Housing benefit and savings query??

staceydee

HI,

I am due to move into a rented property soon and because of personal circumstances still own my own mortgaged property which is currently up for sale and has recently been sold.

My query is god willing this house sale goes through I should come out with savings off approx 9500k however I owe most of this to my mum for my car which she got in credit in her name as i was unable to get credit or pay for the car due to paying my mortgage for the last 5 years and not being able to claim any benefit as it was mortgaged.

Therefore is the savings going to affect my housing benefit claim and if so by how much?? AND WILL THEY ACCEPT THAT I HAVE TO PAY MY MUM THIS MONEY BACK?

( i have looked at the housing benefit manual and it states they charge £1 for every £250 you are over £6000 in savings i think)??

All help is so gratefully appreciated. HOPE YOU UNDERSTAND THIS THANKS

karenx

Yes you will most probably be assessed as still having the full amount as you dont have proof of what the money is for. If the loan was in your name then it might be different if you were paying it off and could prove this is what you used the money for.

[Deleted User]

even if the loan was in the OP name they could only make normal monthly payments,paying the loan off early would be deprivation of capital(in most cases)

TOBRUK

Hi Staceydee, I was in a similar situation to you in that my parents gave me money to buy a car about 14 years ago. They gave me a cheque which I put into my bank and then I wrote a cheque for the car. A few years later I received compensation and as I was on benefit because I was ill, I wanted to pay my parents back but didn't know where I stood with benefits.

I wrote to the benefits office explaining that I had been given money from my parents and as I was about to be given compensation would I be able to pay them back ... I wrote in detail.

I received a reply asking if I had details, bank details when I received the money etc and I sent them bank statements showing details of the cheque received from my parents, and transaction for the car. They then sent me a letter to say they were satisfied and would allow me to pay them back.

I found them to be very helpful and I would advise you to write to them explaining everything in as much detail as possible - do not phone them, you need to have it in black and white incase of future queries. It will help if you can find any transaction details, bank statements, or anything that can prove you received this money/loan.

staceydee

tobruk wrote: »

hi staceydee, i was in a similar situation to you in that my parents gave me money to buy a car about 14 years ago. They gave me a cheque which i put into my bank and then i wrote a cheque for the car. A few years later i received compensation and as i was on benefit because i was ill, i wanted to pay my parents back but didn't know where i stood with benefits.

I wrote to the benefits office explaining that i had been given money from my parents and as i was about to be given compensation would i be able to pay them back ... I wrote in detail.

I received a reply asking if i had details, bank details when i received the money etc and i sent them bank statements showing details of the cheque received from my parents, and transaction for the car. They then sent me a letter to say they were satisfied and would allow me to pay them back.

I found them to be very helpful and i would advise you to write to them explaining everything in as much detail as possible - do not phone them, you need to have it in black and white incase of future queries. It will help if you can find any transaction details, bank statements, or anything that can prove you received this money/loan.

hi, thank you for your reply, i will make sure i do this as long as my house sale goes through fingers crossed!!!