Gareth Morgan
Managing Director, Ferret Information Systems, Cardiff
Member since 20th Feb 2004
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RE: Mortgage Interest Costs via Pension Credit
Fri 17-Oct-08 12:11 PM |
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.
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