Hi, can anyone help?
I have a client who's been receiving pension credit for help towards mortgage interest costs, however her fixed rate mortgage is now coming to an end & DWP are stating they will not increase her PC amount to cover the increase to her standard/variable rate. Is this correct?
Thanks, Julie

Unless the interest rate is below the standard rate (5%) then the interest attributable amount in PC, IS etc. is based on the notional interest rate used by the DWP which is now base rate + 1.58%. The amount actually paid is irrelevant unless the special offer was below 5%.

Although the rate is tied to base rate, it doesn't change automatically. It is a SoS decision when to apply the new rate and it might seem, to some, that it coincidentally matches the dates of system updates on the DWP computers.

ISMI Standard rate (base+1.58%) only I'm afraid - ie 6.58% until 16 November when it falls to 6.08%.

I don't think the old "actual rate if less than 5%" rule has applied since Nov 2005.

Thanks John

That'll teach me to rely on my memory. At least I got the 1.58% right (it always sticks in my mind because of the Armada).

Thanks very much for getting back to me so quickly.
Much appreciated.
Julie