renting/mortgage on IS

panyanpickle

Hi, me again, finding this forum VERY useful, however could anyone tell me if because of me being on IS and owning my home,i get the interst paid. If you are familiar with my previous thread (benefit confusion) this question will make sense. After reading several other threads on here it sounds to me that i would be better off if i rented accomadation rather than owning my own home, (even though we have it drilled into us at an age that the best thing is to own your own home), It seems i would get help with my rent if i was working and getting my working tax credits yet with my mortgage if i worked i get no help whatsoever.
So what should i do, as with the impending divorce i have been told by my solicitor that i will get the house cos of the 2 children, I no if it was sold there would be no equity to come (racked up with debts i'm afraid), would i still not qualify for council housing as they see it as me making myself homeless.Sorry to waffle only i have soooo much to try to work out to do what is best for me and my 2 children.

Scarlett1

panyanpickle wrote:

Hi, me again, finding this forum VERY useful, however could anyone tell me if because of me being on IS and owning my home,i get the interst paid. If you are familiar with my previous thread (benefit confusion) this question will make sense. After reading several other threads on here it sounds to me that i would be better off if i rented accomadation rather than owning my own home, (even though we have it drilled into us at an age that the best thing is to own your own home), It seems i would get help with my rent if i was working and getting my working tax credits yet with my mortgage if i worked i get no help whatsoever.
So what should i do, as with the impending divorce i have been told by my solicitor that i will get the house cos of the 2 children, I no if it was sold there would be no equity to come (racked up with debts i'm afraid), would i still not qualify for council housing as they see it as me making myself homeless.Sorry to waffle only i have soooo much to try to work out to do what is best for me and my 2 children.

dont do it, even though it may be a struggle its YOUR house, if you privately rent you risk of having to move out after 6 months, my friend is in her 5th rented property in 3 years due to a mixture of the landlords selling up and houses that arent fit to live in

If you sell up you are intentionally making yourself homeless, depending on which LA you are under you might be refused a property or if anything be put up in a b & b.

edit: wanted to add aswell that if you do sell up and pay off debts you could be considered of intentionally depriving yourself of capital in order to claim benefits and you wont get them either.

plowter

The Shelter website has a useful overview of 'Income Support Mortgage Interest' http://england.shelter.org.uk/advice/advice-4176.cfm

Some local authorities operate a mortgage to rent scheme. If you're having difficulties, you could sell your house (all or part) to the local authority or housing association and rent it back under a standard tenancy agreement. It's an option.

If you're having money problems could I suggest you seek advice from your local Citizens Advice Bureau? They'll be able to carry out a benefits check, to make sure you're claiming what you're entitled to (includes Working and Child Tax Credits).

You can check whether you'd be entitled to Tax Credits on the HM Revenue & Customs website. Use the 'Do I Qualify?' section http://www.taxcredits.inlandrevenue.gov.uk/HomeNew.aspx. They don't need your name or personal details.

zappster1966

Yeah, if you do sell the house be really careful about what you do with any profit you make on the sale of the house. The DSS and council could indeed turn round and say that you deliberately deprived yourself of savings by paying off debts ... e.g. say you made £20,000 profit and for the year ahead your monthly loan/credit card repayments were £2,000 ... the DSS could say that the £18,000 profit could keep you for a year. If you simply repaid £20,000 off your debts and left yourself with nothing the DSS could argue that you deliberately paid the debts off with the intention of securing benefit that you weren't really entitled to. And they'd simply refuse to pay you for a year. It's a difficult thing for them to prove though.

It does seem unfair that if you receive working tax credit/work 16 hrs per week or more you don't get help with your mortgage whereas you might get help if you're renting.

Other thing to consider is house prices which are still drifting upwards. Once you come off the mortgage ladder you might find it difficult getting back on again if your circumstances change in a few years time.

panyanpickle

Hi and thx for your help. I can only hope that my solicitor was correct when she told me that as there was so much debt (and therefor no money left for me and kids if house was to be sold). As my ex isn't exactly being overly complying with sending in all his wage slips, p60 etc, this is what's holding up the divorce proceedings, i assumed that by now i would be nearly there, but we cannot even begin to arrange the finance side of things until he delivers all the neccessary paperwork required, that way i will be more in the know of what is going to happen to me and the children and no if i have to sell up etc.
I am hoping that the divorce will make things become more clear as ALL of this is too complicated and confusing for me.
sorry i waffle but i don't really have anyone else whom i can talk to.

panyanpickle

Btw, forgot to say before, i Have been to cab in the very beginning, they advised me to sell the house because of the £20,000 secured loan on it in both our names, plus the other debts, they also told me to seek a solicitor and when i did i was then told "NO WAY ON THIS EARTH" would i be selling the house, no judge would allow it, hence the TOTAL CONFUSION LOL, it's hard when you are being told 2 completely different things!!!!

kelloggs36

You may get the creditors trying to tell you that as they have a charge on your house, they can apply for an order for sale. It is impossible to say whether they would do this, and if they did what the outcome would be. The Court would have to take into consideration your circumstances and could allow the order subject to conditions, such as they can have the order once the children have reached a certain age - so suspending it so to speak. If the repayments aren't kept up to the mortgage co, they are likely to get a repossession order regardless of the circumstances if you are unable to come to any agreement with regards any arrears. I hate to sound so negative, but it is only fair that you have all info relevant so you can speak to your solicitor for further help and advice.

Scarlett1

panyanpickle wrote:

Btw, forgot to say before, i Have been to cab in the very beginning, they advised me to sell the house because of the £20,000 secured loan on it in both our names, plus the other debts, they also told me to seek a solicitor and when i did i was then told "NO WAY ON THIS EARTH" would i be selling the house, no judge would allow it, hence the TOTAL CONFUSION LOL, it's hard when you are being told 2 completely different things!!!!

yes I can see the problem, how big is your house and is it in an expensive area, is there any way then that you could sell the house and buy something a little smaller and cheaper ?

What you could do is go to the homeless section of your local council and ask them for advice, tell them that you are having to sell the house and you have no-where to go and they might come up with a way to help you, but do make sure you visit the shelter site that plowter posted above