H is leaving us. Do I claim mortgage interest payments or housing benefit pls?

imogengladhart

Hello

My H tells me he is going to leave us.

We have a joint mortgage of £140K, currently interest only.
We struggle to pay that tbh as he earns around £24K and I receive DLA and incapacity benefit.

We have 2 children, age 6 and 8. The 8 year old has ASD but we do not currently claim any DLA for that. My DLA/incapacity is about to be reassessed and I am certain that it will be reduced / stopped (not because I am not ill, but because the criteria has changed).

I would like to move area as my ASD child is not receiving appropriate educational support BUT I am scared of pinging between private rents (hard to get on benefits anyway) which would destabilise him.

Am I better to try to claim mortgage interest benefit (the current interest is £500 per month) or money towards a rental (around here about £650 per month, local housing allowance of £380).

Am feeling vunerable and want to make the best decision for long term financial stability.
Would be grateful for advice.

thank you.

princessdon

Ok, you know you only get the 2 bed housing rate, so bear that in mind.

Also is there equity in the house?

Will you be filing for divorce and claiming child maintenance from him?

Re the SMI or HB, it's a personal choice, but it's half his home too so seek legal advice on this. Also interest is only on purchase price, so if you have additional lending it may not be covered.

Housing_Benefit_Officer

If you live in the house you have a mortgage on then help towards the interest on the mortgage.

If it is private rented then you claim help towards the rent. Although they will ask questions regarding your previous owned address and you could be disqualified from receiving housing benefit if they don't disregard the owned property and it has a capital value of more than £35,200. (From the gross capital value 10% is deducted and the remainder is split 50/50).

imogengladhart

He doesn't want a divorce. Neither do I esp.
He will need to pay CM though.

Purchase price was around £150K but orig mort was only about £80K. So presumably would only get int help on that 80K? when mort now £140K. Current value around £180K but hard to sell house in hard to sell area. Was offered £150K for it 2 yrs ago. Declined.

Local CAB is SHUT, sadly and benefits line will tell you nothing: they just say: 'wait until he leaves and then come back and ask us'.

I was told by the area I wish to move to that I would have 6m put the house on the market and 12m to sell it, whilst claiming HB.

jacques_chirac

The usual rule is that the property is disregarded as capital for six months whilst it is being actively marketed.

What was the additional mortgage borrowing for? If it was for essential works on the house (and you can prove it), you may be eligible for help. If to consolidate loans or another reason, this would not be covered.

imogengladhart

Bit of both, tbh.

Just trying to get a feel of what would be the best thing to do: to try to stay in the house (someone told me you can only claim £150 towards the mortgage for a max of 2 years?). If I am going to 'lose' the house anyway, I might as well sell and get out now, iyswim?

jacques_chirac

imogengladhart wrote: »

Bit of both, tbh.

Just trying to get a feel of what would be the best thing to do: to try to stay in the house (someone told me you can only claim £150 towards the mortgage for a max of 2 years?). If I am going to 'lose' the house anyway, I might as well sell and get out now, iyswim?

The interest rate paid is 3.63%, so anything between £240 a month (for an £80,000 mortgage) to £420 (if the whole amount was allowed). It is limited to two years if you are claiming JSA, there is no limit if in receipt of IB/ ESA.

If you don't think you will meet the new criteria, is it worth starting to look for work? You would be able to claim WTC if you could get something for 16 hours.

imogengladhart

Thanks, Jacques Chirac.

Is there any limit for housing benefit, do you know?

Yy worth looking for work, but I am still unwell and will now be a sole parent to a disabled child and another child, poss in rented accom in a rural and depressed area so don't fancy my chances.

Don't mean to be 'poor me' just realistic.

jacques_chirac

imogengladhart wrote: »

Thanks, Jacques Chirac.

Is there any limit for housing benefit, do you know?

Yy worth looking for work, but I am still unwell and will now be a sole parent to a disabled child and another child, poss in rented accom in a rural and depressed area so don't fancy my chances.

Don't mean to be 'poor me' just realistic.

Is it worth you moving to somewhere rural? It's just another barrier to work, and may stop you getting out and about?

There is no time limit for housing benefit. You'll need to check the relevant LHA rate for your area.

If your child is in receipt of DLA MRC or higher you could claim Carers Allowance.

princessdon

imogengladhart wrote: »

He doesn't want a divorce. Neither do I esp.
He will need to pay CM though.

Purchase price was around £150K but orig mort was only about £80K. So presumably would only get int help on that 80K? when mort now £140K. Current value around £180K but hard to sell house in hard to sell area. Was offered £150K for it 2 yrs ago. Declined.

Local CAB is SHUT, sadly and benefits line will tell you nothing: they just say: 'wait until he leaves and then come back and ask us'.

I was told by the area I wish to move to that I would have 6m put the house on the market and 12m to sell it, whilst claiming HB.[/QUOTE

They will allow you 6 months, during which time it needs to be actively on the market, you will also be liable for the mortgage and probably the council tax during this time. If you decide to rent your home this can have positives and negatives.

Re additional borrowing, they are quite harsh - if you said new kitchen was needed and it cost £20k, they'll probably only allow the cost of a basic kitchen (5,000).

They'll also look closely at your separation, so be prepared for them to expect you to have properly separated, for tax credits they do expect people to look at permanent separation as temporary isn't considered for tax credits.

Once your house sells or after 6 months then they can use your equity will be used for benefits.

Don't forget you will get 20% of his wages too.