In which situation would we be better off?

MDJO_2

Both my partner and I are facing redundancy (both identified as 'at risk'; my partner likely to lose his job in April, myself in November)
Neither of us have ever been unemployed and hence don't understand any potential benefits we may be entitled to.
We recently moved into rented accomodation and are in process of selling our mortgaged home.
If we sell our home, we are likely to be left with c. £50k residule equity; if we are both out of work, and stay in the rented accomodation, are we likely to be able to claim any benefits because we have this amount of money.
Or would we better off leaving the rented accomodation and moving back to our mortaged home.
Rent on property is £700 pcm and mortgage (at 1.49% interest rate) is £838 pcm. No children or dependents. My partner has MS but isn't registered as disabled or claiming any benefits (through pride more than anything)
I need to start to look into this, so any help would be much appreciated.
Many Thanks

getmore4less

What payouts will you get if made redundant.

Can you live on one salary

Will you lender let you go interest only if you get into income difficulties.

How much can you cut back now to save up.

Where are new jobs likley to be if you sell now you are readily mobile.

Can you generate income from your home if you live there eg lodgers

Why were you selling and renting


Get the OH into the system ASAP crazy not to be getting support for a disability. You also need to get to know the system beause it can be a pain to sort out when you realy need help if you are a bit naive n the processes.

Emmzi

getmore4less wrote: »

Get the OH into the system ASAP crazy not to be getting support for a disability. You also need to get to know the system beause it can be a pain to sort out when you realy need help if you are a bit naive n the processes.

Doesn't follow that MS = benefit entitlement, depends on severity. OP needs to take a view on stress of screenings appointments and reports vs likelihood of getting benefits.

getmore4less

Emmzi wrote: »

Doesn't follow that MS = benefit entitlement, depends on severity. OP needs to take a view on stress of screenings appointments and reports vs likelihood of getting benefits.

A lot easier to go through the process, the form filling and dealing with the people when you are not in a hurry to get anything.

You find out how the system works what the criteria are, if your local area has people that are supportive or tend to block or even lie about availability of support not just financial.

ceridwen

Whoops! Personally I'd move back to my mortgaged home quicksharp and make darn sure it was obvious in every way it was my "HOME".

Reason - people claiming benefits are only allowed to have £6k of "capital". If you have your house money anywhere it could look like "capital" you will lose it if you are unemployed for long - as the DWP will count it as "capital" and make you use it to live on.

I think there is a bit of leeway there - think there is 6 months????? in which one is allowed to keep house money safely to one side, whilst looking for another house to "invest it" in.

Up to you of course...and personally I am someone who finds it very difficult to understand why anyone would think of living in a rented place if they own a house. But - I DO think that house money is at risk if you dont do this and unemployment lasts for long...:eek:

NB: Be aware that for some years now the DWP doesnt give mortgage interest money for the initial weeks unemployed - think its now the first 13 weeks???? (so do make sure that you have sorted out how you could cover 3 months worth of mortgage interest if you DO find you are unemployed).

getmore4less

Crasy to even suggest this without the bigger picture.

The payoff might be good enough to live of for a while contributions JSA and a new job and the current plan has no issues at all and never touch the "house money"

Get back in the house and the new job offer needs relocation but house prices havve dropped and it takes time to sell could easily cost more than using a bit of savings or you have to not accept the job.

To many unknown variable ATM