DWP/ UC setting people back financially - mortgage related [Merged]

parkrunner

Chandler85 wrote: »

It wasn't meant to be patronising. DWP and a lot of other government agencies are very pedantic, especially when it comes to giving people money even when they actual owe the money. Think tax refunds etc.


The fact remains that sadly you aren't as yet in a fortunate position to buy a house, which is frustrating but if you need the benefit to be paid to be able to live comfortable and afford the mortgage then you need to get that sorted then get a house. Because if the DWP took even longer after you had a mortgage you might miss payments and be in an even worse position.

It wasn't patronising, it was spot on.

45002

BristolBelle wrote:

I am posting more to vent than anything else, and maybe this will raise some awareness of how short-sighted the DWP are and how they are setting working people back financially rather than helping them.


I separated from my partner last year and we sold our jointly owned house. Because I had to separate our finances my tax credits were migrated over to the Universal Credit system which meant not only a decrease in entitlements but also a five week wait. This meant I had to break the purchase chain and move into the house I intended to buy on a 6 month rental agreement.


I was advised that the DWP would disregard the equity for 6 months to allow me time to purchase a new property for myself and my two sons, who are 1 and 3 years old. The proceeds of the sale were not enough however, after the deposit and agency fees had been paid, to allow me to purchase the house, so I had to find somewhere cheaper.


Unfortunately my claim to Universal Credit was cancelled from 3rd February, on 20th February by Iolanda of Flowers Hill Service Centre, due to the proceeds from the sale of my previous home not being disregarded as per UC policy paragraph 13 of Schedule 10 (capital to be disregarded) of the Universal Credit Regulations 2013 - in the middle of the 2nd mortgage application!


I have applied for a Mandatory Reconsideration, as covered by paragraph 13 of Schedule 10 (capital to be disregarded) of the Universal Credit Regulations 2013, and submitted evidence on 1st March. This was not acknowledged until 15th March on the online journal and I am unable to escalate this matter through the helpline, being told there are no statutory time limits for processing Mandatory Considerations, even though the error was not on my part in any way.


To compound the matter, I am now in a worse situation financially than I would have been had I not claimed UC at all, as I am paying for childcare that was accounted for as being reimbursed at 85% by UC, in addition to the loss of the £130 a month that is my entitlement.
Under the current circumstances I am unable to secure a mortgage for the amount agreed when I made the offer, despite having a large deposit and working 4 days a week, simply because of a totally unnecessary and arbitrary mistake on the part of a DWP individual, ostensibly lacking in knowledge of her own area of jurisdiction, but lets face it, probably acting on a covert directive to save money for the DWP.


I am almost at the end of my six month tenancy and no closer to securing the mortgage. I am at risk of homelessness unless I continue renting and ultimately I cannot sustain the costs of renting on a single income with two children without using up the proceeds from the sale of my previous property. This could ultimately means giving up my job and claiming more benefits than I would ever wish to, when all I want is to purchase a property based on what I am actually entitled to!
In both cases I have had to pay legal fees and search fees to purchase properties that have collapsed/ at risk of collapsing - because of matters relating to the policy/ lack of application of policy from the DWP.


I am just so angry at being caught up in their system and I have to take my youngest out of nursery and even in doing so my mortage application would still be declined as it would look I was trying to falsify my income!

Why have you posted the same post 3 times in different section of MSE


https://forums.moneysavingexpert.com/search.php?searchid=187240117




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huckster

From what I have seen most who claim UC in this situation, will either be in matrimonial home or they will be renting another house already.

If they are still in the matrimonial home which is up for sale, they won't have any equity released to request a disregard for at that stage. So there will not be any decision to be taken.

If they have moved out of the matrimonial home to rent somewhere else, they could declare that they own equity in a property they are not living in. The decision would then be to disregard the capital and owning another house they could arguable live at. If the disregard is accepted, it would normally be applied for 6 months to allow for the sale to go through. If the sale was delayed, they could ask for a further disregard period. No doubt in this situation, where someone is renting another property they have asked UC to include renting costs.

These capital disregards have to be time limited, as it would be unreasonable for Housing rent to be included on a UC claim, for an unreasonable length of time, when the claimant has capital exceeding £16k.

The important issue here, is that the capital position evidence is submitted to a UC Decision Maker ( DM) and they will make a decision they believe is fair. The decision can then be subject to mandatory reconsideration and tribunal appeal. At the point a disregard is refused, the DM would ask for the claim to be closed.

BristolBelle

Because it covers more than one forum topic.


Why are you so rude?

BristolBelle

Chandler85 wrote: »

It wasn't meant to be patronising. DWP and a lot of other government agencies are very pedantic, especially when it comes to giving people money even when they actual owe the money. Think tax refunds etc.


The fact remains that sadly you aren't as yet in a fortunate position to buy a house, which is frustrating but if you need the benefit to be paid to be able to live comfortable and afford the mortgage then you need to get that sorted then get a house. Because if the DWP took even longer after you had a mortgage you might miss payments and be in an even worse position.

I apologise. It is quite upsetting and frustrating. I don't feel I need to be told that my wages are rubbish; benefits shouldn't be counted and are not an entitlement (legally they are), and that I will just have to get on with it.


The fact is I applied for a mortgage in good faith based on how my finances were calculated. I have worked all my life and avoided claiming benefits because they can be taken away at any time. I am aware of that. I did not choose to be a single parent and I am learning that banks and some people do penalise and stigmatise us. We have to claim benefits even when we work, to cover the exorbitant childcare costs we are expected to pay, the alternative being not working at all.


I do appreciate you reading my post and taking the time to respond.

babyblade41

I think because UC is supposed t be a helping hand rather than a full time income ,I would imagine even more so now, lenders will not happily take it as permanent income

I can relate to being a single parent but benefits weren't readily available many years ago and my only choice was to work different jobs with various different employers to juggle child care.

A couple of Mums were in the same boat as me so we helped each other with the child care so maybe look into this with others at the school gates

`I really think though a mortgage is beyond reach at the minute and you will be stretching yourself to the max, which will impact your mental health which in turn will have a knock on effect with your children

My thoughts on your part about childcare costs that you are "expected " to pay, don't hold a lot of substance as having children is a choice and those costs always have to be factored in when considering children.
My youngest is 30 , in a long term relationship, they have bought there own home but will probably never have children because finances won't stretch ...a big sacrifice for them but realistically they would put any child they could potentially have under hardship which they just aren't prepared to do ..always a personal choice and a very hard one . They both have good jobs which neither particularly want to take time out of so they have chosen not to have children at all

Rather than berating the system I would make sure the father pays what he should be for his children

sheramber

Why is someone trusted with the car of our child not entitled to a respectable wage?

You could do what my SIL did. She started her own nursery to avoid having to pay someone else to look after her children wile she worked.

parkrunner

45002 wrote: »

Why have you posted the same post 3 times in different section of MSE


https://forums.moneysavingexpert.com/search.php?searchid=187240117




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BristolBelle wrote: »

Because it covers more than one forum topic.


Why are you so rude?

Good lord, how on earth is that rude?

theartfullodger

BristolBelle wrote: »

Gosh how patronising.

then....
Why are you so rude?

Are perhaps some issues related to your manner in communications?

(A calm polite question, not an accusation...)

further,

I have worked all my life and avoided claiming benefits because they can be taken away at any time. ...

Yet you mention childcare so presumably children so did you avoid claiming any maternity benefits or child benefit?

Best wishes and hope you manage to sort your life out.

Things do go wrong, relationships do break up, but people do survive.... Get help from local CaB who may have finance or benefits advisers:
https://www.citizensadvice.org.uk/about-us/contact-us/contact-us/search-for-your-local-citizens-advice/

Artful: Now on 3rd successful marriage: In receipt of 6 benefits thank you you generous tax-payers.

Zoezo

Sorry to hear this, I had to switch to UC following a split - I have had no where near 85% of child care cost paid either - which means I won't be able to take over my mortgage either.
I have no idea how they decide the 85%, I've tried phoning and get no where, no answer on the 'journal' either


Hope you get a solution