Universal Credits

MissMoneypenny

danielanthony wrote: »

Are you hard of thinking?

I don't think it's me that is. Lets see..............

danielanthony wrote: »

I pay lots in income tax but my mortgage isn't paid off as I'm 34 and have a 30 year mortgage.

Then as you are only 34, you clearly haven't "paid lots more in contributions than the average" as you haven't been working and paying taxes for many years.

danielanthony wrote: »

I pay about £1700 per month in income and council taxes and so if I lost my job tomorrow do you not think I should be entitled to more support than someone who has contributed nothing or very little throughout their working lives?

Again, at age 34, you haven't had much of a "working life".

Why have you chosen not to take out an insurance policy in case you lose your job and then can't afford your mortgage? Why rely on the welfare state to pay your mortgage?

danielanthony wrote: »

Also, SMI only covers mortgage interest, not capital repayment so the amount owed to the bank remains the same.

Even more reason why you should take out an inurance policy. Plus SMI doesn't always cover all the interest on your mortgage (it depends on your interest rate and the borrowing) and only starts after13 weeks. That 13 weeks is just a temporary rule: expect it to revert to the normal 39 weeks before SMI kicks in, then you won't be upset if it does. Get a job and your SMI stops. Don't get a job and your SMI stops anyway (after 2 years).

Also, that capitial that isn't get repaid, is adding interest to your mortgage. Which means that you will owe the mortgage company even more money.

danielanthony wrote: »

my wife and I bought our 1st house in 2009 with a deposit we saved for ourselves with NO help from either parents

Many people do. But I'm not sure why you think this means you shouldn't bother to get full insurance; and that the welfare state should pay your interest instead if you lose your job? Shouldn't the fact that you saved for your own deposit, make you more keen to protect your property from getting repossessed, by taking out insurance policies???

When I still had a mortgage, I made sure I took out insurance polices in case I couldn't meet my mortgage payments. It didn't make financial sense, not to. Thankfully, I never had to claim on them. It's a bit like Life Insurance to repay the mortgage: you hope you will not have to claim on it.

Why would you even chose to jump through welfare hoops and all the welfare changes with Universal Credit and all future welfare changes i.e. the proposal that any SMI money, fees and interest, should be added as a 'charge' on the property? When you could just get insurance poilicies instead and then ignore any welfare changes. Having insurance is part of owning a house.

cattermole

PPI has killed it though in a way because now no one dare sell a protection policy at all!

I can remember a time when you couldn't get a mortgage without life assurance for starters, these days the banks have no interest in it. Especially if it was high loan to value. Trying to get a mortgage and being a bit older I asked my bank about it last week and they said they didn't take it into consideration. Which if you are older and can prove you already have adequate cover in place you would have thought they would.

In addition the policies are very expensive and rarely do they cover beyond 12 months.

So I think you argument is somewhat flawed Miss Moneypenny, in an ideal world yes but home buyers suffer far more if they are made redundant or ill and have no work, than someone who is renting.

cattermole

And you could also argue based on what Roger said that it is insurance, we just all pay into the general insurance pot.

MissMoneypenny

cattermole wrote: »

And you could also argue based on what Roger said that it is insurance, we just all pay into the general insurance pot.

He who pays the Piper, calls the tune.

If you want to dance to the welfare states tune (instead of taking out insurance and calling the tune yourself) then that's your choice.

MissMoneypenny

cattermole wrote: »

PPI has killed it though in a way because now no one dare sell a protection policy at all!

I can remember a time when you couldn't get a mortgage without life assurance for starters, these days the banks have no interest in it. Especially if it was high loan to value. Trying to get a mortgage and being a bit older I asked my bank about it last week and they said they didn't take it into consideration. Which if you are older and can prove you already have adequate cover in place you would have thought they would.

In addition the policies are very expensive and rarely do they cover beyond 12 months.

So I think you argument is somewhat flawed Miss Moneypenny, in an ideal world yes but home buyers suffer far more if they are made redundant or ill and have no work, than someone who is renting.

Forget all the excuses. Taking control of your life is a much better feeling.

bloolagoon

cattermole wrote: »

PPI has killed it though in a way because now no one dare sell a protection policy at all!

I can remember a time when you couldn't get a mortgage without life assurance for starters, these days the banks have no interest in it. Especially if it was high loan to value. Trying to get a mortgage and being a bit older I asked my bank about it last week and they said they didn't take it into consideration. Which if you are older and can prove you already have adequate cover in place you would have thought they would.

In addition the policies are very expensive and rarely do they cover beyond 12 months.

So I think you argument is somewhat flawed Miss Moneypenny, in an ideal world yes but home buyers suffer far more if they are made redundant or ill and have no work, than someone who is renting.

It's very cheap actually. For 70% of my salary (not just mortgage) I pay £24 a month. My husband who earns a larger wage pays £58 for his cover but that is for life if disabled and 12 months.

We didnt have cover for him 3 years ago and learned the hard way how little help you receive. No child tax credits, nothing apart from £70 a week. Never again would I rely on the state if alternative choices within my control are available.

gsullymorgan

The long term intention for mortgage support is to reclaim it (and interest and a service charge) when the home is sold or the claimant dies. This is why there is no 2 year limit on support in Universal Credit. It will apply to Pension Credit as well. There will be a charge placed on the property.