jobseekers allowance and mortgage benefits SMI

tomerke

Hi there,

I have two questions. I have read previous posts, but would like clarification as my questions were not answered in them.

1) I am currently on contribution JSA (job seekers allowance). I understand to be elgiible for the the SMI (suport for mortgage interest) scheme I need to be on income JSA. Very simply if I have savings of about 10-14k will I be eligible for income JSA?? I keep getting confused with this 6k-16k talk.

2) The potential support with SMI is 3.63% of 200k which is £605 a month a lot!! Plus with income JSA you get a council tax benefit, BUT this is proportional to your saving from 16k and below. The SMI seems to be you get it fully or not RIGHT??


Appreciate anyone who can make the effort to reply..

thank you vm

anamenottaken

tomerke wrote: »

Hi there,

I have two questions. I have read previous posts, but would like clarification as my questions were not answered in them.

1) I am currently on contribution JSA (job seekers allowance). I understand to be elgiible for the the SMI (suport for mortgage interest) scheme I need to be on income JSA. Very simply if I have savings of about 10-14k will I be eligible for income JSA?? I keep getting confused with this 6k-16k talk.

2) The potential support with SMI is 3.63% of 200k which is £605 a month a lot!! Plus with income JSA you get a council tax benefit, BUT this is proportional to your saving from 16k and below. The SMI seems to be you get it fully or not RIGHT??

(1) - Capital below £6K is not taken into account when assessing income based JSA. Above £16K capital and you don't qualify for income based JSA. Between those two figures, the amount will be reduced - the greater the amount of capital, the greater the reduction.

(2) - Is the mortgage for property in which you live? What's your actual rate of the interest on the mortgage?

McKneff

You seem to have spent a lot today, on your other thread you have 30K to 40K in savings!!!!!!!!

Do you really expect the government to pay your mortgage with that amount of savings.

tomerke

anamenottaken wrote: »

(1) - Capital below £6K is not taken into account when assessing income based JSA. Above £16K capital and you don't qualify for income based JSA. Between those two figures, the amount will be reduced - the greater the amount of capital, the greater the reduction.

(2) - Is the mortgage for property in which you live? What's your actual rate of the interest on the mortgage?

thanks for your reply..on the first question..basically my question is if you have say 14k of savings, and a 200k mortgage paying 3% interest..I will get 3.63% of interest paid by smi right? The extra 0.63% will go towards future interest payments (thats what the dwp site says).
And even if I had 3k of savings instead of 14k..AS FAR AS SMI GOES i get the same amount 3.63% of 200k right?
Thats the crux of my question...

thank you

tomerke

McKneff wrote: »

You seem to have spent a lot today, on your other thread you have 30K to 40K in savings!!!!!!!!

Do you really expect the government to pay your mortgage with that amount of savings.

well basically I have 10k to 14k of savings..and 25k put in my mortgage here which I am planning to take out and send abroad..Clear now?

real1314

tomerke wrote: »

well basically I have 10k to 14k of savings..and 25k put in my mortgage here which I am planning to take out and send abroad..Clear now?

Very clear. You won't get any JSA Income Based as you'll have about £40k of savings. Unless you're planning on committing fraud.

tomerke

real1314 wrote: »

Very clear. You won't get any JSA Income Based as you'll have about £40k of savings. Unless you're planning on committing fraud.

Real..try to be helpful. Im trying to decide whether to take out what i can withdraw from my home mortgage. Thats all, and I want to know if I will get penalized for doing so..

MrsBartolozzi

tomerke wrote: »

Real..try to be helpful. Im trying to decide whether to take out what i can withdraw from my home mortgage. Thats all, and I want to know if I will get penalized for doing so..

google "deprivation of capital"

CFC

tomerke wrote: »

Real..try to be helpful. Im trying to decide whether to take out what i can withdraw from my home mortgage. Thats all, and I want to know if I will get penalized for doing so..

Yes you will get penalised, and it may be treated as fraud as well if you keep it quiet and you get found out.

michaels

Would available funds within a flexible mortgage be treated as capital for benefits purposes?

No one seems to be able to answer your question re savings between 6k and 16k and SMI, possibly worth asking a benefits office?

tomerke wrote: »

well basically I have 10k to 14k of savings..and 25k put in my mortgage here which I am planning to take out and send abroad..Clear now?