What can I advise?

jangor_2

Today I met a couple but could not offer them any advice. The wife is working part time and is just under pensionable age but the husband is in receipt of a state pension. In the past they have remortgaged their property in the eventual hope that they would sell, downsize and use the remaining equity as their pension. They were then caught up in the credit crisis and realised that selling their house would not cover their mortgage. A short while ago the mortgage company took them to Court and they were given a suspension which has now expired and a repayment monthly sum was agreed with the mortgage company provided they do not default on one payment. They are managing to do this but now realise they have insufficient funds to pay other bills, i.e. gas, electricity etc. They hoped they would be eligible for Pension credit but the Pensions Office have told them no on the phone, although the couple have not completed an application form as yet. I understand that their total income per week is just over £200. They have no other income apart from the part time work and the state pension. They are trying not to lose their house but struggling to pay their bills. Are they eligible for any type of benefit or help. Any advice I can pass on would be much appreciated.

kelloggs36

Could either of them get another part-time job?

seven-day-weekend

Pension Credit is a means-tested Benefit which makes the couple's money up to £198 a week plus Council Tax and Rent (not afaik mortgage) paid.

As this couple already have £200 a week then they will not be eligible for it, although they may be eligible for some Council Tax Benefit on grounds of low income.

It may be advisable to see the CAB who will tell them if they are entitled to anything else, and help them apply if necessary.

Oldernotwiser

If they were able to sell their house for enough to cover their mortgage they would be able to claim LHA to rent another property. Otherwise I can't see how else they're going to be in any different financial situation throughout their retirement. They don't seem to be in a position to get help with the mortgage and, as 7DW says, they're already on more money than pension credit. Even if they can get some more part time work, that's not going to be enough to cover the mortgage for the rest of their retirement.

I can't see that they have very many alternatives to this, I'm afraid.

LizzieS_2

seven-day-weekend wrote: »

(not afaik mortgage)

Agree with all your post except above. There is a leaflet somewhere that does say mortgage interest is available to those on pc, I didn't find it, but this says the same in less words:
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_10018692

anmarj

the amount of mortgage interest will depend on what the remortagage was used for as well, this would be looked into before a decision is made. You may need to ask them if they gave any figures for mortgage when they called

Oldernotwiser

LizzieS wrote: »

Agree with all your post except above. There is a leaflet somewhere that does say mortgage interest is available to those on pc, I didn't find it, but this says the same in less words:
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_10018692

I didn't know that; thank you.

jangor_2

Thankyou so much for all the replies. I will contact the couple and let them know of the advice contained within the thread.

lavidaloca

I thought mortgage help was only on the original amount of the mortgage and not for remortgages unless it was home improvements and I think then you have to produce receipts.

lolababy

Hi how about them taking in a lodger . They can keep 4250.00 a year tax free from renting a room out. Fostering a child could also be an option.
House sitting where you mind other peoples houses whilst they are away. They could save on bills this way and get paid. Also pet minding/dog walking. Car boot sales, ebay.

bigbill

Pension Credit will say they need £208.45 weekly plus any allowable mortgage interest, if their joint incomes are below this there due some Pension Credit, even if they rae above it they should still be due some Pension Savings Credit.

They should be entitled to almost full Council Tax help?