Penalised for Mortgage protection/Job Seekers Allowance

activist3

Hello,
Instead of taking out payment protection on my mortgage and personal loan i took out £700 p/m income protection policy with Post Office as it works out about 1/4 of the cost than if i would have taken out normal payment protection. However i have just been made redundant and have had to claim job seekers. I have just been told that because the money is going to come to me first before the loan and mortgage then my job seekers allowance will stop. where as if it was paid directly to the companies which the policy wont allow they would continue paying me.

has anyone got any advise as it is driving me insane!!:mad:

madhouse

When my husband was made redundant a couple of years ago we were told that as long as the money into our account was only to pay the mortgage and mortgage related expenses ( none left over) then it was not taken into account so check this as they may be mistaken.

Good Luck

madhouse

Sorry, I just realised that your policy was income protection, ours was mortgage protection but was paid directly to our account.

activist3

Thats okay.

Thanks for the advice!!

It is £700

Mortgage is £565
Personal Loan £ 137

It is ridiculous.

Now my protection company wont pay out because i cant get an ABI1 form from the job centre and the job centre have suspended my claim as they are investigating the mortgage protection!