Do I have a leg to stand on? Universal Credit

[UndertheCedartree]

Sorry for another post on Universal Credit but mumsnetters are always so helpful with these issues. Unlike Universal Credit.

For the past 4 years I have been trying to apply for the Support with Mortgage Interest element of Universal Credit. This is due to me having a mental breakdown and being hospitalised. I am now home but still unable to work.

Finally, recently I was told I was owed the money and it was backdated, not to when it should have been, but still a step in the right direction I thought. A letter was posted on my journal saying the money I was owed would be paid in to my bank account. However, this didn't happen. It turns out the lump sum was sent to my mortgage company instead.

The issue is I couldn't just not pay the interest on my mortgage the past 4.5 years as the house would have been repossessed. I have been running up debts elsewhere so I could pay the mortgage on the advice of a debt charity. So I need that money to clear those debts. I have explained this all on my journal but of course had no reply.

Does anyone know if I have a leg to stand on? These debts have accrued due to me not being paid the money I was entitled to. It also clearly said on the letter the money would be paid into my bank account so could this be a mistake?

As an aside the only forms I filled in were to apply for the benefit. I actually haven't sent any of the loan agreement forms in. So in theory they are giving me a loan I haven't agreed to.

Any help would be much appreciated. I'm going spare as when I was told I was getting the money I told the debtors I was able to pay them back!

From the support for mortgage interest page on Gov.uk “SMI is normally paid direct to your lender.” So it does look like it wouldn’t come direct
y to you. If you have been paying the mortgage and now this lump sum has been paid - does this not mean you are in credit with the mortgage and could potentially take a payment holiday and pay the outstanding debt?

Can you speak to the mortgage lender and see if they'll repay the overpayment? Some will (some won't)

Ah, I hadn't thought of that, thank you!

Above was to @Allywill

@pizzaand - thank you, I'll try that

Hi, I’ve just come across your post and I’m in the same situation- been waiting years to get it, running up debt elsewhere and a lump sum going to my lender (Natwest) - interested to learn how you got on with your lender as I’m going to contact mine tomorrow. Thanks

@Fourplusme2021 can I ask why its taken so long? I'm currently having similar problems, it's been ongoing for a year, forms keep getting lost and filled out incorrectly by my mortgage provider. I'm in arrears and it's causing me so much stress x

Hi yes, exactly the same - I’ve done 3 lots of forms either getting lost or completed wrongly by the lender then having to keep chasing UC for updates on the application. They’ve paid my lender the back pay now and started monthly payments to them but I’ve had nothing from UC confirming it’s all been set up, such a rubbish process. Good luck, all I can advise is keep chasing, I got my MP’s office involved in the end who got me an electronic copy of the forms I could print at home - recorded delivery to the lender with a cover letter telling them what to do - I also had to register a complaint to my lender too. It’s so stressful. Wishing you lots of luck xx

This is so very similar to my situation, I'm at the end of my tether. I'm currently awaiting my 4th UCMI12 form to arrive and I've been advised to ask my mortgage company to return this straight to me rather than the DWP and then take it into a job centre for them to scan and upload straight to my journal. If you don't mind me asking were you in any arrears?? I am and they are threatening court action, the arrears I'm due from the SMI will more than cover the arrears. I'm not eating or sleeping at the moment 😔 x

Hi - I can see this hasn’t been updated for a while but am bumping it in case any of you reply!

I have been told we are eligible for this loan and that it can be backdated a year (when I first got a leaflet about it last year, I thought it wasn’t applicable because we do have some income, but I then found out that eligibility had changed & we can still claim it even while working).

My mortgage isn’t in arrears though. Like the previous poster, we continued to pay the mortgage but took a loan (at the much higher interest rate than the SMI one, so I intend to repay the high interest loan once our monthly mortgage payments are reduced).

I couldn’t get an answer from universal credit though about what will happen if there is a lump sum back payment to my lender. If anyone knows the answer, please let me know !

@Fourplusme2021 - I am hoping you had an answer by now as it was being paid directly to your lender :-)

@Fourplusme2021 mine is only just sorted !! First payment was sent this week to my mortgage company. Do you mind me asking if you had any money backdated and if so how long was it back dated?