Savings definition and Mortgage dates

RedApple_3

Hi, I’m sure I’m not the first to ask, but I’m new here and although I’ve trawled the site I can’t find the answers to my questions.

Without boring you all with the why’s and wherfores, we are a couple who currently have no money coming in at all. We’ve used up redundancy payment and JSA has run out. So now paying all bills, mortgage, food etc from meagre savings which are dwindling fast.
Having been told we should apply for income based JSA /Income Support and council tax benefit, we’re now trying to fill in the forms.

First question - what do they mean by savings? Does this actually mean every penny you have, regardless of the fact it’s paying the bills each day and therefore not a static figure?

If I fill the form in with today’s bank balance, tomorrow it will be lower. So by the time someone actually gets to see the form, the figure will be way out.

Does this matter - am I worrying for nothing?

Second question - why does it matter whether your mortgage was taken out before or after 1995?

Original mortgage taken out in 1994 was transferred to a different Building Society a few years later. What should we answer - before - or after 1995?

Sorry if this sounds stupid, but never been in this situation before and these forms are befuddling me no end!

cw18

RedApple wrote: »

First question - what do they mean by savings? Does this actually mean every penny you have, regardless of the fact it’s paying the bills each day and therefore not a static figure?

yes. it's whatever shows in all your accounts (and purses!) on the day you complete the form..... and they'll want to see proof to support the figures.

Second question - why does it matter whether your mortgage was taken out before or after 1995?

because there are different rules on qualifying periods

Original mortgage taken out in 1994 was transferred to a different Building Society a few years later. What should we answer - before - or after 1995?

I'd query it with the benefits agencies, but if it was part of a take-over/merger rather than you applying for a new mortgage/remortgaging, then I'd expect to be able to declare it as before.

dmg24

Yes, savings means every penny that you have at the point of applying. You are allowed £6K before it starts to affect your entitlement.

Your entitlement to help with mortgage payments is different if it was taken out before 1995 (although only very slightly now). Assuming you did not take out extra borrowing on the later remortgage, and that the two mortgages ran concurrently, put down before 1995. They will contact you for more information on this.

RedApple_3

cw18 wrote: »

yes. it's whatever shows in all your accounts (and purses!) on the day you complete the form..... and they'll want to see proof to support the figures.

So that implies I should print out bank statements (we use online banking) that show exact figures for the day I fill in the form? Should I include them with the form or do they request them later?

RedApple_3

dmg24 wrote: »

Your entitlement to help with mortgage payments is different if it was taken out before 1995 (although only very slightly now). Assuming you did not take out extra borrowing on the later remortgage, and that the two mortgages ran concurrently, put down before 1995. They will contact you for more information on this.

The mortgage was moved to gain a better interest rate at the time.

Oh and the type of mortgage was changed from interest only with PEP to a Repayment one. Does that still count as before 1995, or does that make it a new mortgage?

cw18

RedApple wrote: »

So that implies I should print out bank statements (we use online banking) that show exact figures for the day I fill in the form? Should I include them with the form or do they request them later?

I'd print them out on the day.......

I applied over the phone, got the form, checked it, signed it, and returned it. I then got a letter asking me to produce them later on.

RedApple_3

cw18 wrote: »

yes. it's whatever shows in all your accounts (and purses!)

Hmm, how does one prove what's in your purse - put the pennies on the table and take a photo?

dmg24

RedApple wrote: »

The mortgage was moved to gain a better interest rate at the time.

Oh and the type of mortgage was changed from interest only with PEP to a Repayment one. Does that still count as before 1995, or does that make it a new mortgage?

That should count as before 1995. Nonetheless, they will ask for all relevant documentation at a later date, so the Decision Maker will make the final decision.

I'm not sure whether they are planning to change the rules for those with older mortgages, as you may not be better off on the old scheme. This area is changing in January, and the JCP will send you more information on this.

dmg24

RedApple wrote: »

Hmm, how does one prove what's in your purse - put the pennies on the table and take a photo?

Don't worry, it is more a concern if you have got £20K stuffed under the mattress.

RedApple_3

dmg24 wrote: »

You are allowed £6K before it starts to affect your entitlement.

Does that mean £6K per person or £6k between you?

cw18

£6k between you. Over £16k you'll not get anything that's means tested. Between those figures they reduce any benefits by £1/week for every £250 (or part thereof) you have -- so savings of £6751 will see a £4 reduction, as will £6999