Smile £1,075.50 + interest Email request for payment 24/5/06 received £1,000.50 14/7/06 + £20 30/7/06

Yorkshire Bank Moneyclaim issued 21/6/06 £4,489.39 full settlement received 26 January 2007

:p

 

Advice & opinions given by Caro are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

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Another interesting development is that apparently Steve Webb, Minister of State (Pensions), Work and Pensions; Thornbury and Yate, Liberal Democrat, is in discussions with the Council of Mortgage Lenders to freeze or average out interest payments for claimants of the benefit. And there are apprently proposals put forward that claimants do not lose their home etc. I can't paste the link here (as it won't let me) but you can find the conversations and proposals on the site "they work for you", punch in "mortgage interest support", or similar. Conversations started around 28 Oct, I think. Despite my emailing my MP on the matter, he is not involved in any of the conversations about it in the Commons...

 

I agree about writing to the lenders. I have done so last week (when I could not afford to fund the increase due) and enclosed the email to my MP (in post above) and enclosed a print out of the House of Commons proposals / conversations re Council of Mortgage Lenders. I have asked my lender to comment on the proposals, and to reduce my rate or put me on a new rate without attracting the early withdrawal fee (£11,000.00). I have also appealed the DWP decision on the grounds of discrimination. I do not hold out much hope however. But Fingers Crossed!! I will post here any decisions or updates....

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