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Benefit, Mortgage and Endowment question.

Rikki
Rikki Posts: 21,625 Forumite
in Benefits & tax credits
If you are claiming housing benefit and it pays for your interest only mortgage.

What happens when your endowment matures that is in place to pay off the mortgage? :confused:

Can you pay off the mortgage as intended and stop claiming housing benefit? :T
Or will this be seen as deprivation of capital? :eek:

..but this would leave you with an unpaid debt to the mortgage company and very serious financial dilemia.
£2 Coins Savings Club 2012 is £4 :).............................NCFC member No: 00005.........

......................................................................TCNC member No: 00008
NPFM 21

Comments

  • dmg24
    dmg24 Posts: 33,920 Forumite
    10,000 Posts
    Do you mean ISMI? Housing Benefit is not available for mortgages.
    Gone ... or have I?
  • Rikki
    Rikki Posts: 21,625 Forumite
    ISMI?

    The person I'm asking for just called it housing benefit. Basically they pay so much each week to her mortgage company..
    £2 Coins Savings Club 2012 is £4 :).............................NCFC member No: 00005.........

    ......................................................................TCNC member No: 00008
    NPFM 21
  • Rikki
    Rikki Posts: 21,625 Forumite
    Just googled ISMI ( Income support mortgage interest ). This will be what she gets.

    I just can't find out anything about what happens when she gets to the end of the mortgage term and wants to pay it off with the endowment.
    £2 Coins Savings Club 2012 is £4 :).............................NCFC member No: 00005.........

    ......................................................................TCNC member No: 00008
    NPFM 21
  • Scarlett1
    Scarlett1 Posts: 6,887 Forumite
    Rikki wrote: »
    Just googled ISMI ( Income support mortgage interest ). This will be what she gets.

    I just can't find out anything about what happens when she gets to the end of the mortgage term and wants to pay it off with the endowment.
    I would think that is what the dss would expect someone to do with the money when the emdowment matured, if they didnt then they would have money in the bank that would take them over the threshold and they would no longer be entitle to the mortgage support, might be worth ringing up IS :)
  • dmg24
    dmg24 Posts: 33,920 Forumite
    10,000 Posts
    Agree with Scarlett, the DWP would expect you to pay off the mortgage.
    ..but this would leave you with an unpaid debt to the mortgage company and very serious financial dilemia.

    I'm not sure what you mean by this? Why would you still have unpaid debt to the mortgage company?
    Gone ... or have I?
  • Rikki
    Rikki Posts: 21,625 Forumite
    Thats what she wants to do.
    She has no savings and is frightened that they will count this money as savings and not let her pay off the capital when the mortgage ends.

    She gets all flustered and confused on the phone. I will phone them next time I visit, if they will talk to me with her permission.
    £2 Coins Savings Club 2012 is £4 :).............................NCFC member No: 00005.........

    ......................................................................TCNC member No: 00008
    NPFM 21
  • Rikki
    Rikki Posts: 21,625 Forumite
    dmg24 wrote: »

    I'm not sure what you mean by this? Why would you still have unpaid debt to the mortgage company?

    Capital part of the mortgage. The part the endowment is there to cover.

    Sorry didn't make myself clear. :o
    £2 Coins Savings Club 2012 is £4 :).............................NCFC member No: 00005.........

    ......................................................................TCNC member No: 00008
    NPFM 21
  • dmg24
    dmg24 Posts: 33,920 Forumite
    10,000 Posts
    Get you, I thought you meant that there would still be an outstanding debt once you had paid off the capital element! x
    Gone ... or have I?
  • Rikki
    Rikki Posts: 21,625 Forumite
    dmg24 wrote: »
    Get you, I thought you meant that there would still be an outstanding debt once you had paid off the capital element! x

    :think: Under performing endowment, lets not go there. :eek:
    £2 Coins Savings Club 2012 is £4 :).............................NCFC member No: 00005.........

    ......................................................................TCNC member No: 00008
    NPFM 21
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