Universal Credit & Savings

samsim821

Hi All,
Just after some advice really. 
Say you've got 10k revolving credit, credit card, a loan, car finance and you have 15k in savings.

Do this mean you only have 5k in savings from the Universal credit view point?

Thanks Sam 

[Deleted User]

 No, it means you have £15k if you have that! 

Your debt is ignored

samsim821

Ok thanks. 

whizzywoo

_shel said:

 No, it means you have £15k if you have that! 

Your debt is ignored

Unless you use the £15,000 to physically pay off the debt.  Not just offset one against the other on paper.

[Deleted User]

 Yes forgot that, paying debt down is allowed and won't be seen as deprivation for universal credit 

calcotti

megw said:

They are talking about removing the savings cap soon anyway

Where did you hear that?

kremlinbot

megw said:

They are talking about removing the savings cap soon anyway

If somebody who owns a house can claim universal credit, but somebody saving for house cannot - it doesn't seem right to ask the person saving to use those savings to pay for rent, but cover the mortgage of a person who has their wealth in the house equity, but fewer cash savings.

I suppose this could be a loop hole, but it would make sense to close it.

whizzywoo

kremlinbot said:

megw said:

They are talking about removing the savings cap soon anyway

If somebody who owns a house can claim universal credit, but somebody saving for house cannot - it doesn't seem right to ask the person saving to use those savings to pay for rent, but cover the mortgage of a person who has their wealth in the house equity, but fewer cash savings.

I suppose this could be a loop hole, but it would make sense to close it.

Universal credit does not give anything towards your mortgage costs for the 1st 9 or it maybe 10 months of claiming and even then I think it might only be a loan. Not entirely sure of the regulations.
People who are renting get housing benefit towards the cost of renting.

kremlinbot

whizzywoo said:

Universal credit does not give anything towards your mortgage costs for the 1st 9 or it maybe 10 months of claiming and even then I think it might only be a loan. Not entirely sure of the regulations.
People who are renting get housing benefit towards the cost of renting.

Oh right, do mortgage costs not be taken in to account for someone applying for universal credit though?

calcotti

whizzywoo said: Universal credit does not give anything towards your mortgage costs for the 1st 9 or it maybe 10 months of claiming and even then I think it might only be a loan. Not entirely sure of the regulations.

People who are renting get housing benefit towards the cost of renting.

Support for Mortgage Interest is indeed only available after 9 months and is a loan with interest charged. It can also only be claimed if there is no earned income.

People who are renting get help through Universal Credit (or Housing benefit if their claim predates UC).

whizzywoo

This is the Universal credit info about mortgages

"Help with mortgage payments or loans is provided as a loan. You will only be asked to pay back this loan if the property it was claimed for is sold or transferred to someone else. You can choose to pay the loan back early if you wish.

The Department for Work and Pensions will check your evidence before paying Universal Credit housing costs. Any delays in providing this evidence may mean delays in your Universal Credit housing costs being paid.

The amount you receive will depend on the amount of your outstanding mortgage or loans. It is calculated using a standard interest rate, and it is usually paid straight to the bank, building society or lender. You will be notified of your Universal Credit housing costs amount and payments through your online account.

You can only get help with mortgage payments if you have been claiming Universal Credit for 39 weeks or more, with no breaks or earned income in that time. Earned income can include earnings from paid work or, for example, statutory sick pay or tax rebates.

If you have moved to Universal Credit within one month of another benefit ending, time spent on the first benefit counts towards the 39 weeks.

It is important to understand that you will not be eligible for help with mortgage payments on your own home if you receive earned income. If you start receiving earned income whilst you are getting help with mortgage payments, this help will stop.

If you have a break in your claim or receive earned income you will need to claim Universal Credit for a further 39 weeks with no breaks or earned income before you can receive help with mortgage payments."

You read it here

https://www.understandinguniversalcredit.gov.uk/new-to-universal-credit/housing/

Not easy to get and has to be repaid.