morgage interest dwp payments

[medsec]

I'm reading this with interest (no pun intended!) because our mortgage payment has been halved too. Which leaves the remaining half to be paid out of ESA, barely leaving any money for other bills! If this is going on round the country it will just force people to work without declaring it, i.e. force people into crime and risk prison I'm just so despondent about the whole thing. Just when I was getting excited that Atos had issued me with an apology for messing up my medical!

Edited November 7, 2010 by medsec

[sj01]

Hi, this has happened to me too. I have to now find an extra £165 per month which is going to be impossible.

The DWP say that if I dont get diability living allwance when I next claim then I wont get any help with my mortgage at all, is this right.

They have just asked for proof of my sons earnings too. Its not his job to pay my mortgage and he already contributes as much as he is able. I am seriously worried.

Edited November 7, 2010 by sj01
spelling

[shifty50dog]

We can all meet outside 10 downing street and ask cameron and clegg for a bed for the night

[caro]

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....

 

That's useful to know jm. I think this is probably the link. http://www.theyworkforyou.com/debates/?id=2010-10-18a.619.6&s=speaker:10075

 

Could be worth writing to the Council of Mortgage Lenders too.

 

Let us know what your lender has to say.

[jm31]

Thank you for pasting the link, Caro. Good idea to write to Council of Mortgage Lenders (will do so today). It has been over three weeks since I emailed my MP, so I think I will email him again today too!

I will post here as soon as I hear from anyone...

[medsec]

Hi, this has happened to me too. I have to now find an extra £165 per month which is going to be impossible.

The DWP say that if I dont get diability living allwance when I next claim then I wont get any help with my mortgage at all, is this right.

They have just asked for proof of my sons earnings too. Its not his job to pay my mortgage and he already contributes as much as he is able. I am seriously worried.

 

Yeah, I had to declare my daughter's earnings: she's only 20, gets just 5 quid an hour because minimum wage is lower when you are under 21 or something... and she earns a grand total of 500 quid a month in retail where she is doing a manager's role, keyholder, cashing up etc. Such a responsible position yet they are paying a fiver an hour. It's diabolical. She doesn't even get time and a half for bank holidays or Sundays or anything. This is the kind of job that is out there, Messrs Cameron and Clegg. How can anyone live on that?

[shifty50dog]

if anyone gets there interest rate reduced by there lender would they post it on this thread please.

[shifty50dog]

Still waiting for dwp to reduce my interest payments when does it kick in the 3% reduction

[jm31]

Hi all,

 

I have received a very helpful / interesting letter from my MP - he has written to Ian Duncan Smith directly (sent me a copy of the letter) asking him to investigate my case (as per my posting 5.11.10) and to provide him with a full report... fingers crossed!

 

DWP say they are looking at my appeal but it may take three months! (oh, but in the meantime, they have now said that they have overpaid me (£20.00 odd), so I received just a couple of £s towards my mortgage in Nov - after they took off the £20 overpayment! And they have reduced by another £3.00 a week from Dec - so my benefit has now reduced from £73.34 a week to £21.89....eeek.

 

My lender has not as yet responded to my letters...

 

Update you as I hear more ....

[caro]

Thanks for the update jm. I really think the more people do this the more likely the issue is to be addressed.

 

Out of curiosity which party does your MP belong to?

[duxbury]

Hi jm

 

Many thanks for your help I also intend to write to My MP I agree we all need to try and do this en mass! Its the only way to try and get some action on this appalling thoughtless decision.

[jm31]

Caro & Duxbury, thanks.

Caro: My MP is Libdem...

Duxbury: good luck with your MP contact

Yes, I agree that the more people who "complain" the more likely it will be addressed. Mortgage Benefit claimants is a very small group/ "voice" of people though. Even if we all complain, government statistics says it just 225,000 who receive the benefit. 52% of these are pensioners and 38% being disabled.

I would imagine, within these groups there will no doubt be some very vulnerable individuals / families who may not be in a position or able to "lobby". I can only hope that because my case has gone direct to IDS to investigate and report on, a need for the most vulnerable to lobby can be avoided...fingers crossed, eh!?

[shifty50dog]

Hi all still waiting for george osbourne to respond to my mps letter on my behalf about the 3% morgage interest cut geoffrey robinson

[mkb]

Interesting that LibCONS are back-tracking on housing benefit cap

 

http://www.guardian.co.uk/society/2010/nov/28/housing-benefit-cap-postponed-2012

 

Now if only the same could be done for those of us already affected by the reduction in housing costs via SMI but I dont suppose they're gonna backtrack on that are they

[shifty50dog]

Does this mean us with morgages are going to be shafted for the interest now and not 2012

[duxbury]

I could not agree more with your comment jm31 It is because I find myself in the disabled percentage that i feel so angry. I realise as in a lot of decisions made in Government over the years and across various parties it is always easier to take from the vulnerable groups in society pensioners, disabled, carers, low income because for the very reason they realise these groups are not usually in a position to retaliate. Understandably it is not all of us within these groups who are fortunate to be able to do some lobbying etc but I like you feel that whoever of us who are able to do something all be it writing to our MP, as you have then we can do it for those that can't. Thanks for your good wishes and I wish you all the very best of luck my fingers and toes are indeed tightly crossed !! And i hope i get a good response from my MP also!

[jm31]

I could not agree more with your comment jm31 It is because I find myself in the disabled percentage that i feel so angry. I realise as in a lot of decisions made in Government over the years and across various parties it is always easier to take from the vulnerable groups in society pensioners, disabled, carers, low income because for the very reason they realise these groups are not usually in a position to retaliate. Understandably it is not all of us within these groups who are fortunate to be able to do some lobbying etc but I like you feel that whoever of us who are able to do something all be it writing to our MP, as you have then we can do it for those that can't. Thanks for your good wishes and I wish you all the very best of luck my fingers and toes are indeed tightly crossed !! And i hope i get a good response from my MP also!

 

Thank you - and give my appreciation to your fingers and toes too ;-)!

 

Let me know how you get on...

[andydd]

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....

 

Interesting, I started a thread about this a while back and was contacted by the BBC and ended up being interviewed on BBC Breakfast about it (by Samantha washington), alas it does appear that this issue hasn't really attracted much media attention though, certainly not as much as the cap on housing benefit although the repurcussions of it could be just as serious, some people find that they are suddenly hundreds of pounds short on their mortgage payments (and this realtes to the Interest only, not the actual capital repayments).

 

There is a Facebook page, dealing with this issue..

 

http://www.facebook.com/permalink.php?story_fbid=123336794396114&id=686568592#!/pages/Campaign-to-make-the-Support-for-Mortgage-Interest-SMI-scheme-fairer/154313834598598

 

Andy

[BanditQueen]

Mortgage Interest Payments are the root of all evil, but they are a necessary evil, and one that we could not survive without.

 

My main beef with my mortgage payments is that they took so long to come through is that they are not being paid at the rate that they should have been at the start and now all of a sudden, the Lender, or rather the sub prime bog beast that calls itself a lender: that is Capstone Mortgage Services have started to levy a £5.00 Alternative Payment Charge on the interest SMI payments being made by the DWP.

 

The DWP pays part of the interest and I make a payment as well through the bank and the Capstone say that from April 2011 they introduced this new charge but only applied it last two months. Only found out when the statement of last 12 months came through. £5.00 was taken from the bank payment that goes directly out of my account and another alternative payment fee was made on the DWP payment, which goes to them every month and has done since 2010.

 

We have made payments to them using this method since we were not able to make direct debits since 2007 and they agreed to us making it this way and it is also made clear that it is in the agreement that this is a standard method of payment, so why are they now adding fees for us making a payment that most people use. It is just another way to make money. And as the monthly payment is split, because of the DWP payment they get two Alternative Payment Fees a month. It may be only £5.00 but what is to stop them from putting it up to £10.00 or £15 or more and if we wanted to make another payment in that month, to pay the arrears, say; we would have another £5.00 fee on top of that.

 

What most annoys me is that they are using the money for the interest from the DWP to deduct the fees from and only part of the DWP interest payment is going to cover what it is intended for. We are being penalised for being on benefits in other words and having part of our benefit stolen by the mortgage company!

 

I want to know is this fraud? I think it should be classed as fraud if the lender deducts or charges a fee for your mortgage being paid towards by the DWP! I also think that if the lender takes any of that money for any other purpose than mortgage interest then it should be fraud. Should I inform the DWP and can I force the company to pay this money back to me and to the DWP?

 

Any help with this one would be of interest.

 

Thanks

[andydd]

Hi..Well as I posted above, I was interviewed by the beeb about this some time back, you could see if they are interested.

 

Also surely charging this extra fee would need a change in your T & C's,..were you ever notified about this ?

[BanditQueen]

Hi..Well as I posted above, I was interviewed by the beeb about this some time back, you could see if they are interested.

 

Also surely charging this extra fee would need a change in your T & C's,..were you ever notified about this ?

 

Hi and Thanks,

 

I assume you mean the BBC and no I have received no change of terms and conditions and I am sure this comes under UCTA Section 6 and Section 5 that still applies to mortgage fees. I heard nothing from this mob from the day they last wrote to me saying they cannot find some of my lost payments in December 2010 till they took me to court, notifying me on 8th August of their intention to act on the warrant from 2007, even though the arrears was still in contention and they had accepted our situation and the DWP payments at that time as well. The £5.00 was only put on when we began to pay in compliance with a current intermediate court order. It was not applied before and I do not know how else we can pay as they only accept direct debit and on line payments for the total amount. We are paying a court capped amount and the DWP, I am most certain cannot pay any other way. I am in agreement with my legal counsellor that I am being treated less fairly due to my disability as it is this that impacts on our ability to keep up with the payments in the first place, and these fees prove it. It has to be against the law for these people to make charges based on the way that you pay: it is outrageous and to put them on the portion of the payment made by the DWP is mere stupidity. If they made this change in April why did they not apply it to the DWP payment at that time?

 

I will tell you why, that payment has been made automatically for a couple of years and they have ignored it; I make a change to the payments, by making new payment arrangements, as we had withheld payments due them not finding £8000 lost in payments which the court has now ordered them to do so, and they are also trying now to get out of going back to court as we have provided proof that they lost the payments, but we want a court ruling in our favour, so the hearing is going ahead. I will be asking the court to rule on the fees as well at that time.

 

Thanks

 

Lyn-Marie