Would this be allowed?

Marcheline

Would I be entitled to claim Income Support if I put all my savings into a deposit for a house for me and my daughter to live in? My sister would not live there, but would pay the mortgage until my daughter goes to school (in Sept 2011) and then I intend to get a job and take over the mortgage myself.

It sounds like I would be deliberately depriving myself of capital now that I've written it down, but the reason for the post is because I obviously don't want to do anything untoward and would like clarification.

NASA_2

If you get rid of money in order to get benefit, or to get more benefit, then Deprivation of Capital is always going to be a consideration.

If dookar is around now or later then he is usually a good person to comment on stuff like this.

Vixie_Pixie

NASA wrote: »

If you get rid of money in order to get benefit, or to get more benefit, then Deprivation of Capital is always going to be a consideration.

If dookar is around now or later then he is usually a good person to comment on stuff like this.

yea he's around lol

there are some rules in terms of capital intended for the use of purchasing a home, but the mortgage situation would possibly call for deprivation of capital to be considered - would definately be something they would look into thats for sure

Marcheline

I've just read elsewhere on here that maintenance payments from my daughter's father would be taken into account for IS purposes anyway. He currently pays just over £250 a month. Would this disqualify me from receiving IS anyway?

Vixie_Pixie

i think they disregard the first £20 per week. I dont think it would disqualify you totally.

Marcheline

Thank you both for taking the time to reply. If anyone can give a definitive answer, I'd be pleased to hear it, but it does look as though it's at the discretion of the person surveying the claim form at the moment.

tr82

Marcheline wrote: »

I've just read elsewhere on here that maintenance payments from my daughter's father would be taken into account for IS purposes anyway. He currently pays just over £250 a month. Would this disqualify me from receiving IS anyway?

£250pcm=£57.69 pw

They'd ignore the first £20 pw of that and take £37.69 into account when working out how much Income Support you're due. Assuming you've no other income coming in (apart from Child Tax Credit) that means your Income Support entitlement would be £64.30-£37.69=£26.61 pw.

Would your name be on the mortgage too ? Otherwise you might be on dodgy ground with that one.

As it stands you wouldn't be using the money to buy your own home with your own savings and your own mortgage, you'd be giving your savings to your Sister so she can buy a house with her own mortgage.

It's difficult to predict how a Decision Maker would view that.

Vixie_Pixie

I think it depends on what the IS regs say and yes its likely to be at the descretion of the Decision Maker.

Marcheline

Well what we were thinking was that only my name would be on the mortgage and my sister would be just be paying it for me for approximately a year until I go back to work once my daughter starts school. Then the intention is to pay my sister back the money she has lent me.

Regardless of whether or not I could receive IS, the idea is attractive to both of us at the moment: I was just wondering how a claim for IS would be viewed by a decision maker, given the circumstances.

Oldernotwiser

Marcheline wrote: »

Well what we were thinking was that only my name would be on the mortgage and my sister would be just be paying it for me for approximately a year until I go back to work once my daughter starts school. Then the intention is to pay my sister back the money she has lent me.
.

I think you'll find it difficult, if not impossible, to find a lender to offer you a mortgage if your only income is benefits.

Marcheline

Of course they wouldn't, sorry I hadn't thought about that! Well it looks as though we'd both go on the mortgage for the first year then (in answer to tr82's post).