Redundant and mortgaged

custardy

LynnJC wrote: »

I'm new to this ... what does 'OP' mean? I have got payment protection insurance which will cover the mortgage payment (interest only as that is the basis of my mortgage) for 12 months. It was very cheap at the time I took the mortage out (plus I hadn't started on building up my savings at that point), so it seemed like a good idea.

yup i had a friend who was the same,made redundant and his mortgage was covered for 12 months with a slight overpayment as well
our mortgage is the same though when my partner got made redundant she got a job after 1 payment

savemoney

OP means Original Poster

LynnJC

opinions4u wrote: »

1) The assets described would, as far as I can see, affect means tested benefits.

2) If you have the ability to dispose of the assets by repaying your own debt, I believe this is allowed as your "net" position is unchanged. If you disposed of the assets by gifting them to your kids then that wouldn't be allowed.

Do a little bit of research on tax credits though. I was pleasantly surprised at what I would be entitled to when I thought my job was going to vanish.

It's great to get so much input, so quickly - thank you. Point (2) is interesting and I can see me going down the route of repaying as soon as I am able. Bit by bit, if necessary. At this late stage, there aren't any early repayment charges and the interest is calculated daily so there would be an immediate saving on interest (thus saving the benefits agency a little ... every little helps!).
I've done a directgov questionnaire thing that astonished me (in a good way) by the amount of tax credit I could get (single parent; 17 year old son in full time education). Of course, I won't know for sure until I actually apply.

LynnJC

savemoney wrote: »

OP means Original Poster

Oh dear, it's obvious now you tell me!!

[Deleted User]

LynnJC wrote: »

I've done a directgov questionnaire thing that astonished me (in a good way) by the amount of tax credit I could get (single parent; 17 year old son in full time education). Of course, I won't know for sure until I actually apply.

Just one thing to be aware of if you are getting tax credit. Interest on savings over £300 p.a. counts as income for tax credit purposes. If you are earning interest on a substantial redundancy lump sum then this may be relevant. However, the interest on cash ISAs and NS&I Savings Certificates doesn't count so could be a useful work around to avoid any unnecessary reduction in your benefit.