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help to buy isa and benefits

india
india Posts: 685 Forumite
in Benefits & tax credits
Does anyone know will the help to buy isa effect housing benefit and tax credits?
«1

Comments

  • Housing_Benefit_Officer
    Housing_Benefit_Officer Posts: 2,502 Forumite
    1,000 Posts Combo Breaker
    india wrote: »
    Does anyone know will the help to buy isa effect housing benefit and tax credits?

    It will be treated as capital. The first £6,000 capital is disregarded then assumed income of £1 for every £250 or part thereof. If capital reaches £16,000 your capital will be too high for Housing Benefit.
    These are my own views and you should seek advice from your local Benefits Department or CAB.
  • teddysmum
    teddysmum Posts: 9,501 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Would someone relying on benefits be able to afford both a mortgage and the maintenance cost of a property ?
  • tomtontom
    tomtontom Posts: 7,929 Forumite
    teddysmum wrote: »
    Would someone relying on benefits be able to afford both a mortgage and the maintenance cost of a property ?

    Quite possibly, if you've got enough kids ;)
  • Housing_Benefit_Officer
    Housing_Benefit_Officer Posts: 2,502 Forumite
    1,000 Posts Combo Breaker
    teddysmum wrote: »
    Would someone relying on benefits be able to afford both a mortgage and the maintenance cost of a property ?

    Many do - they will be !!!!!!ed when interest rates go up and realise Housing Benefit doesn't cover mortgages.
    These are my own views and you should seek advice from your local Benefits Department or CAB.
  • densol_2
    densol_2 Posts: 1,189 Forumite
    tomtontom wrote: »
    Quite possibly, if you've got enough kids ;)

    Absolutely agree ! Someone on here with 4 kids with disabilities was getting the equivalent of having to earn £72,000 plus maintenance and other stuff ! Madness !
    Stuck on the carousel in Disneyland's Fantasyland :D

    I live under a bridge in England
    Been a member for ten years.
    Retired in 2015 ( ill health ) Actuary for legal services.
  • vlad
    vlad Posts: 544 Forumite
    Housing_Benefit_Officer wrote: »
    Many do - they will be !!!!!!ed when interest rates go up and realise Housing Benefit doesn't cover mortgages.

    interest rates will probably not increase until 2017 and even then by only 0.5%-0.75%
  • Darksparkle
    Darksparkle Posts: 5,465 Forumite
    Unfortunately it doesn't affect tax credits.
  • silvercar
    silvercar Posts: 48,911 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    Housing_Benefit_Officer wrote: »
    Many do - they will be !!!!!!ed when interest rates go up and realise Housing Benefit doesn't cover mortgages.

    Support for Mortgage Interest (SMI) rates will go up if interest rates go up. In the same way that the max LHA is meant to go up when rents increase.
    I'm a Forum Ambassador on the housing, mortgages, student & coronavirus Boards, money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • Housing_Benefit_Officer
    Housing_Benefit_Officer Posts: 2,502 Forumite
    1,000 Posts Combo Breaker
    silvercar wrote: »
    Support for Mortgage Interest (SMI) rates will go up if interest rates go up. In the same way that the max LHA is meant to go up when rents increase.

    Working folk can't get SMI only people getting certain income related benefits and that's not guaranteed and only help towards the interest not capital repayments. Isn't this going to be changed into a loan anyway from 2018 repayable if someone returns to work with interest and an admin fee on top?
    These are my own views and you should seek advice from your local Benefits Department or CAB.
  • Housing_Benefit_Officer
    Housing_Benefit_Officer Posts: 2,502 Forumite
    1,000 Posts Combo Breaker
    densol wrote: »
    Absolutely agree ! Someone on here with 4 kids with disabilities was getting the equivalent of having to earn £72,000 plus maintenance and other stuff ! Madness !

    I'm sure the parents would want 4 healthy children rather than the additional benefits used to cope with their care and support.
    These are my own views and you should seek advice from your local Benefits Department or CAB.
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