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Income Support And Capital

Assuming you were living in one house and renting another, both have mortgages outstanding, if you claimed income support I know the second house would be capital but is this amount after outstanding mortgage is deducted or not? House worth 53,000 mortgage outstanding 49,000. Would they class the whole 53,000 as capital or first take off mortgage so leaving 4,000 as capital?

Comments

  • daff_duck
    daff_duck Posts: 202 Forumite
    Any help? I really need to know.
  • cattie
    cattie Posts: 8,844 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    I believe the whole is taken as capital. Mortgages are treated as loans by dwp & as such you have the benefit of the money you have borrowed to help you purchase the house, then pay back the loan (mortgage) each month to the lender.

    Loans repayments & other such outgoings are not taken into account when accessing a person's entitlement to income support.
    The bigger the bargain, the better I feel.

    I should mention that there's only one of me, don't confuse me with others of the same name.
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