Support for Mortgage interest

[Theactionman]

Can anyone help with an housing benefit claim?

 

In 2000, an house was purchase and in 2006 there was a re-mortgage.

In 2009 unfortunately there was a claim for housing benefit due to unemployment.

I must add that there has been extensive work carried out at the said property that has increase the property value significantly.

Also the claimant is 38 yrs old and it is the first time ever to have made any benefits claims.

 

After numerous attempts since last October for an explanation as to why there is such a short full of payment towards the interest only via telephone and by letter, they (benefit office) have just sent a reply of an explanation. Their explanation is vague so runs short of a full understanding as to why this is.

The benefits office is using the original mortgage as the bases of their calculations.

 

The original mortgage was £145,000

The re-mortgage is now (from 2006) £258,000

 

Any advice regarding this will be hugely appreciated

[Nystagmite]

There is an upper limit of claim for mortgage interest on up to £200,000 of your mortgage (this was previously £100,000)

[leemack]

Also it only covers the initial mortgage, unless the remortgage was for essential works - and you would need to prove the money paid for the essential works - with receipts etc. They don't care if the property value was increased, only if the work was essential - so if you needed a new roof, or a boiler, or a wall rebuilt or insulation, then that might be considered essential, but things like extensions, loft conversions, internal non essential renovations or decorating would not be covered.

[Theactionman]

When the house was purchased the claimant and partner had only 2 children. Since then there has been an additional 3 more children which was the plan, hence why the renovations was done. Also the 2 older children have now come of age and require their own rooms.

The work undertaken included complete new electrics, heating system, new kitchen and roofing as well has additional rooms. All work that took place was done at a high standard and is well insulated which is environmentally friendly to which society has encourage us all to do.

None of us all can foresee what the future brings as far as the economy gos, so it came as a complete shock when they (the claimant) found their-self unemployed for the first time in their life.

It has also been mentioned just recently that they could have a claim regarding PPI but again they are not getting any co-operation from the mortgage broker. They are quite certain that they were charged for this.

As you can imagine all this has taken it's toll on their health.

[leemack]

The only thing that can be done is appeal the mortgage interest decision, send in a long letter giving explanations of why the works were essential and providing receipts for all the work. The trick is convincing them that it was essential work, which is really difficult.

[Theactionman]

Hello again. Can u explain why it will be difficult when it's so obvious?

[leemack]

Hello again. Can u explain why it will be difficult when it's so obvious?

 

What a sensible person considers essential and what the DWP consider essential can be two different things. Get a benefit caseworker if possible and get them to argue the points for you. Some of the work may be acceptable, but I've seen new kitchens and extra bedrooms rejected before.

[Theactionman]

What I can't get my head around is for example: If someone purchased their property say 20 yrs ago and in this time, rather move on and upgrade they decide to do extensive work, maybe several times throughout this period and as history tell us property go's up in the long run, then all of a sudden because of bad economic & politics they found themselves unemployed, they could loose their home because by this time the original mortgage may only be a fraction of what the re-mortgage is now. Also what makes this worse is that people could loose their homes with say just 5yrs left to go on mortgage contract because of a massive short full in payments, heart breaking especially after paying good tax's all their working life!

What's good for the goose is good for the gander.....When politician's put in a claim they just go to the gravy train and dip in.

May have to plant a few more seeds as I did in 2007. Never did close the book over this affair

[Theactionman]

Thank you for all this and your time.

[jadeybags]

Good on you OP. You do make a lot of sense there.

[cbbc]

Hi, I had to do essential work on my old house, I borrowed about £20,000.

I moved into my present house while still working.

When I lost my job the DWP told me that although they agreed the work on my old house was essential to my family, as the house improvements were for another house then they would not help me with the payments.

It is a crazy system.

I am now struggling but stuck here as I cannot get a mortgage even on a cheaper house while unemployed.

The mortgage company told me to go to the citizens advice if I was having trouble and they would help me with a budget.

That is not much help, unless the citizens advice can help me print money then there is nothing that can be done.

You will soon realise like I have that there is no real help out there for house holders no matter what people tell you.

[Theactionman]

Hi leemack. Just looking at the reply sent from you at 12:21am on18/05/11. You say here "They don't care if the property value was increased, only if the work was essential". What was meant by value was that given time all property will increase in value. If given choice some will move to upgrade and some will stay and expand on plot if this is an option.

If there is more children added to the family unit then surely this should be classed as essential as it is for MP's to claim 2nd home's to be nearer Parliament!!!

[Theactionman]

The next part I understand that there was PPI tide to this mortgage as I have already stated. There has been attempts made to the named mortgage company to see if there are/was PPI to this contract but it seems to have fallen on death ears. Can anyone give any guidance as to what to do next?