(SMI) Support for Mortgage Interest ending

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Comments

  • heavenhelp
    heavenhelp Community member Posts: 24 Listener
    When you people receive a letter from DWP about how much benefit you will get and no housing cost ask for a Mandatory Reconsideration and if they still dont give you your housing cost got to Tribunal
  • Geoark
    Geoark Community member Posts: 1,463 Championing
    @heavenhelp

    SMI can be paid as a benefit or as a loan. Which you can get depends on when you get, or are treated as getting, your qualifying benefit.

    If you get SMI as a benefit, it will stop being paid from 5 April 2018. You’ll get a letter before then about the SMI loan and other options available to you.

    Source: https://www.gov.uk/support-for-mortgage-interest/what-youll-get

    On government websites like this it is worth checking all the pages and not just the section you are interested in.

  • URANIUM234UK
    URANIUM234UK Community member Posts: 10 Listener
    print)
    To My Logic, after reading the above gov web site , it means that:
    IF you already receive SMI then you will keep on getting SMI; however it will first Stop and then
    restart (either by request or automatically, it does not say) and get IT PAID AS A BENEFIT.
    IF you have already waited OVER 9 months (39 weeks) then you get IT PAID AS BENEFIT from
    April 2018 !
    IF you have not waited this amount of time or are not already in receipt of SMI then you will be given
    it AS A LOAN!
    IF you get a gap (go to work or holiday or sign off) for upto 12 weeks you can restart it without
    anywaiting period; otherwise if the gap is over 12 weeks you have to wait 39 weeks again !
    You can stop or restart it at any time (if you quality etc) bearing the above in mind.
    N.B. These are only my rough notes and my best guess-estimate of this rip off, yet again designer to
    hurt the MOST POOR , MOST VUNERABLE PEOPLE IN SOCIETY; yet the BANKERS STILL
    DRINK 'OUR' CHAMPAGYNE!
    N.B. IF you are rich you will CREATE A LIMITED COMPANY AND SET ASIDE THIS MORTGAGE
    INTEREST PAYMENT and GET IT BACK ! p.s. it is maybe not worth while to do this if you
    mortgage interest is low , say under £100/month ; as setting up and costs are £1,000 (including
    accounts etc).... against, this is only my rough guide ! please search internet.

    Best of Luck to Everybody ! God Bless a True England with True Caring Government to All its
    Peoples !
    Note: also I have heard , after receiving my letters, that these are WARM UP LETTERS !
    What is that suppose to mean, all they say on phone is VAGUE and NO DEFINITE ANSWERS -
    again they read from scripts !
    MAYBE, they are Playing for Time as they GOT THIS WRONG and it should AND WILL still be paid
    as a DESERVED BENEFIT TO ALL PEOPLE , PAST/PRESENT/FUTURE !
    Thankyou for reading (sleepy now, snooze :-))

  • URANIUM234UK
    URANIUM234UK Community member Posts: 10 Listener
    https://www.citizensadvice.org.uk/debt-and-money/mortgage-problems/how-to-sort-out-your-mortgage-problems/youve-had-a-letter-about-your-support-for-mortgage-interest-benefit/

    READ THE ABOVE FULL SITE .... information if your home is owned by others but who do not live with you in that home ...

    Quote:

    If you live with your partner

    Your partner will need to agree to the loan as well.

    It’s usually a good idea for them to agree to the loan, because it means you’re more likely to afford the mortgage interest payments.

    You don’t need your partner to agree to the loan if they live somewhere else.

    If you own the home with someone else like a friend or family member, they don’t need to agree to the loan.

    End Quote

  • URANIUM234UK
    URANIUM234UK Community member Posts: 10 Listener
    :NEW  OR EXISTING  ... OR ALL ???

    Please read : WHATDOTHEYKNOW . COM     ... WEBSITE INFORMATION

    https://www.whatdotheyknow.com/request/support_for_mortgage_interest_sm

    https://www.whatdotheyknow.com/request/323702/response/790160/attach/html/3/FoI 1066 Mr Stevenson SMI loans reply 2016 03 31.doc.html 

    https://publications.parliament.uk/pa/cm201516/cmpublic/welfarereform/151015/am/151015s01.htm

    https://publications.parliament.uk/pa/bills/cbill/2015-2016/0051/en/16051en.pdf
    .....
    It seems, that Eventhough they write whatever they want, and it is illogical to me , they still try to push it as a loan to all e only available as a not and not a benefit (sadly/ Rip of Britiain). !
    ...Sleepy now.  Best of Luck to Everybody , Again.

  • CockneyRebel
    CockneyRebel Community member Posts: 5,195 Championing
    Usual DWP gobbledegook
    If this affects you then get inntouch with your local MP. It needs to be clarified

    CR
  • URANIUM234UK
    URANIUM234UK Community member Posts: 10 Listener
    PLEASE EVERYBODY DO THIS - SIGN THE PETITION TO STOP THIS

    https://you.38degrees.org.uk/petitions/stop-changes-to-support-for-mortgage-interest-smi


    To: Government

    Stop changes to Support for Mortgage Interest (SMI)

    We need to come together to stop the unfair and unjust changes being made to support for mortgage Interest payments from April 2018. Why are they prepared to continue to pay housing benefits to tenants which enable landlords to pay their mortgages but yet discriminate against homeowners who have worked hard to purchase their home and paid into the tax systems of this country prior to becoming too unwell to work. Now they are causing extreme stress to already vulnerable individuals and in addition forcing them to pay two lots of interest. This is an outrage. And to add insult to injury a large number of these individuals affected by this change are pensioners.

  • sleepy1
    sleepy1 Community member Posts: 297 Empowering
    Hi Alex
    Thanks for posting your answers to FAQs which may help some people.  I have just browsed through the link and can think of a few what ifs:

    What if you want to sell up and move but your ex/joint owner refuses to comply to a sale but also refuses to pay anything towards the mortgage payments?

    What if you end up in a long stay hospital or care home situation?

    Do we have the right to squat in our own home or will we just be dragged out and chucked on the street............Bit extreme I know but a valid question all the same


  • sleepy1
    sleepy1 Community member Posts: 297 Empowering
    Cheers Uranium
    I have signed the petition for what its worth!  Sweet dreams X
  • Geoark
    Geoark Community member Posts: 1,463 Championing
    @URANIUM234UK

    'IF you have already waited OVER 9 months (39 weeks) then you get IT PAID AS BENEFIT from April 2018 !'

    Wrong, SMI as a benefit ends April 2018.

    Confusing really as the other links you provide also state that this will be the case.
  • erm
    erm Community member Posts: 70 Contributor
    Luckily the high fixed interest rate we were on ended so mortgage payments came down. I'd rather ask the family than allow .Gov to get control of the home we did without to buy, while many who rent get their rent paid so can go out and buy new clothes etc. We're being targeted in our own country, migrants come get their rent paid then will get the care they need while as home owners .Gov sent out letters stating if we need care we could be forced to sell the house to pay for it or our family would be charged for our care. WHAT a country we have ehh. when our own can be forced out of home to allow migrants to get free housing... On benefits letters it states an amount of pension credit your entitled to £x pension credit, then they lessen that by the amount they paid towards mortgage giving you the remainder in the bank each week,, I am wondering if the total amount they say your entitled to will be paid to your bank or are they going to reduce the amount of pension credit your entitled to? 
  • redfang55
    redfang55 Community member Posts: 4 Listener
    Hi erm, this was my same question with income support 
    because the same happens there as well but from
    what i can tell they don't give you it back, it's like
    it was an added extra so doesn't count and won't
    come back to you in any other way.
    they are literally screwing us all ways possible! the 
    only options we have are
    1 take the loan
    2 don't take the loan and find the extra ourselves!
    3 sell our homes, spend the money then claim rent!
    thus screwing the government over afterwards! which
    they wholey deserve!

  • erm
    erm Community member Posts: 70 Contributor
    redfang55 Hi, I thought  they work out the minimum amount you need to live on, if its not enough they add pension credit to top up pension etc to the minimum monetary total which you need to live/exist on, Then they deduct any moneys they give you like pension or help with mortgage interest which gives the total of pension credit amount left to be paid into your bank. for Example you need £40 to make your money upto the minimum amount to live on they pay £15 towards the mortgage take away any income like your pension etc then it gives the amount of PC which you get paid direct... so Unless they are lowering the minimum amount you need to live on, AND NOT just stopping the SMI, then you should get the entire amount of PC they add to make up your minimum amount of benefits. surely they cannot lower the amount people need to exist on! 
  • sandraM
    sandraM Community member Posts: 31 Contributor
    redfang55 said:
    Hi erm, this was my same question with income support 
    because the same happens there as well but from
    what i can tell they don't give you it back, it's like
    it was an added extra so doesn't count and won't
    come back to you in any other way.
    they are literally screwing us all ways possible! the 
    only options we have are
    1 take the loan
    2 don't take the loan and find the extra ourselves!
    3 sell our homes, spend the money then claim rent!
    thus screwing the government over afterwards! which
    they wholey deserve!

    You got it in one. These are our only choices.
  • redfang55
    redfang55 Community member Posts: 4 Listener
     well i've just done a benefit calculation but calculated
    as a renter not an owner and after comparing the results
    with what our income support letter says i can confirm
    the smi is an extra amount that is added onto our claims!
    the amount the law says we need to live on ( for us as a 
    couple ) is £114.85, there is then a premium for being
    carers of £34.95 which makes £149.80 they then deduct 
    £62.70 because of carers allowence which leaves £87.10
    per week, this is the amount the law says we need to live
    on, the mortgage smi is an extra amount that is added on
    and so it will be taken away and there is nothing to 
    replace it other than the loan or finding the extra
    ourselves.

    So i'm afraid there is nothing any of us can do other
    than write to mps, write to the prime minister, write
    to papers, media etc etc but it will all fall on deaf ears
    because at the end of the day this is all happening because
    the torries believe that anyone on benefits does not 
    deserve to have a property of their own! even if they
    save the country hundreds of thousands if not millions
    each year!

  • jono71
    jono71 Community member Posts: 1 Listener
    Single dad stressed and depressed with a mortgage on a 1 bedroom flat. Daughter has the bedroom I have the living room. Health not great. Totally upset about the change with mortgage interest help. No idea what I’m going to do. Too upset to talk any more about it at the moment. 
  • Geoark
    Geoark Community member Posts: 1,463 Championing
    @redfang55

    3 sell our homes, spend the money then claim rent!
    thus screwing the government over afterwards! which they wholey deserve!

    Just remember to keep the receipts and be prepared to justify the spending. If they believe you have spent the money in order to get benefits you may find yourself without any.
  • Geoark
    Geoark Community member Posts: 1,463 Championing
    @jono71 welcome to the community.

    We are here when you are ready to talk.
  • Geoark
    Geoark Community member Posts: 1,463 Championing
    @erm

    'so Unless they are lowering the minimum amount you need to live on, AND NOT just stopping the SMI, then you should get the entire amount of PC they add to make up your minimum amount of benefits. surely they cannot lower the amount people need to exist on! '

    Benefit cap - deliberately lowers the amount paid to below what has been calculated that they need. the cap has been/will be lowered further.

    Bedroom tax - lowers the amount people get compared to what the government calculates what you need.

    ESA WRAG - lowered to the same amount as JSA because IDS did not like they were less likely to find work, but lowered the amount of money the government decided they needed.

    ESA and PIP - The main point of these two changes was to lower the amount people were getting. Mandatory Reconsiderations were introduced not to make the system fairer to users but to discourage people going to appeal to get the money their own system says they are entitled to.

    Befefit Sanctions - designed specifically to lower the amount of money claiments get.

    Universal Credit - again designed to lower the amount you get. It is based on household income rather than individual or couple. So those with working age children who work will get less.

    Linking benefits to Consumer Price Index rather than Retail Price Index resulted in lower benefits saving the government billions.

    Working Tax Credit - the qualifier for this was moved from 16 hours to 24 hours which lowered the income for some of the poorest families.

    I am sure there are some I have missed.

    Short answer: yes they can and have done.
  • erm
    erm Community member Posts: 70 Contributor
    Hi All,  this is not the country many fought and died for and it is getting worse. hence we have bedroom tax to out people from rented homes and now this to try to out people from bought homes. I guess many MPs and many who come here from abroad buy up the property cheap to rent out to even more newcomers 

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