JSA and Endowement mortgage shortfall.

shineray

I claim income based JSA intermittently due to the nature of my work.
I have had a red alert warning letter that my endowment is forcast to be £10,000 short.

I am trying to build up savings to cover this when the policy matures 2010.

What are the rules with regard to savings and JSA benifits in this situation.

It seems I am excluded from any claims to income based JSA....which seems unfair and unjust.

Its a real catch 22 situation.

Scarlett1

shineray wrote: »

I claim income based JSA intermittently due to the nature of my work.
I have had a red alert warning letter that my endowment is forcast to be £10,000 short.

I am trying to build up savings to cover this when the policy matures 2010.

What are the rules with regard to savings and JSA benifits in this situation.

It seems I am excluded from any claims to income based JSA....which seems unfair and unjust.

Its a real catch 22 situation.

you can have 6k in savings before it effects your benefits, but have you thought about claiming compensation for being miss sold an endowment policy from the company that sold it to you ?

ukdickie31

£6000 is the point on which income from savings is assumed at a rate of £1 per week per £250 over £6000 (starting at £6000).

ie £6000 in savings = £1 assumed income, £6250 assumed £2 income etc etc. This assumed income is taken off the applicable amount of JSA.

The maximum amount of savings you can have is £15,999.99

If you have £16,000, you can't receive Income Based JSA.

shineray

I cannot claim compensation, becuase I took out the policy b4 the FSA came into force.
I must be one of the first to have a shortfall and absolutely nothing can be done about it.

Well I have normal savings which are for normal purposes and do not affect JSA, now I'm looking to develope additional savings for this shortfall.
They have a specific purpose and should not be classified as income generating for JSA means testing.
Is there anyway round this.
Only thing I can think of is putting shortfall savings money in my dads name.

Scarlett1

shineray wrote: »

I cannot claim compensation, becuase I took out the policy b4 the FSA came into force.
I must be one of the first to have a shortfall and absolutely nothing can be done about it.

Well I have normal savings which are for normal purposes and do not affect JSA, now I'm looking to develope additional savings for this shortfall.
They have a specific purpose and should not be classified as income generating for JSA means testing.
Is there anyway round this.
Only thing I can think of is putting shortfall savings money in my dads name.

if you have a little extra to save can you not pay extra on your endowment then gradually over the years the shortfull wont seem so big ?

TOBRUK

I know you only have 3 years to go on your endowment but have you considered taking out a part payment mortgage - keep the endowment but the part repayment to cover the shortfall. I actually have a few years to go on my mortgage and two years ago I received a red letter regarding the shortfall but because I am now on benefit due to illness I was very worried. However I managed to change my mortgage to part repayment despite my current situation. If you took a part repayment mortgage out now to put your money in you won't have a problem about savings.

shineray

Thanks for the advice so far guys, much appreciated.
Anyway I don't see why I should pay more into an already under performing endowement plan, I can do better myself.

Also repayment of part of the mortgage with my savings is a poor investment option.
I should be free to invest this shortfall money as and how I see fit, and not be deducted JSA at the rate of £1 per £250 over £6000.

It seems the DWP are dictating my options just to stick to the unfair rules in this case.
The expense and effort to renegotiate an interest only mortgage with 3 years to run is madness, and with intermittent employement they are going to be difficult to get.

I think in this case I am fully justified in finding a way to fiddle the system.

Any ideas....

Becles

Can you make overpayments on the mortgage, rather than invest the money?

Your outstanding debt will be smaller when the endowment matures and hopefully it will cover it, and you'll not cause problems by going over the savings limit.

Voyager2002

Becles wrote: »

Can you make overpayments on the mortgage, rather than invest the money?

Your outstanding debt will be smaller when the endowment matures and hopefully it will cover it, and you'll not cause problems by going over the savings limit.

Yes: the best solution to this situation.

Use your savings to make a lump sum payment towards the mortgage, and immediately benefit from reduced interest payments. The benefit is completely tax free, and has no impact on JSA nor on other means-tested benefits. And it is completely legal!

Scarlett1

shineray wrote: »

Thanks for the advice so far guys, much appreciated.
Anyway I don't see why I should pay more into an already under performing endowement plan, I can do better myself.

Also repayment of part of the mortgage with my savings is a poor investment option.
I should be free to invest this shortfall money as and how I see fit, and not be deducted JSA at the rate of £1 per £250 over £6000.

It seems the DWP are dictating my options just to stick to the unfair rules in this case.
The expense and effort to renegotiate an interest only mortgage with 3 years to run is madness, and with intermittent employement they are going to be difficult to get.

I think in this case I am fully justified in finding a way to fiddle the system.

Any ideas....

Just carry on the way you are now and in 3 years time when your maturity matures pay off the shortfull with your savings, its ok wanting to make the most of investments, but when you are 10k short in paying off your house it dont seem logical

The DWP dont dictate they have guidelines, benefits are for those in need so if someone has savings then they are expected to live off them, this site dont condone fiddling the system and usually when people do that they get caught, wouldnt recommend it