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Mortgage and SMI issues

julieseferidisjulieseferidis Member Posts: 1 Listener
edited August 2018 in Finances and extra costs
My mortgage has ended with  TMB and they have switched to RBS but my mortgage ended in2013 We still have 55,000 to pay.
I am in receipt of SMI and they are still payingTMB
Who do I get In touch with RBS to lend us money but the interest to be paid by SMI.
Failing that have we got to move.
I am on ESA, DLA and my husband is getting career allowance.
kind regards,
Julie Seferidis.


  • Chloe_ScopeChloe_Scope Scope Posts: 10,662 Disability Gamechanger
    Welcome to the community @julieseferidis! I hope someone in the community is able to answer this :)
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  • BenefitsTrainingCoBenefitsTrainingCo Member Posts: 2,692 Pioneering


    You need to get in touch with the lender (RBS) to sort out who is your mortgage lender now. I'm a bit confused because you say your mortgage ended but you still have £55,000 to pay - is it a fixed rate offer or some particular terms that have ended?

    As regards your SMI, the system is now a loan from the DWP which is paid to your lender. You then owe the DWP money if you sell your house.

    If you agreed to the loan from the DWP then you need to contact them now to make sure the SMI payments are going to the right lender. You can do that by calling the DWP on the letters they sent you about the loan. If you can't find the letters or you are not sure, I would call Jobcentre Plus on:

    0800 169 0310

    This is the number for people who are already on irESA. Explain that you think SMI is already being paid but may not be going to the right lender.

    It also sounds as if you might need some money advice to help you sort things out. If you haven't already agreed to the loan from DWP, you may find the payments stopped, so I'd get in touch with them quickly. There's more information about the DWP loan system here.

    I can't advise on whether it's a good or bad idea to take the DWP loan - most people don't have much choice. But the consequences are that you owe the DWP money when you sell.

    If you can, it might be a good idea to talk to a debt or housing adviser, face to face or on the phone. Shelter suggest that you talk to the Money Advice Service first.

    The Benefits Training Co:
    Paul Bradley
    Michael Chambers
    Will Hadwen
    Sarah Hayle
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  • TopkittenTopkitten Member Posts: 1,263 Pioneering
    When I was younger I opted for an interest only plan and the balance to be covered by an insurance policy. When the country's economy took a downturn I checked and the majority of those sold would be very unlikely to mature with sufficient capital to redeem the mortgage. Unfortunately the government did nothing to sort this out and left it up to the individual to find out and resolve it, which is what I did.

    I suspect your situation is similar.

    The advice above gives all the necessary information and I hope you manage to resolve it but do be prepared to move if necessary as the government is not being helpful to home owners.

    "I'm on the wrong side of heaven and the righteous side of hell" - from Wrong side of heaven by Five Finger Death Punch.
  • PwoodyPwoody Member Posts: 1 Listener
    Do you get reassessed when you have been awarded an SMI loan or do you have it as long as you need it?
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