Support for Mortgage Interest (SMI) advice

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Comments

  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    stay_positive said:
    So every 7 days I need a fit note sent in until a decision is made ?
    No, you've misunderstood what i advised. You can get a fit note for any length of time. My comment was advising that when you claim UC and report your health condition, you need to make sure you send a fit note within 7 days of reporting your health condition. If you don't and you're eventually awarded LCWRA it can affect when the extra money is paid from.

    stay_positive said:
    how strange this procedure is that the one being cared for is the one who is being assessed for work and the carer is not being assessed for work ?
    That's because a carer is not expected to look for work because they are looking after the person claiming the disability benefit.

    Claiming a disability benefit such as PIP doesn't automatically entitle you to limited capability for work.

    When you claim UC you can ask for telephone appointments due to your health conditions.

  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    edited May 2023
    stay_positive said:
    calcotti said:
    stay_positive said:
    calcotti said:
    stay_positive said:... Does carers allowance cease to exist then and will the uc and carers element be included altogether
    No, CA still exists and can be claimed. However if CA is received it is deducted from any UC payments so there is no financial benefit claiming both. So the situation is as the better part of your statement
    stay_positive said:
    .., or does he still receive carers each month and the uc which carers is deducted from ? 
    CA does not need to be received in order get the carer element of UC,
    But both cannot be claimed together , the £76.75 a week is deducted from UC and then the carers element is added ? I am so confused by it all.
    Both can be claimed but the total money received be the same amount.
    On the turn2us calculator , it says UC is £91 . carers is deducted but then £185 is then added which is carers element , so do carers top being paid into the bank and replaced by the UC £91 and £185 carers element ? sorry I am not understanding this .

    Your UC will include standard allowance (couples) £578.82 + carers element £185.86 = £764.68/month before deductions. Minus carers allowance of £332.
    Total UC payable will be £432/month. Carers allowance will then pay your husband £76.75/week.

    This means your total monthly amount will be £764.68, with or without carers allowance.

    Carers element is part of UC and will be included as part of your maximum UC entitlement.

    Once you've been through the work capability assessment if found to have LCWRA then your UC will increase by a further £390.06/month from the 4th month of your claim.
  • 2oldcodgers
    2oldcodgers Posts: 739 Connected
    woodbine said:
    SMI, great if you are struggling with your mortgage, to be avoided if you can manage your mortgage payments.
    Absolutely. If you can manage to pay the mortgage without claiming SMI then that's the best option. Whatever the DWP give you for SMI will eventually  have to be repaid to them + interest!
    Plus it will show up as another charge against the property more than likely causing future issues if you want to borrow money, take out a loan etc.

  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    stay_positive said:
    Poppy thank you for explaining that and for taking the time to do the benefit calculator i do appreciate it , and it is now clear . :)
    You’re welcome! Happy to help and glad it’s more clear now. The benefits system is confusing to say the least. 
  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    stay_positive said:
    Poppy, sorry another question .
    If I pass the fit for work assessment and get awarded the £380 a month benefit , is Universal Credit reduced because of it or is it actually that plus my PIP etc ?
    Thanks again lol 

    LCWRA element is an extra £390.06/month. It's part of UC and not a benefit on it's own and it increases your maximum UC entitlement.
  • jane13
    jane13 Online Community Member Posts: 2 Listener
    Smi loan should still remain a benefit especially to carers.. living on a taxable small carers income working for 35 hours or more a week and with no way of improving an unfortunate situation. The carer may be fit and well and able to work full time but unable because of care requirements and then on top of that restriction left with no choice but repay the Government back with interest for the privilege of saving the government a lot more than £78 per week to take care of the disabled person for 35 hours. The carer then faces retirement with no equity having paid stamp duty along with others costs involved at the time of purchase. The rented sector can claim housing benefits, which lines the pockets of already wealthy property owners. Purchasing a home or renting one is about personal choices, being a carer there is no choice. 
  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    jane13 said:
    The rented sector can claim housing benefits, which lines the pockets of already wealthy property owners.
    I don't think the majority of private landlords are as weathly as you think they are. Can you imagine the state of the country if those that are renting couldn't claim for help with the rent? There would be millions of homeless people....
  • jane13
    jane13 Online Community Member Posts: 2 Listener
    If you own more than one property, in my opinion you’re wealthy. Can you imagine how many evictions take place daily because of the interest hikes making mortgage repayments so high it’s unaffordable, and no help from the government other then a loan repayable with interest. I’d hate that to happen to the rented sector or perhaps it should.. a mortgaged property is just a glorified way of renting.. both someone’s home and both still need to be paid.
  • 2oldcodgers
    2oldcodgers Posts: 739 Connected
    SMI is a good way to 'protect' the equity built into their home.
    It's similar to borrowing the monthly mortgage payment from the bank but without any credit checks.
    With renting, the profit made by the landlord is small. The net rental income alone does not make them 'wealthy'. Once again SMI ensures that the equity remains in the property.
  • 2oldcodgers
    2oldcodgers Posts: 739 Connected
    stay_positive said:
    2oldcodgers said:
    SMI is a good way to 'protect' the equity built into their home.
    It's similar to borrowing the monthly mortgage payment from the bank but without any credit checks.
    With renting, the profit made by the landlord is small. The net rental income alone does not make them 'wealthy'. Once again SMI ensures that the equity remains in the property.
    SMI is a loan and we have to pay it back when we sell the house , that uses the equity . But right now for us it is the best option and it makes me feel secure knowing I won't have the house taken off us . Hopefully when the interest rates drop again we can pay more towards the capital , right now it is interest only . We're happy with this , of course that is if we get it .
    Yes it is a loan but if you don't have the available income it is far cheaper than using an overdraft.
    And by the time you want to sell up the increase in value of the home ( the further increase in the equity) will/could/should cover the debt - win, win.

    When I used SMI under the old scheme where it wasn't repayable the monthly SMI payment not only covered the interest but also reduced the capital balance each month. When they changed it to a loan the DWP were surprised that only a small minority wanted to continue with the scheme. I didn't want a loan so paid off the debt out of an endowment insurance policy linked to the mortgage. I must say that I was grateful for the old scheme as it reduced the debt by approx £80 a month over 4 years!!

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