reducing savings to the £16,000 threshold

bertietheblue

I might be made redundant in October. If so, I would expect to receive a redundancy payment of around £25,000. This would put me above the £16,000 savings threshold for receiving mortgage interest support. I also understand that in any event I wouldn’t receive interest support for 13 weeks.

How might I legitimately, and reasonably, get from having £25,000 in my account at the point of redundancy to 16,000 in my bank 13 weeks later so that I am eligible for mortgage interest support? My normal in-work expenditure is about £500 a week on everything; mortgage-aside I have about £12,000 outstanding on a bank loan.

Thanks for any help
Bertie

Indie_Kid

You wouldn't be able to just pay chunks (what you're meant to pay each month is fine) off to claim benefits.

Why can't you just pay the mortgage interest yourself?

dmg24

sh1305 wrote: »

You wouldn't be able to just pay chunks (what you're meant to pay each month is fine) off to claim benefits.

Why can't you just pay the mortgage interest yourself?

What an excellent, common sense idea sh1305!

DaisyFlower

Why do you assume you are still going to be out of work in 13 weeks time, 3 months is plenty of time to source other work. You also have a lot longer if you start in advance.

Use the mortgage money to cover expenses between jobs rather than look for a way to spend it on other things in order to gain benefits.

DX2

Oh subbing to this thread.

Aarons_mummy

It strikes me as odd that you want to rid yourself of at least £9,000 to get below the £16,000 savings limit to allow yourself the bottom line of living on benefits.

You would have enough to live very well for at least a year before having to claim, 2 years being careful and more if you were living on the same amount as many people are on JSA.

I would not try and do anything that may get you sanctioned and look for a new job starting from now if you're aware you'll be getting made redundant in 3 months.

tts42010

You could always use your savings? Isn't that what they are there for...A rainy day?

tcr_3

bertietheblue wrote: »

I might be made redundant in October. If so, I would expect to receive a redundancy payment of around £25,000. This would put me above the £16,000 savings threshold for receiving mortgage interest support. I also understand that in any event I wouldn’t receive interest support for 13 weeks.

How might I legitimately, and reasonably, get from having £25,000 in my account at the point of redundancy to 16,000 in my bank 13 weeks later so that I am eligible for mortgage interest support? My normal in-work expenditure is about £500 a week on everything; mortgage-aside I have about £12,000 outstanding on a bank loan.

Thanks for any help
Bertie

When you're made redundant, claim Contributory Jobseeker's Allowance straightaway. That isn't affected by savings. It's £65.45 pw. That starts the clock ticking for the 13 wks mortgage qualifying date. Then simply let your savings naturally depreciate as you pay your normal day to day bills.

Once you're under £16k, at that point claim income based Jobseeker's Allowance. You may then find the help for your mortgage kicks in immediately because you'd already have served the 13 weeks via your contributory claim.

Although we all hope you get back into work before then

bertietheblue

Ah, "they that judge". But, you know, I have no time for the righteous disapproval of those who are ignorant of me and my full circumstances - strangers to boot! Anyone can go to bed smiling smugly, imagining the round of applause that never was. I find that wretched.

All I ask is can anyone provide an understanding of how the system works - never been unemployed, and, who knows, may not be come October?

Thanks alot
Bertie

bertietheblue

Thanks, tcr - that's all I wanted. Not all these judgements.

Aarons_mummy

bertietheblue wrote: »

Thanks, tcr - that's all I wanted. Not all these judgements.

Being fair you did just ask how you could decrease a hefty sum of money that you could easily live off to claim money from an already overstretched pot, you kind of set yourself up to be judged in that instance.