Incapacity Benefit - Getting element of Income Support

jenny81

tcr wrote: »

In fact, if you're borrowing £100,000 or thereabouts I can't stress enough how badly you need to see someone for professional guidance before you embark on this one, a financial adviser and/or someone well versed in the benefit system.

Thanks for your help, I really appreciate it. Yes I will be fully engaging in help from as many sources as possible before embarking upon taking out any mortgage. Also intend on talking it through with the DWP/Job Centre and making sure I will definately be entitled to it.

By chance do you know the job title of who would deal with this at DWP / JC?

tcr_3

jenny81 wrote: »

By chance do you know the job title of who would deal with this at DWP / JC?

Help with mortgages is dealt with by your local benefit delivery centre. You might have their phone number on a letter from the Incapacity Benefit people. Give them a call and ask for someone from their mortgage office to phone you back.

The Catch 22 is that DWP won't commit to anything before this change happens. And you shouldn't really commit to anything without an assurance the mortgage will be covered through the DWP SMI scheme.

Like others have suggested, you're maybe better waiting until your health improves, you get back into work and your finances are on a more sure footing. In wider terms, many are speculating that house prices are about to experience quite significant falls, I honestly don't think this is the right time to buy for most people.

TOBRUK

jenny81 wrote: »

The deposit etc will be financed by family, so there won't be a problem with getting a mortgage etc.

Now if I'm wrong someone will correct me but even if you are able to get a mortgage the DWP housing/mortgage department will want to see your bank statements etc. You will have to inform them of the money you have received from family enabling you to get a mortgage.

If they do decide that you are entitled to SMI there is a very strong possibility that they will not allow the sum given to you by family in their calculations. In other words if you bought a property for £150,000 and your family had given you £50,000 the £50,000 will be disregarded and you would only get help for the £100,000.

Even if you were able to get SMI, don't expect it to cover your mortgage payment because it probably won't and if it did it won't in the future!

You don't say what size mortgage you will be looking at as this is also relevant.

I honestly can't see that you will actually get a mortgage even with a large deposit given to you as your lender will go through all your accounts, your income and outgoings and will have to be satisfied that you are able to make the payments over a long period of time.

millym

As a long term sick and disabled person, I totally get where the OP is coming from with regards to security of tenure. I agree that for many people, owning your own home is the best option. I certainly would really struggle if we had to move house, the way my health is atm.

Morally speaking, the LHA the OP gets goes towards paying a LL's mortgage. Would it be so bad if, instead, SMI (at a lesser amount), goes towards paying the OP's mortgage? From what I've read on here, it would seem that the rules changed earlier this year, to allow people on benefit to buy and get SMI help. Or is this just a loophole and not intended to be used in this way?

OP, I really wish you would share with us how you can overcome the whole deprivation of capital stuff with regards to the deposit. If it is indeed possible to do this, please tell us how you are going about this. This info could help a lot of people.

Our income is a lot larger than the OP's, and we would be looking at a much smaller mortgage, maybe £50k or less.

I am still incredibly dubious that there is anyone who will lend to people on benefits in the current climate (or ever?).

Also, I would be very nervous about taking on a mortgage when there is no guarantee that I will still get the same benefits in future. We have no savings to fall back on. Probably better to hope that we will eventually get appropriate social housing (virtually everything that suits my needs is only offered to over 55s).

Morgan_Ree

millym wrote: »

OP, I really wish you would share with us how you can overcome the whole deprivation of capital stuff with regards to the deposit. If it is indeed possible to do this, please tell us how you are going about this. This info could help a lot of people.

.

Me too!
Sadly they won't share because they have no idea themselves. I'm still waiting for them to share the name of this amazing mortgage lender which I think dmg asked about 3 or so pages ago!

Indie_Kid

Morgan_Ree wrote: »

Me too!
Sadly they won't share because they have no idea themselves. I'm still waiting for them to share the name of this amazing mortgage lender which I think dmg asked about 3 or so pages ago!

I think everyone is...

stephief

Hi,

My partner (before we moved in together) was on higher rate IB, However, when we moved in together we have his IB still, but this gets 'topped up' with income support, to take us to the IS couples level, plus his disability premium, so now he is now also in reciept of IS. As a single claimant, he had no way of claiming IS himself as incap is higher. I dont think there is a way around this (other than having a partner move in!)

welshmoneylover

Forget it its a non-starter. No financial institution is going to grant someone on benefits a mortgage in excess of £100,000+

Successful businesses are struggling to get overdrafts to help with cash flows.

Heck, even employed people can't get one!

All a pipe dream.

millym

The mortgage provider must be Mysafehome Ltd - https://www.mysafehome.info

They are the mortgage providers for the HOLD scheme, but say they will provide mortgages that are not part of a Housing Asociation shared ownership scheme, as long as the applicant has a minimum 25% deposit and the £3000 fees.

So the only problem I can see with the OP's plans is the bit about the deposit and deprivation of capital. I don't understand why the OP won't tell us how this is gotten round. Either they don't know, or there is something slightly fishy going on.

I did find a leaflet online that would probably be really helpful to the OP...

I'll keep digging, see what I can find

calleyw

millym wrote: »

So the only problem I can see with the OP's plans is the bit about the deposit and deprivation of capital. I don't understand why the OP won't tell us how this is gotten round. Either they don't know, or there is something slightly fishy going on.

I am sure that a reply has touched on this already.

If the deposit is paid direct to the mortgage company then the OP has never touched it.

If they don't touch it then it can't be claimed as deprivation of capital.

Rather like the grandparents paying a private school direct for the fees. It has never passed to the parents so no problems for tax or IHT issues.

Yours

Calley