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My Mortage arrears with Woolwich because of Govenment Support for Mortgage Interest (SMI)


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Received letter from The Woolwich today informing me that I'm in arrears with my mortgage for the sum of £551.

 

We have been getting SMI (Support for Mortgage Interest) from the Government since late 2009

 

It was worked out that they would pay £202 pm to help with interest payments leaving me £260 pm to make up the £462pm mortgage payment (Im on a fix rate until 2013)

 

I checked with my bank and the £260pm I pay, has been sent to The Woolwich every month with no missing payments.

 

I called The Woolwich up to find out what has happened and they confirm my part payments have been received but then informed me the SMI which was £202 had actually been reduced to only £120 for the last 9 months. The Woolwich then informed me the Government have reduced the interest rate they pay in Oct 2010.

 

Im not very happy as I have never been informed by the Government Depatment dealing with my SMI regarding them reducing the interest rate, giving me time to adjust my payments to make up the difference. I have never been in arrears with my mortgage in all the 10 years I have had it.

 

Im now left with a overdue payment which I cant really afford due to the Governments inaduate department not informing me of the changes.

 

Any Ideas how I can deal with this as its clearly not my fault.

 

Many thanks

 

Mark

Edited by DebtUpToMyEyeBalls
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  • 3 weeks later...

Hi Dutmeb,

 

Sorry this went unanswered - the Woolwich forum is rarely posted in and can get overlooked.

 

Thread moved into Mortgages forum where I hope you'll get some answers.

 

:-)

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