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Obtaining DWP permission to drawdown overpayments
- Gordon
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11 years 7 months ago - 11 years 7 months ago #112834 by Gordon
I have to admit I am struggling to understand the DWP involvement in this, especially in regard to whether you can go forward with this transaction, this is a contract between you and your mortgage provider, the DWP are not part of the relationship.
I would expect them to be potentially interested in the results on any such transaction, in regard to an increase in your capital, but even them, only if you are receiving an Income Related benefit such as (ESA(IR).
In addition to trying to get advice, it might be worth speaking to your mortgage supplier again to understand why they think the DWP need to be involved.
Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gordon on topic Obtaining DWP permission to drawdown overpayments
Earthsong wrote: Thank you for thinking about this, and for replying, Gordon. The one advisor I've so far managed to contact looked into it and wasn't able to find anything about the DWP/building society link-up. I'm trying to obtain help from another.
I have to admit I am struggling to understand the DWP involvement in this, especially in regard to whether you can go forward with this transaction, this is a contract between you and your mortgage provider, the DWP are not part of the relationship.
I would expect them to be potentially interested in the results on any such transaction, in regard to an increase in your capital, but even them, only if you are receiving an Income Related benefit such as (ESA(IR).
In addition to trying to get advice, it might be worth speaking to your mortgage supplier again to understand why they think the DWP need to be involved.
Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Last edit: 11 years 7 months ago by Gordon.
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- Earthsong
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11 years 7 months ago #112836 by Earthsong
Replied by Earthsong on topic Obtaining DWP permission to drawdown overpayments
Thank you for sharing this, Blue Peter. It sounds as though your son was not required to get permission from the DWP for his withdrawals of capital. Which is how it has been with my mortgage - until just now. If I've understood correctly what I've now been told by one of the staff of my building society, all banks and building socieies have recently agreed with the DWP that anyone who has ever had any DWP monies paid into an account to help with mortgage payments, will forever have to obtain written DWP approval before the bank or building society will feel able to raise a loan, repayment of overpayment, or increase the mortgage, via that account.
I hope whatever the exact situation over DWP approval actually is, that your son continues not to be affected by it, now or in the future.
Thank you again for sharing your experience, much appreciated
I hope whatever the exact situation over DWP approval actually is, that your son continues not to be affected by it, now or in the future.
Thank you again for sharing your experience, much appreciated
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- Earthsong
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11 years 7 months ago #112837 by Earthsong
Replied by Earthsong on topic Obtaining DWP permission to drawdown overpayments
Thank you again for your further thoughts on this. Yes, I'd been keeping the DWP informed about capital before the event because I too had thought that would be their interest, because I do received ESA (IR).
Thank you for your encouragement to keep talking with my building society. I think so far I've spoken with 3 levels (working my way up) and the highest most recently said: 'We have to have confirmation from the DWP that they are happy for any funds to be borrowed back from the account. ... It is a policy issue, an arrangement the (building society) has with the DWP and unfortunately we have to have confirmation that the DWP are happy for Nationwide to proceed with (the borrowback). That’s where we stand. It’s not a policy we can change at all. My understanding is that the next tier up will be contacting me by letter next.
Thanks again for your thoughts and suggestions. They're bucking me up in a difficult situation.
Thank you for your encouragement to keep talking with my building society. I think so far I've spoken with 3 levels (working my way up) and the highest most recently said: 'We have to have confirmation from the DWP that they are happy for any funds to be borrowed back from the account. ... It is a policy issue, an arrangement the (building society) has with the DWP and unfortunately we have to have confirmation that the DWP are happy for Nationwide to proceed with (the borrowback). That’s where we stand. It’s not a policy we can change at all. My understanding is that the next tier up will be contacting me by letter next.
Thanks again for your thoughts and suggestions. They're bucking me up in a difficult situation.
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