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Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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My mortgage is over £6500 pounds in credit, ,as it is a interest

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My mortgage is over £6500 pounds in credit, ,as it is a interest payment only, this has been brought to my attention by a letter from the mortgage company, they have giving me 14 days to inform them of my intentions, regarding this credit. The credit has accrued because the DSS, took over my interest payments, when I was giving pension credit about 4 years ago, at that time the interest rate was higher, the DSS said that regardless of the interest rate and mortgage payment at that time period, there was a laid down set formula, to set the payment, even if it was in excess of what was required to pay the lender, it was the DSS policy. At that time the interest rate fell dramatically, but the DSS continued to pay the same payment, until there next period of adjustment was due for review, apparently every 5 years.Even now despite the falling interest rates and their new adjustment figure on my assistance for pension credit and housing benefit, the payment still exceeds the required payment to the lender, hence ongoing credit on my interest only loan. I in the past informed the mortgage company of the DSS payment as part of my benefit ,to be paid direct to them, I also queried the interest qualifying payment with the DSS, once again they said that's the set rate across the board,and everything was in order, and to this day still is.Due to the recent letter from the mortgage company, regarding the credit, I might add the first in circa 5 years, They are now asking me,2 questions, 1. what is my intentions to wards the credit of £6500. 2, If I don't reply within 14 days from the date of their letter dated 14/09/2015. They will credit the said amount against the capital on my account. I called them to confirm to refund the full amount to my bank account, but was told they could not do that without investigating the credit, but there letter quite clearly stated I had only 14 days, to confirm what I wanted to do with the credit, and if I did not reply, within the time stated, the amount would be credited against the capital amount, to reduce the balance at the end of term of contract which still has nearly 8 years to run , before been paid in full ,this is my home, and by that time I will be 72 years of age.The questions I ask are, can they withhold that money, and investigate the credit? it seems there was no problem to credit the capital, but when I asked them to refund it, They just raised issues regarding the accumulated credit and its origin, and actually asking where did the money come from, I replied, it came from the benefit I was legally entitled to which entered your bank direct via DSS payments, which has been clearly identified on all my annual statements from the office of the mortgage company.
Hello my name is ***** ***** I will help you.
When did the DSS pay it?
Customer: replied 2 years ago.

Hi thanks, Alex.

all payments paid by DSS direct, this was part of my total benefit allowed since about 4 or 5 years ago, maybe 4 1/2 years ago. when I was awarded benefit of pension credit and housing assistance, amongst all the other help I was entitled find the exact dates of every monthly payment I would have to search through all my mortgage statements.

Ok - so you want to know whether benefit paid to clear your interest can be reclaimed by you?
Customer: replied 2 years ago.

Yes I guess so,as it was part of my overall benefit, and they were quite willing in their letter to me, to say what my intentions regarding the credit, and indicated if I did not contact them it would be automatically paid off my capital loan, reducing the balance by £6500.

Indeed. But it would appear that may have been an error. Clearly if the DWP paid interest and it was the intention then it was not to be paid direct to you to take out so to speak. I agree if you had done nothing within the time period then you may have received it, but the DWP could have later claimed it back - that was not the intention of the benefit paid.
I am sorry if this is not the answer you want and certainly not the one I want to give you, but i have a duty to be honest.
Can I clarify anything for you about this today please?
Customer: replied 2 years ago.

Ok thanks ,i guess I should have just let sleeping dogs lay, so to speak, but I queried the DSS about the time I was awarded the housing assistance, and as explained in my message to you, they replied ,there was no problem, and I have filled in a form to them several times confirming my mortgage details and ground rent have not changed,I guess it would have been better to have not responded to the mortgage lenders letter, and just allowed the credit to reduce my capital balance .Wiser now in hindsite. I guess I can only wait and see the response of the lender and any action they take.

I am sorry, can I clarify anything else for you?
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Customer: replied 2 years ago.

I,m going to write to them, and explain I have decided to allow the credit to reduce the capital, and see what happens, thanks for your honest opinion. Can you foresee any problem if I correspond to them in that vane.???

No, that should be fine - but it may be too late if they have started to investigate.

I am just following up to see if there is anything else I can help with?

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