Capital disregards

haz25a

Hi

I took out an interest only mortgage along with an endowment policy when I was working. Not suprisingly it's going to leave me with around a £10000 shortfall.

Due to disability I am no longer able to work and am unlikely to be able to work in the future.

My endowment policy matures in April 2018 BUT my mortgage term ends in 2025 (moved house and remortgaged in 2000). The value of the endowment policy is estimated to be around £17,000 to £19,000 which will take me over the £16,000 threshold for savings allowed, I'm on income related ESA and DLA.

My question is, will the DWP consider this to be a "capital disregard" if I use the money towards paying off my mortgage?

I have mental health conditions and have been under the care of a consultant psychiatrist and the community mental health team for many years and this is causing me a great deal of stress. Phoning the DWP has become such a stressful ordeal in recent years due to the introduction of call centres, call backs etc.

Any help would be very much appreciated.

Many thanks in advance.

Xbigman

There is no problem with this as the fact it is an endowment means it is specificly for paying off the mortgage. What you cannot do is put it in a savings account for any length of time. Within a few days of the endowment money hitting your account you should start the process of paying it off your mortgage. The DWP may query this so keep the paperwork handy just in case.



Darren

haz25a

Thank you so much for your reply Darren.

I "thought" it might be disregarded. When I know the actual figure I will contact DWP to let them know. There will be a paper trail as to where the money came from and went to.

Of course just to complicate matters, this would happen in the same month that SMI changes from a benefit to a loan but that's another story!

If anyone else has been in a similar position and are willing to share their experience, it would be most welcome.

Prudent

Calling the DWP can be very stressful. Would it be easier for you to write to them? If you keep a copy of the letter you would also have proof you informed them if it is needed in the future.

haz25a

Thanks for your reply.

Yes, I'll probably have to produce some sort of written evidence anyway so writing to them is probably a good idea. Of course, I will need to take into account the lengthy process of the DWP receiving the letter, it getting to the right department and me receiving a reply, which I calculate to be at least a month! Oh, and also send it special delivery so they cannot claim they did not receive AND keep a copy.

Thanks again.