(SMI) Support for Mortgage Interest ending

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Comments

  • sleepy1
    sleepy1 Community member Posts: 297 Empowering
    Hi @Geoark thank you for your reply, below are a couple of links where I got my facts from.  Sorry, I should have said the Qatari consortium!

    http://www.cityam.com/261149/owns-london-capitals-biggest-landowners-qataris-own-much

    https://www.telegraph.co.uk/business/2018/02/26/lack-property-register-aid-criminals-sadiq-khan-warns/

    https://beta.companieshouse.gov.uk/search?q=QATARI+DIAR

    I could post much more but it would be pointless so lets agree to disagree on who owns what from wherever and focus on those in the UK that are in danger of owning nothing once the interest on SMI loans rack up. 
    DWP have only been paying part of the interest on peoples mortgages and to keep up payments to their mortgage companies claimants have already had to make up the shortfall out of what little they receive in benefits to avoid repossession.  If you are capable of working and finding a job fair enough, but for many disabled people that is not an option.

    From my understanding taking up the loan will mean that SMI will be paid as normal but you still have to make up the difference in interest. If your PIP/DLA/ESA stops altogether so will the loan and even though you are to ill to work you will have to find money to pay all your mortgage from thin air.........other wise a visit from the bailiffs.




  • Geoark
    Geoark Community member Posts: 1,463 Championing
    Hi @sleepy1

    I cannot access the CityAM site however found this source http://www.londonlovesbusiness.com/property/residential-property/the-great-estates-who-are-londons-10-largest-land-owners-by-size/12943.article

    They are certainly the largest private landowner in London, but this is not the same as owning most of London. Other than  that I am happy to agree to disagree with you.

    As I have said previously I do not support this move by the government because the little it saves is not worth the suffering it will bring. Especially alsongside the current corrupt way of assessing people to see what benefits they are entitled to, along with the sanctions regime currently in place.

    I have also noted that they have moved goal post, as the earlier information suggested the interest paid would be linked with the Gilt Interest rate, a lower and more stable interest rate than CPI, which tends to be lower than the RPI. Both the CPI and RPI do tend to fluctuate a lot.

    The very low Bank of England interest rate has also been in place for a lot longer than originally intended and once that starts rising again so will the interest on mortgages, another increase that is going to have an impact on vulnerable homeowners. With George Osborne patting himself on the back stating that we have finally resolved the defecit the reason for this historic suppression of the interest rate is over. It is only a matter of time and how quickly  the base rate will be allowed to rise. Either way this is going to have a huge impact on homeowners in general and vulnerable groups in particular.

    It will also have a big impact on the private rented sector, especially at the lower end with a lot of buy to rent owners suddenly finding their figures just don't add up. Council housing depleted because of RTB and being forced to sell off their more expensive homes to pay for sales in housing associations social housing stock, with very little going to the council. Add to this large building projects with very little or no social housing being included along with 'affordable housing' which is not affordable to most local people.

    In short we are heading towards a huge housing crisis, this move will just push the most vulnerable people further into trouble earlier and a lot quicker.

    As to what can be done? The best advice I have seen is for people to let their MPs know what is going on by telling their own individual story. The odd few emails, letters or visits to the MP surgery will probably not have a large impact. But if they are receiving a large amount of constituents telling their individual stories then they are more likely to listen. MPs make law and MPs are the ones who will change the law. But also other things like signing the petition, using the local radio chat shows, especially when an MP is taking calls to raise awareness. 

    What I don't think helps is muddying the waters with unrelated matters, or misinformation. It detracts from the message you are trying to get across. It also weakens your position to those who know the truth, or can easily look up the truth.

    It also means that while I am in full agreement that SMI as a loan is wrong I have been verbally abused and accused of things on this community, if you (in general rather than you individually) are alienating the support you have here how well do you think it will go in the wider society?

    Anyway I have decided to take a break from here for a few weeks as I have other things going on in my life. I wanted to reply to your post as I know that your posts have come from anger and frustration with what is happening but respect greatly that you have put this aside to try and engage meaningfully.

    I wish you well with whatever happens and hope the government gets the message before they cause too much additional damage to the most vulnerable people in our society.

  • sleepy1
    sleepy1 Community member Posts: 297 Empowering
    Hi Debbie

    Glad to hear from you again and hope you are well, I knew you were working behind the scenes and....... would be back. 
    It would be great to get more press coverage to highlight the flaws in this SMI loan debacle!
    Would love to put myself forward for a case study but don't think I would be a very good candidate atm and not enough energy to throw eggs at those that deserve them.

    Got another pip form to fill in and a date with the assessor already booked before I even send the form and any details back .......How lucky am I to get a match so quickly : )

    Keep up the good work X Rosie







  • myfriend1
    myfriend1 Community member Posts: 4 Listener
    Good afternoon, you may be aware of changes that the government is making to SMI mortgage interest  payments which affect mainly pensioners and the disabled which I find to be totally unfair and discriminates the all ready most vulnerable among us.  I have stated the below petition and would be grateful if it could be shown on you site and if you could help it get more exposure.
    Kind Regards Patricia
    Dear friends,

    I just started the petition "Stop changes to Support for Mortgage Interest (SMI)"  and wanted to ask if you could add your name too.

    This campaign means a lot to me and the more support we can get behind it, the better chance we have of succeeding. You can read more and sign the petition here:


    Thank you!

    Patricia

    P.S. Can you also take a moment to share the petition with others? It's really easy – all you need to do is forward this email or share this link on Facebook or Twitter: https://you.38degrees.org.uk/petitions/stop-changes-to-support-for-mortgage-interest-smi

    Read more at https://community.scope.org.uk/discussion/41497/smi-petition-to-stop-changes-to-mortgage-interest-payments#tq5pFheVopqf01XT.99
  • Quackkers3
    Quackkers3 Community member Posts: 12 Contributor
    Signed and shared on facebook. We need a fairer system for housing costs, where we all get same rates whether in rented or mortgaged accommodation as either way we are paying someone else to live in a house be it a landlord or bank. The only caveat should be you can't get paid more than the monthly rent or mortgage payment actually costs. We accept the same rates in age bands for other benefits with additional premiums for x y z. So why cannot  similar system be used for housing costs?? Scope is this something you could look into?? As the SMI loan only really works forcanyobe who will be out of work a short time. Those of us that will never work again due to health or disability , are pensioners/retired early, and still  have a mortgage to pay are going to owe an awful lot of money. I have 17 years left on my mortgage and I worked out Im going to owe the dwp at least £23,000 at end.
  • nanof6
    nanof6 Community member Posts: 199 Empowering
    IT wont be anything to do with the DWP they have already given the contract to capita, i rang the DWP a couple of weeks ago, thats what they told me.you will be paying interest on the interest, the first year looks not bad, have a look at the second year, and they dont mention the 3rd.wouldn't trust them one inch .
  • sleepy1
    sleepy1 Community member Posts: 297 Empowering
    Hi @myfriend1
    I have already signed the petition and did post the same link on here a while back.  Thanks for posting it again as there have been many new members that have only recently become aware of the SMI changes that will affect them in less than a month away that may not have seen it.

    Not sure if it will change anything in the end but the more people that sign the more clout it should have.  And as Geoark and others have said get in touch with your MP, even if to just make them aware of the new rules that have been sneaked in without very much thought of the consequences for the most vulnerable.




  • Quackkers3
    Quackkers3 Community member Posts: 12 Contributor
    I thought paying interest on the interest was against law under consumer credit act?
  • sleepy1
    sleepy1 Community member Posts: 297 Empowering
    @Quackkers3

    Yeah good point, but it seems the DWP are above the law!
  • Quackkers3
    Quackkers3 Community member Posts: 12 Contributor
    Mmmm I might just ask the Financial Ombudsman about it. Because as we have to sign a credit agreement the regulations of consumer credit act should apply.
  • sandraM
    sandraM Community member Posts: 31 Contributor
    Well its looking likely I'm going to be homeless soon. I have now sold my house and have not seen anything suitable within my budget. I feel so down and angry.
  • Geoark
    Geoark Community member Posts: 1,463 Championing
    Username_removed said:

    The cap has been lowered further. There are no plans to lower it again. 

    Bedroom Tax - no. Lowers the amount you receive to an amount the government believe to be correct based on the number of spare bedrooms you allegedly have.

    ESA - decision to remove payment for the WRAG was ultimately nothing to do with IDS.

    The amounts for ESA matched those for IB so no lowering there. The amounts for PIP also match those for DLA and AA. The only thing removed was lower rate care and, in practice, many people who qualified for that are now getting standard rate PIP daily living so are getting more. The intent of PIP was simply to remove 20% off the DLA budget. It has failed miserably thusfar.

    Sanctions - actually designed to incentivise work related activity etc. Government has just quietly backtracked on the deal to soften the impact of sanctions. 

    Universal Credit - actually designed to simplify 6 means-tested benefits into 1. Losing various premiums was a convenient byproduct of that intent. About to be judicially reviewed. 

    CPI link - definitely a saving but actual freezing of benefits for 4 years will be the bigger saving. 
    Bedroom tax - Alongside other reductions it still means that people are having to find additional money from the little they have to try and keep their tenancies. It also took away some of the flexibility from social landlords to house people as they need to match bedroom needs more tightly.

    ESA - IDS was secretary for DWP when he announced the coming change and this was the justification he gave. Granted he may not have been so when the changes went through. However it was still a loss of income for those put in the WRAG group, which they initially deemed they needed to live on.

    PIP - was designed to lower the budget and introduce regular reviews to ensure the person was still entitled to them. The system though is designed to deny it to as many people who are entitled to it as possible. End result is still a lot of people who by their own criteria should be getting it are not - therefor on a reduced income to what they should be getting.

    Universal Credit - I agree with what you say about its intention, and is a move I fully support in theory. That claimants would lose various premiums again was a choice made and reduce the income from people did or would have been entitled to.

    CPI - agree with you totally, and as I said these were the measures I could remember at the time I posted and I was sure I had missed some. 

    Bottom line, it means people are losing the money that they were previously entitlted to, or even still entitled to but are not. In a lot of these disabled and long term sick are having to cope with less and less money when as a society we accept that the cost of living is higher. It does not even touch on the loss of public services.
  • Geoark
    Geoark Community member Posts: 1,463 Championing
    @sandraM sorry to hear how things are turning out for you. Have you contacted the support line? I know they cannot reduce the prices of homes in your area, but may have some ideas which could help or signpost somewhere else that might help. 

    I know Debbie_Scope has a lot of experience in housing.

    I hope something is sorted soon for you.
  • sleepy1
    sleepy1 Community member Posts: 297 Empowering
    Hi @sandraM, good to hear you have a buyer but it is sad that you are now finding it difficult to buy a suitable property with the money you will have left. Having spent so much already adapting your current property it must be very upsetting.

    If you fit the criteria it may be worth looking to see if there is anything available in your area from the Almshouse Association (see link below).  I have a couple of friends that are residents in the ones where I live, the rents are very low with the bonus of utilities and other things being inclusive.  As most of these properties are aimed at providing safe and secure housing for retired and disabled people I think many of them are already adapted.  From what I can see the criteria varies a lot depending on the charity.

    https://www.almshouses.org/information-vacancies/information/
  • heavenhelp
    heavenhelp Community member Posts: 24 Listener
    I think It is called Maladministarion, injustice inequality etc. We may not be able to change what the parliament have done but we can make a formal complaint about how they communicated (or rather lack of communication) with us or rather how little time they have given us, mixed messages on their website. Consequently how it has affected you ie if you have to extend your mortgage sell up and move causing undue stress anxiety making your health poorer. We should then take it to Parliamentary Ombudsman

    I also still feel that people should at the same time reqest Mandatory Reconsideration on the grounds of reducing your benefit causing you hardship, injustice, inequality. Basically treating us unfairly. These are examples you can add your own.
  • heavenhelp
    heavenhelp Community member Posts: 24 Listener
    So why have they sent letter dated Feb 2018 saying "A Change in the ESA Rate Payable" "That is because of : a change to your housing costs. We have used the tax years ending *5 Appril .... and 5 april1994*  to   assess your claim. {look at the  date 1994 why this year)  

    Page 2 says WHAT TO DO IF YOU THINK THIS DECISION IS WRONG. If you think the decision is wrong pls get in touch with us by telephone or in writing. etc etc
    Next para states "You can appeal against this decision. but you cannot appeal until we have looked at the decision again. We call this a Mandatory Recosideration."

    You or someone who has the authority to act for you can:
    * ask us for an explanation of the decision, or
    *ask for  a wrtten statement of reasons for the decision, if we have not already sent one
    *ask to look at the decosion again, to see if it can be changed. There maybe some facts you think we have overlooked, or you may have further information that affects the decision.
    When we have looked at the decsion again, we will send you a letter explaining what we have done, "We call this a MANDATORY RECONSIDERATION NOTICE."                   
  • heavenhelp
    heavenhelp Community member Posts: 24 Listener
    so again itis maladminstration so how come scope are not helping people who have contacted you to give advice about what wording to use for Maladministration Why is scope and other charities for disabled and vurnerable people  jointly  not campaigning on our behalf? It apppears you have been aware of this for quite sometime why have none of the charties acted so far but instead are adamant for people to accept the Injustice. Scope did not even start a petition on our behalf URANIUM234UK started it.


  • Barbiesnemesis
    Barbiesnemesis Community member Posts: 84 Empowering
    Something I was wondering for people old enough to apply for equity release, is that it might be an option better than having to sell your house. People could use the money to off their mortgage and it will mean they won't have the equity release money in their bank affecting benefit payments?

  • Quackkers3
    Quackkers3 Community member Posts: 12 Contributor
    Equity release may be an option for some. But you have to be very careful with equity release mortgages  there are  unscrupulous companies out . always get independent financial advice and do your research before taking out an  release mortgage.

    Now for anyone whose sole income is disabilty benefits, like me, because  is only me , trying to remortgage to  cheaper rate or find a lender that will  take benefit income, and  both PIP and ESA together, has been nigh on impossible. I have spent the last 2.5 years trying to find one. I even raised the issue  times with Martin Lewis as  am locked into a  rate  to my inability to remortgage.

    Anyway I found  mortgage broker on Facebook called The Better Mortgage Company. And  found me a  who will take PIP and ESA  sole income, and in principle would remortgage me onto   less than  of  one I am on as I passed their basic affordability checks. Unfortunately I failed the  score. But I can re-apply in   months if I improve my  score.

    I will post their links shortly for anyone who wants it. If you contact them all I  is  tell them Deborah Hambley recommended them. I wont  any payments or anything, but it might help  re-application later.

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