UC, separation, house help.

Logan112

I’m currently on UC. My husband & I are separating. He is also on UC with no realistic expectation of him being able to return to work in the near future or being able to contribute towards the children financially. We have a large mortgage.

Over the last year we’ve had a lot of very difficult things to deal with and if it’s at all possible to reduce the impact of the separation on the children by staying in this house then that’s what I wish to do. So we’re looking at various potential scenarios (all of which would need to be checked with a solicitor to ensure it’s fair to my husband as well, I have no desire to short change him).

My father would be able to cash in some investments and basically give me some of my future inheritance so that I could pay off part of the mortgage & make it possible to continue to afford to stay in the house. The bank would want the repayment out of my account. Would receiving this money stop my benefits anyway? Would paying off part of the mortgage with the money count as disposal of assets (this stopping my benefits), despite the fact it’s in order to keep a home for the children. The mortgage would be at a similar level to rent for a property in my area. It seems silly to have to pay moving costs to end up in a rented property and uproot the children at the same time.

Sorry, long winded but basically would receiving part of my inheritance early mean I’m no longer eligible for UC?

Thank you.

[Deleted User]

Get dad to pay the mortgage directly. You then don't have the money.

Logan112

I’ve been informed by someone who has spent most of their career in banks & finance that the bank will want the payment out of my account Not sure what purpose it serves really.

calcotti

As shel suggests get father to direct to mortgage lender if possible - it avoids having to produce lots of paperwork for DWP. However it is worth noting that paying off debt including mortgage is not deprivation of capital under UC.

Logan112

As I stated above I’ve been informed that the bank will expect payment from my account (I will try to double check this).

I wasn’t sure if mortgages were treated differently from other debts. Thank you.

huckster

Logan112 wrote: »

I’ve been informed by someone who has spent most of their career in banks & finance that the bank will want the payment out of my account Not sure what purpose it serves really.

Money laundering prevention measure. But if your father can be indentified and source of money from his bank can be identified, then it is not a problem.

Speak to mortgage company about what they will require, if your Father pays them directly.

Logan112

Thank you huckster.

Rubyroobs

Has your dad considered the implications of giving away large sums of money should anything happen to him in the future ?

evenasus

Logan112 wrote: »

I’ve been informed by someone who has spent most of their career in banks & finance that the bank will want the payment out of my account Not sure what purpose it serves really.

Several years ago I paid off my son's mortgage with Halifax. They accepted a cheque from my account.

calcotti

Logan112 wrote: »

I wasn’t sure if mortgages were treated differently from other debts. Thank you.

In my opinion mortgage is debt and paying off debt is expressly permitted under UC legislation. In fairness I should say that there are other posters on this forum who do not agree with this interpretation.

huckster

calcotti wrote: »

In my opinion mortgage is debt and paying off debt is expressly permitted under UC legislation. In fairness I should say that there are other posters on this forum who do not agree with this interpretation.

I agree with your view on this calcotti. It is securing the home and I have not come across any case, where a Decision Maker has decided that it is somehow an adverse issue for DWP. Arguably makes it less likely home is repossessed and therefore Housing for rent would be required. Also any eligible support for mortgage (SMI) interest loan would be reduced.

Caveat: each case on its own merits, as it will depend on individual circumstances.