It sounds like common sense to say that if you have paid £900 rent a month for a couple of years then you can obviously afford a mortgage costing £900 a month. And if you live in London or the south-east, you will probably add that rents are so high you can't afford to save much for a deposit, so you need your good rental payment record to be taken into account in a mortgage application. This … [Read more...]
Getting out of debt
Practical articles about the different debt options, which might work for you and different ways of dealing with creditors
SMI is now only given as a loan (LMI) – should you agree to this?
Support for Mortgage Interest (SMI) helps people with the cost of their mortgage if they aren't working. It has been paid as a benefit since 1948, but on 6 April 2018 this changed and now it will only be given as a loan that is secured on your house. You may see LMI (loans for Morgage Interest) used as the new name for this, but the government is continuing to use the term SMI. This will … [Read more...]
SMI – what happens if you haven’t agreed to take the loan?
Support for Mortgage Interest (SMI) used to be paid as a benefit to people who weren't working - this ended on 5 April 2018. From 6 April someone newly applying can only get help with their mortgage costs through a secured loan instead. This is sometimes referred to as Loan for Mortgage Interest (LMI), but the old name SMI is also used. If you have been getting SMI before April, there are now … [Read more...]
Free access to your information – from 25th May!
You have the right to get a copy of the information that an organisation holds about you. But at the moment, under the Data Protection Act, this usually costs £10. On 25 May 2018, the General Data Protection Regulation (GDPR) comes into force and this £10 charge will end. The Information Commissioner's Office (ICO), which regulates this area, tells organisations that after 25 May they: must … [Read more...]
PerfectHome refunds £2million for imperfect lending
PerfectHome announced on 21 March that they would be refunding just over two million pounds to 37,000 customers.These payments will be made automatically over the next six months. This article looks at how much you may receive and what to do if you think you should get a refund but you aren't on PerfectHome's list. PerfectHome sells furniture, white goods and tech/entertainment items to low … [Read more...]
DWP chaos? Only 10,000 have agreed to new SMI loan
The Office for Budget Responsibility (OBR)'s Economic and Fiscal Outlook paper, published today with the Chancellor's Spring Statement, has this statement: DWP has told us that all current claimants have been contacted about the intention to convert their [Support for Mortgage Interest] award into a loan and of those that have responded, over half have indicated they are not interested while less … [Read more...]
BrightHouse and the return of the never-never
BrightHouse sell household appliances, furniture and tech products with the customer making weekly payments, usually for three years, and owning the item at the end. But it has emerged that only some 50 percent of BrightHouse contracts complete properly. When BrightHouse Chief Executive Hamish Paton gave evidence to the Treasury Select Committee in February 2018, he said: Typically across all … [Read more...]
Vanquis to pay £168 million in refunds for ROP from 2003
Vanquis will repay c £168,000,000 to over a million customers who had its ROP (Repayment Option Plan) on a Vanquis credit card since 2003. This refund is being paid because on 27 February, the FCA (Vanquis's regulator) announced the result of its investigation into ROP and concluded it was missold to every customer because the true cost was not explained to them. Vanquis had not told customers … [Read more...]
Can I overpay my interest only mortgage?
Mrs M asked: I have an interest-only mortgage of £91,000 with 11 years left, with no plan to repay it at the end. It was originally a repayment mortgage, but when I couldn’t afford the payments the bank suggested I switch to an interest-only mortgage. I went through with my bank an option to change to repayment but they didn’t accept me. Can I pay extra each month? Will it reduce the debt and … [Read more...]
Which debt should you pay off first? A reader’s case
Steve asked: I have received £4000 from a payday loan refund. I have a £2500 loan with Amigo, £1500 left on a Likely Loans loan, a £2000 overdraft and 750 x 2 on credit cards. (Limit 800 on each). My dilemma is not knowing how to spend the £4000 in order to boost my credit score. Which is the most damaging and needs paying first? Although your situation won't be the same as Steve's, you may be … [Read more...]
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