In reply to Sara (Debt Camel).

It can take a long while to come through – in 2019 – 9 months. Phone the benefit office for a timeframe. Your lender knows you have applied, so they’ll be okay about waiting. They cannot evict you whilst waiting.

The amount of SMI you will receive could vary and is interest only. Calculate the expected difference now and pay this to avoid a growing arrears debt. SMI is 2.65% and your interest rate is 8.13%, you will need to make up the 5.48% difference. If you remortgaged, you will only receive payment to cover the interest for the original mortgage amount.

Ask your lender about whether they recognise the 13th payment because SMI is paid every 4 weeks. Many lenders will only accept 12 payments – 1 per calendar month. If a lender doesn’t recognise the 13th payment, you could always be a little in arrears…and charged a bigger monthly late payment fee.

Also check out the Mortgage Charter on the FCA website in case any options are suitable for you. Use the Norgan agreement if you have arrears to enter into a payment plan.

If your mental health is suffering and you have arrears, you can apply for the Breathing Space scheme. There are two options, a short term one, or if you are under CMHT or a psychiatrist, you can stop any debt collection activity until after your treatment has ended.