CSA payments & Mortgage

RedKatt

I'm due to come into some money (inheritance) and would early love to pay a lump off the mortgage (or maybe even pay it off if that was possible, but not sure how much yet), which is joint with my hubby.

If I were to pay it off, how would that affect his CSA payments to his ex-wife?

The CSA have had details of all our outgoings, incl the mortgage, and both our income from before when they made their last assessment. Would the fact that we wouldn't be making mortgage payments any more mean that he would have to pay more CSA?

I could put the money in savings until his children are too old for CSA (another 4 years for the youngest) but the rate I could get would be way below our mortgage rate (fixed), so it doesn't seem to make sense - unless he'd end up having to pay out more to his ex (who is actually very well off and doesn't need the money - before I get moaned at for 'depriving' his children!).

Any ideas anyone? he is on CSA1.

Thank you.

RedKatt

Loopy_Girl

Have a wee read through this thread as the same thing was asked.

If you need cals for your circumstances then if you PM Kelloggs she will give you an idea of what you would be paying should you pay the mortgage off.

http://forums.moneysavingexpert.com/showthread.html?t=1662691

dimbo61

Wait until end of fixed rate deal and then look at offset mortgage !!

kelloggs36

If you are on CS1 then it will make a huge difference - if you want to know in more detail, PM me and I will work it out for you. I will need to know details of your current assessment.

RedKatt

Thanks everyone. I will get him to dig out the details and PM you Kelloggs - that is very kind of you.

Having read the other thread, I'm guessing that the way to go is to overpay the current mortgage (which I can do without limit it seems) and then to take out the overpayments (which I can also do for anything over £500) just before he's re-assessed.
Then when the fixed rate ends I should look for an offset. Not sure exactly how these work yet, but I guess that if I've got enough in it to cover the amount of the mortgage, then I wouldn't be paying any interest, but technically would still have that amount 'outstanding' on the mortgage.

Another question now occurs to me - sorry but I am fairly new to all this, never having had any money before! - when do re-assessments happen with the CSA? Will there be one when the eldest hits 19/finishes A-levels, and ditto the younger 2? Do these happen automatically, or does someone need to ask for them, and will they require all new forms/payslips etc, or will they just take the previous info as still valid?

Sorry for so many questions!

RedKatt

kelloggs36

You need to ask for them just to make sure!!

Soubrette

Also ask them about the situation with an offset mortgage - make sure you get the name of the person you spoke to and follow it up in a confirmation letter by special delivery.

I asked about the capital/equity held in an offset mortgage and was told I would have to get a Tribunal to rule on whether it was classed as capital or equity as it was not a situation they had come across.:rolleyes:

You might be lucky and speak to some body who is actually knows the answer rather than is keen to fob it off to another dept.

Sou

kelloggs36

the allowable housing costs are the minimum amount that is required to pay off the debt under the terms of the mortgage, so any offsetting amounts won't count towards housing costs are you are choosing to pay extra - it is not a requirement in order to pay off the mortgage.

dimbo61

you will be reassesed when the oldest turns 19 if the PWC tells the CSA so a little letter near the time might help!
DO NOT PAY OFF THE MORTGAGE
The money YOU have received is your money and not your husbands so why should you have to pay more CSA because you have paid off the mortgage!

RedKatt

Thanks again everyone.

Dimbo61 that is what I was thinking/feeling - I hate the mortgage 'debt' but would also hate to be paying any more of my money to his ex - I already pay for clothes & treats for the kids, and take them on holiday every year (DH doesnt have enough money left from his wages to do anything like that after he has paid his share of the bills and the CSA, even though he earns more than me). So I think that I will put the money in the mortgage for a while, and then take it out a couple of months before the oldest is 19.

Soubrette, DH called the CSA again and asked about what happends if we switch mortgage, but they hadn't a clue! Their suggestion was that we go ahead and do it, then send them all the details and ask to be re-assessed......like that is going to happen!
Also he asked when re-assessment would happen, but they kept saying 'when oldest leaves school at 18' BUT DH kept telling them he will still be at school until some months after he is 19, as he had to re-do a year......and this just confused them totally! Why I am surprised?