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    • scrutineer-rob
    • By scrutineer-rob 11th Jun 17, 2:02 PM
    • 1Posts
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    scrutineer-rob
    State Pension and mortgage help
    • #1
    • 11th Jun 17, 2:02 PM
    State Pension and mortgage help 11th Jun 17 at 2:02 PM
    I'm soon to be transferred from Pension Credit to New State Pension once I reach retirement age. At the moment I get some help with my mortgage interest. Also I have no Council Tax payment. When they transfer me to the New State Pension, can I still get mortgage interest help, and what payment if any will I have to make re Council Tax.
Page 1
    • anmarj
    • By anmarj 11th Jun 17, 2:26 PM
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    anmarj
    • #2
    • 11th Jun 17, 2:26 PM
    • #2
    • 11th Jun 17, 2:26 PM
    State pension itself does not give you help with motrgage interest, only Pension Credit, so if you have no entitlement to Pension Credit at all once State Pension has gone into the Pension Credit claim, then there will be no assistance available.
    mummy to one

    "A little knowledge is a dangerous thing"
    • Silvertabby
    • By Silvertabby 11th Jun 17, 3:08 PM
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    Silvertabby
    • #3
    • 11th Jun 17, 3:08 PM
    • #3
    • 11th Jun 17, 3:08 PM
    The idea of the new single tier pension is that the full rate of £159 per week is set at just over the means test limit, so that's your lot I'm afraid.

    That said, I believe that housing benefit will still be payable in some cases, but you will need to take specialist advice re your particular situation.

    How on earth did you get a mortgage to run post-retirement when your only income would be the State pension? Dare I ask if you have a private/occupational pension that you haven't drawn on because of the impact on your means tested benefits?
    • xylophone
    • By xylophone 11th Jun 17, 3:29 PM
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    xylophone
    • #4
    • 11th Jun 17, 3:29 PM
    • #4
    • 11th Jun 17, 3:29 PM
    Dare I ask if you have a private/occupational pension that you haven't drawn on because of the impact on your means tested benefits?
    If he had and was PC age, he'd have been expected to draw it (unless it was a scheme pension that became payable without actuarial reduction at eg 65) or have it taken into account as notional income

    https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/417473/pension-flexibilities-dwp-benefits.pdf


    If you (or your partner) are over the qualifying age for
    Pension Credit


    Once you (or your partner) reach the qualifying age for Pension Credit, you are expected to use your pension(s) to help support yourself.

    If you choose not to buy an annuity after reaching the
    qualifying age for Pension Credit, an amount of “notional” income will be taken into account when your benefit is worked out.

    “Notional” income (in this case) is an amount equivalent to the
    income you would have received if you had bought an annuity.

    If you take an income from your pension pot, the amount which will be taken into account when assessing your benefit will be the higher of the actual income or notional income. If you take a
    cash lump sum, this will be taken into account as capital.
    • Silvertabby
    • By Silvertabby 12th Jun 17, 12:24 PM
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    Silvertabby
    • #5
    • 12th Jun 17, 12:24 PM
    • #5
    • 12th Jun 17, 12:24 PM
    “ Dare I ask if you have a private/occupational pension that you haven't drawn on because of the impact on your means tested benefits?
    If he had and was PC age, he'd have been expected to draw it (unless it was a scheme pension that became payable without actuarial reduction at eg 65) or have it taken into account as notional income Posted by xylophone
    Then that adds weight to my guess that OP has an occupational/private pension that he can draw on from age 65, otherwise I can't see how he obtained a post retirement mortgage.

    I know from past experience (retired LGPS adminstrator) that some LGPS deferred pensioners have refused to take payment of their benefits from 60 (no reductions) or even 65 because the LGPS pension was less than the means tested benefits they would be giving up. Not a lot we could do if the pension member refused to co-operate/give us their bank details. However, DWP do eventually catch up with them.
    Last edited by Silvertabby; 12-06-2017 at 1:32 PM.
    • DevonFella
    • By DevonFella 14th Jun 17, 2:09 PM
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    DevonFella
    • #6
    • 14th Jun 17, 2:09 PM
    • #6
    • 14th Jun 17, 2:09 PM
    I have a similar query. I am currently awaiting written confirmation of entitlement to pension credit and have been advised to apply for help with interest payments using form MI12. My concern is that I am flagging to my lender that my wife and I are financially challenged, albeit probably temporarily. Would our credit rating be downgraded as a result?
    (In 2-5 years we expect to downsize but would be looking for a mortgage into retirement based on my wife’s earnings at the time.)
    • teddysmum
    • By teddysmum 14th Jun 17, 4:47 PM
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    teddysmum
    • #7
    • 14th Jun 17, 4:47 PM
    • #7
    • 14th Jun 17, 4:47 PM
    I have a similar query. I am currently awaiting written confirmation of entitlement to pension credit and have been advised to apply for help with interest payments using form MI12. My concern is that I am flagging to my lender that my wife and I are financially challenged, albeit probably temporarily. Would our credit rating be downgraded as a result?
    (In 2-5 years we expect to downsize but would be looking for a mortgage into retirement based on my wife’s earnings at the time.)
    Originally posted by DevonFella
    Mortgages are not easy to get as you age.


    I know of a couple who owned a house outright, but wanted to buy a house for their daughter to live in .They were in their early fifties , but turned down due to age, even though the house they owned was worth a lot more than the proposed acquisition.
    • IAmWales
    • By IAmWales 14th Jun 17, 6:29 PM
    • 789 Posts
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    IAmWales
    • #8
    • 14th Jun 17, 6:29 PM
    • #8
    • 14th Jun 17, 6:29 PM
    s-r, you will need to be assessed for an underlying entitlement to help with housing costs.

    I have a similar query. I am currently awaiting written confirmation of entitlement to pension credit and have been advised to apply for help with interest payments using form MI12. My concern is that I am flagging to my lender that my wife and I are financially challenged, albeit probably temporarily. Would our credit rating be downgraded as a result?
    (In 2-5 years we expect to downsize but would be looking for a mortgage into retirement based on my wife’s earnings at the time.)
    Originally posted by DevonFella
    SMI will not be noted on your credit file, although your current lender will be aware.

    Is your wife currently in employment? Her income will be taken into account when calculating your entitlement to SMI.

    Mortgages are not easy to get as you age.


    I know of a couple who owned a house outright, but wanted to buy a house for their daughter to live in .They were in their early fifties , but turned down due to age, even though the house they owned was worth a lot more than the proposed acquisition.
    Originally posted by teddysmum
    You're talking about a regulated buy to let mortgage, DF is asking about a residential mortgage.

    Some lenders will lend to people into their seventies based on pension and/ or earned ncome. DF would be best to see what their existing lender will offer them, and work with a broker who will know which lenders lend to older customers.
    • hartcjhart
    • By hartcjhart 16th Jun 17, 12:49 AM
    • 8,556 Posts
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    hartcjhart
    • #9
    • 16th Jun 17, 12:49 AM
    • #9
    • 16th Jun 17, 12:49 AM
    it seems this is a 'muddy area' that would be resolved by your local ,dss,peeps
    I MOJACAR
    • teddysmum
    • By teddysmum 16th Jun 17, 3:27 PM
    • 7,761 Posts
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    teddysmum
    it seems this is a 'muddy area' that would be resolved by your local ,dss,peeps
    Originally posted by hartcjhart

    It doesn't exist.
    • hartcjhart
    • By hartcjhart 18th Jun 17, 2:33 PM
    • 8,556 Posts
    • 10,728 Thanks
    hartcjhart
    dwp............................................... .........
    I MOJACAR
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