"what if" question - owning your home outright

HurdyGurdy

I was talking to a friend today, and she is planning on selling her home in the south, clearing her mortgage and moving northwards and buying a house outright with the equity from her southern home. She still has about 10 years working life left, and is looking to work in her new area.

Her "wondering aloud" today was - if she owns her home outright, and then loses her job, would she still be eligible to claim benefits, or would she, as she has "money in her house" would she be expected to sell the house and use the money to live on?

We thought that sounded implausible, because surely she couldn't be forced into homelessness, and then by selling her home, wouldn't she then be making herself intentionally homeless and therefore not eligible for benefits?

This is just a "what if" scenario at the moment, and she won't be thinking of selling/moving for at least 12 months.

McKneff

No, if she owned her house outright, it would not be taken into account if she applied for any benefit.

She would be in a good position anyway, she wouldnt need to claim Housing Benefit (for help with any rent) she would not need to ask for help with mortgage interest payment.

All she would need to be paying for really is food, utilities, and insurance

So the anwer is that NO, she would be expected to sell her house

suki1964

If she loses her job she will be entitled to contribution JSA for 6 months then as long as she doesn't have more then £16k in savings, income related JSA owning a home doesn't count towards income

clairec79

The house that she LIVES in isn;t counted - though if she owned two the one which wasn't her main residence would be included as savings