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Statutory Charge interest payments if unemployed?

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05 Jan 12 #304824 by tru
Topic started by tru
Hi, I am unemployed and actively seeking an IT or secretarial job, with little success so far. I have just had a statutory charge registered on my property, where I reside with my 10 year old son. Can I receive government help in paying the interest on this charge, which amounts to almost £800 per year? I already receive help in paying the interest on the mortgage.

  • .Charles
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06 Jan 12 #304996 by .Charles
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No, the interest is charged against your property along with the principal amount.

Charles

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06 Jan 12 #304998 by tru
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Any idea why? This is effectively the same as my mortgage, also being a charge over my property. The only difference being the company or mortgagor having the charge.

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06 Jan 12 #305030 by .Charles
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Benefits can pay mortgage interest in order to prevent repossession. There is no right of possession where the interest on the Stat Charge goes unpaid.

It would be absurd if the loan that is the Statutory Charge)which is paid by the government) incurred interest which was paid by the government through benefits. Where does it end?

Charles

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06 Jan 12 #305043 by tru
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I take your point about the government loan accruing interest, the interest then being paid by the government, to be absurd, given that one cancels the other.

However, I would argue whether there should be any interest being charged at all. Historically it wasn''t and if I were able to find a job, I''d have no problem paying the interest and would in all probability seek a remortgage to pay off the statutory charge in full.

As I receive help paying interest on my mortgage which secures my home whilst not working, I do not see why the interest on another charge over my home would not also be considered.

The government is very familiar with giving with one hand and taking with another in any event :-).

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27 Apr 12 #326815 by .Charles
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I''ve only just spotted this response after last posting on the thread some months ago.

As a point of clarification the Statutory Charge has accrued simple interest for a couple of decades now - it has been as high as 12% per annum (from memory).

The interest seems high but it does not compound which lessens the blow somewhat.

Charles

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27 Apr 12 #326848 by soulruler
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I think 8% is way too high in this economic climate but do wonder whether the governement would want to change it as it would make debts due back look worse in the books.

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