Benefits, Mortgage & Savings

haunted6000

I live with my fiance as married, we both have disabilities and get DLA, I work part time (will be full time in june 2011) we get working and child tax credit, housing and council tax benifit, child benifit.
I currently earn before tax 9,900.00 and when i start full time i'll get 14,600.00.

I want to start planning, saving etc but I need to know how much i can save without effecting my benefits and what are the possibility of a mortgage, how will the individual benefits be effected?

welshmoneylover

haunted6000 wrote: »

I live with my fiance as married, we both have disabilities and get DLA, I work part time (will be full time in june 2011) we get working and child tax credit, housing and council tax benifit, child benifit.
I currently earn before tax 9,900.00 and when i start full time i'll get 14,600.00.

I want to start planning, saving etc but I need to know how much i can save without effecting my benefits and what are the possibility of a mortgage, how will the individual benefits be effected?

Does your partner work at all?

If you get a mortgage you won't be entitled to housing benefit.

haunted6000

My partner doesn't work, she is a "house wife", looks after our baby, the house etc.

other that housing benifit, would anything else be cut or affected? and i'll have to save for a deposit among other things, how would this effect my benifits

p.s I Won't be living in the house i'll be buying, I have a residental job, so they give me accommadation.

dmg24

Any means tested benefits will be affected once you have £6,000 in capital, and will cease once you have £16,000.

Do you live a very cheap area for buying, or are you just thinking about long term options?

haunted6000

I will be looking for a 10 year mortgage, probably borrow around 60,000 -80,000 giving a 10,000 - 20,000 deposit. I am able to save 10,000 over 2011 and 5000-10,000 in 2012 depending on circumstance and work.

dmg24

No disrespect but given your income your plans are very optimistic! Maybe review things once you have been in full time work for a while?

Caz3121

haunted6000 wrote: »

I have a residental job, so they give me accommadation.

does this come with your job or do you pay rent for it...confused as you say they give you the accomodation and also that you claim housing benefit

£14,600 will give you a net income of £11,998 .. will you really be able to save £10k of this? ... as your income increases your housing benefit will reduce as it will when your savings grow

AnxiousMum

Confuse......are benefits not to help those on low incomes meet their every day living costs throughout the month? Surely, if you are able to 'save' money throughout the year, you would also need to take into account any depletion in any means tested benefits as you hit the sliding scale of £6K in savings and beyond. Baffled as to why when you can save a large proportion of your income, you'd be limiting those savings so that you can remain in receipt of benefits - stashing cash under the mattress so as to avoid the loss of benefits....hmmmm. I'd be thinking they'd want to eventually know where the deposit came from and you'd need to have a paper trail to show where it has come from so you don't get done then for benefit fraud and failure to declare savings.

Accommodation provided as part of your job, but claiming housing benefits? Sounds dubious!

haunted6000

I guess i wasn't too clear, well the job comes with accommadation, full time position, so at the moment, being only part time, im renting, so that's why i currently get housing beneifit. the reason I can save 10000 2011 because i already have £4500 in savings, so if everything goes well and i budget right, next year i should be ok to save up 5500, and next year im sure if I work hard with over time and such I'll be able to save 5000 or more. which is like £200-400 (depending on how expenses go) a month, and any overtime etc I can add to the ISA.

I will declare the savings, just want to know what affect that will have.

Jowo_2

You can model some of the scenarios you have outlined on the Turn2us online benefit calculator, to find out how your full time income and different levels of savings will affect tax credits and council tax and so forth.

You are probably already aware but child benefit (below a very high income of nearly 50k) and DLA are not means tested and will still continue.