Partners and savings

tamias

viktory wrote: »

This attitude really annoys me. Why do so many think that if they have been prudent and saved they should be allowed to keep their savings and leech off the taxpayer instead?

The reverse attitude really annoys me, too. Why do so many people think that if they spend everything they earn on living the high life and exercise no financial prudence whatsoever, they should be allowed to leech off the taxpayer too?

The most imprudent thing I could possibly think of doing -- spending all my savings on a deposit for a house right now and taking on an unaffordable mortgage -- would paradoxically entitle BOTH of us to income and mortgage support at the taxpayer's expense. Of course I wouldn't do that.

I'll remind you that I'm not trying to claim a single penny for myself. I'm here trying to find practical solutions to help my girlfriend get through what is already a tough period for both of us with little iin the way of income, and all the unpleasant events at our previous house. I didn't want to get into a discussion about the morals of claiming benefits.

tazwhoever

OP - you are right, SMI only lasts one year I guess, on the mortgage house and the (crap benefit system and bank) would kick you out sadly. Rent the better, at least you can stay if work finishes, LHA would cover it...

tamias

tazwhoever: errm.. sorry, what are SMI and LHA?

Oldernotwiser

ceridwen wrote: »

MY other thought is whether you could pay back your student debt totally now from those savings - bang would go your house money or at least a substantial part of it - but you would not have such a large amount of student debt to pay off in the future - thus making it easier for you to save up again for a house.

That's some of the worst advice I've ever read on here!

Indie_Kid

tamias wrote: »

tazwhoever: errm.. sorry, what are SMI and LHA?

SMI = support for mortgage interest
LHA = local housing allowance. This replaced housing benefit (HB) a few years ago.

Oldernotwiser

OP, I think that you're losing sight of all the positives in your situation.

a.You're doing a funded PhD.
b. At a young age (particularly having been in education for a long time) you have substantial savings.
c. You could live somewhere very cheaply (although you don't choose to do so).

You really haven't done too badly out of "the system" and now, when things are going a little less smoothly for you, because of choices you've made it seems a bit unfair to complain about the "crap benefit system".

healy

viktory wrote: »

This attitude really annoys me. Why do so many think that if they have been prudent and saved they should be allowed to keep their savings and leech off the taxpayer instead?

Yes I agree with you, savings are there for when times are difficult and it seems perfectly reasonable to use them.

I cannot see that the benefit system is bizarre or "crap" because people have to use their savings, it seems fair and sensible.

nearlyrich

Wait till you have worked for 30 years paid in excess of £10k per year tax for the last 20 years and find that on being made redundant you are entitled to £66 per week for 26 weeks..then you can moan.

dmg24

ceridwen wrote: »

I think there might possibly be some sort of leeway time that one is allowed to hold onto "own a house" money for without it being counted???

You do need to check that.

Do you just make things up as you go along?

You can only ringfence money that was from the sale of a house and is intended to be used to buy another house.

karenx

tamias wrote: »

Seems to sum it up quite well, thanks tazwhoever!

Oh and I know there are no £30k houses, but I was saying I could put it down as a deposit and take on a mortgage which we can't afford (just as we can't afford the current rent), and then we'd be eligible for help with paying the mortgage, income support, etc. Madness.

Neither of you fit any criteria for claiming Income support. Not disabled, a carer or lone parent.
You would only get help with mortgage interest if you were on certain benefits and after a 13 week waiting period

So its very unfair to say you will be entitled to all this help when really you wouldnt