Mortgage Interest payments

Jasmine3234 wrote: Hi are you guys able to help with advice over SMI? It's quite a simple question, but I don't want to type loads of stuff if this is something you don't advise on. Thank you in advance.

No we don't but we may still know the answer. it's up to you.

Gordon

Jasmine3234 wrote: Ok, I found out today I was still eligible to apply for a much lower interest rate via my mortgage provider, regardless of the fact I cannot work anymore.

My worry is would the DWP continue to pay a portion of the mortgage interest if it was classed as a "new" loan - which of course it isn't, it is the same mortgage I have had for just over 18 years.

Thanks

As always you'll need to ask the DWP before doing anything, but I don't see why not, however, they will only pay SMI on the original mortgage amount so if you increase the loan, the additional amount won't be covered.

Gordon

Jasmine3234 wrote: No, I wouldn't be increasing the mortgage loan at all.

So the way I'm understanding is that it doesn't matter to DWP how much interest I am personally paying (for example when they dropped theirs to 3.12% I had to pay more myself) I think it goes on how mortgage there is to repay.

I would just hate to make a bad decision ..

Our advice is always to get trained face to face help before making a decision where there are financial implications.

SMI is based on your original purchase load and the rate is set nationally and is not linked to the rate you are paying, I seem to remember a story from when inflation was in double figures that some people were receiving more in SMI than there payments were, although we won't see this again.

If you are not aware, SMI will be converted into a loan from 2018 (I think) onwards with interest being charged.

Gordon