Forum Home  →  Discussion  →  Housing costs  →  Thread

The waiting period for a mortgage loan if someone has served the waiting period but has not applied in the past due to ignorance

 

iut044
forum member

Welfare Benefits Adviser, West Lancs Disability Helpline, Skelmersdale

Send message

Total Posts: 152

Joined: 17 June 2010

Hi

I have a client who has received ESA for a number of years.  She satisfies the criteria for a mortgage loan from the DWP.  She would have met the criteria for SMI for a number of years but did not apply because she was not aware of it.

If the client applies for a mortgage loan now, will she have to wait the 39 week waiting period?

Thanks

     
stuart
Administrator

rightsnet editor

Send message

Total Posts: 513

Joined: 21 March 2016

They will be treated as satisfying the waiting period for the loan subject to them qualifying under the other qualifying rules - but more importantly your client should be able to supersede the ESA decision to include SMI housing costs for the period pre April 2018, and get housing costs awarded without time limit - DMG Vol 1 Chapter4 para 04518 and reference to n SK (CJSA/516/2012) confirms that the usual 8 week limit from date of supersession request should not apply.

     
Income Max
forum member

Weymouth & Portland Citizens Advice

Send message

Total Posts: 79

Joined: 2 January 2018

I’m assuming she is entitled to IR ESA - there is no entitlement to SMI loan from CB ESA.

All the Regs say is entitlement to SMI loan begins day after “qualifying period” ends and qualifying period for legacy benefits is 39 consecutive weeks in which claimant is entitled to legacy benefit (Reg 8 and Reg 2 LMI 2017). This is repeated with no clarification in DWP guidance (ADM memo 8/18).

I can’t see anything requiring claimant to have actually applied for SMI loan in order for the qualifying period to begin, so your ESA claimant should have already served the qualifying period.

     
AlexJ
forum member

Trafford Welfare Rights

Send message

Total Posts: 49

Joined: 4 July 2016

iut044
forum member

Welfare Benefits Adviser, West Lancs Disability Helpline, Skelmersdale

Send message

Total Posts: 152

Joined: 17 June 2010

stuart - 10 May 2018 09:44 AM

They will be treated as satisfying the waiting period for the loan subject to them qualifying under the other qualifying rules - but more importantly your client should be able to supersede the ESA decision to include SMI housing costs for the period pre April 2018, and get housing costs awarded without time limit - DMG Vol 1 Chapter4 para 04518 and reference to n SK (CJSA/516/2012) confirms that the usual 8 week limit from date of supersession request should not apply.

Thanks for your help.  Which forms would I need to complete for the client to get the SMI housing costs paid?  Are these forms still available?

     
stuart
Administrator

rightsnet editor

Send message

Total Posts: 513

Joined: 21 March 2016

Used to be the MI12 form that is then forwarded to lender to complete - can’t find copy online (except a version for Northern Ireland), so probably best to ask for supersession and go from there.

     
iut044
forum member

Welfare Benefits Adviser, West Lancs Disability Helpline, Skelmersdale

Send message

Total Posts: 152

Joined: 17 June 2010

stuart - 14 May 2018 11:16 AM

Used to be the MI12 form that is then forwarded to lender to complete - can’t find copy online (except a version for Northern Ireland), so probably best to ask for supersession and go from there.

Thanks for your help Stuart, would I write a letter asking them to supersede the ESA award to pay mortgage interest and then separately complete the form for the DWP loan for the mortgage interest?

     
Elliot Kent
forum member

Shelter

Send message

Total Posts: 748

Joined: 14 July 2014

The simplest approach (a couple of months ago at least) would be just to ring up ESA and ask them to send an MI 12 to your client. Your client then fills that in and sends it to the mortgage provider who sends it on to the DWP. Whether this is still possible or not remains to be seen.

Writing and specifically asking for a supersession is more likely to result in confusion imo - even if the DM agrees that mortgage costs are payable, they won’t be able to make a decision without the information from the MI 12.