Closing UC claim

lloyd7

Hi, I have managed to re mortgage and as this has now gone through how do I close my UC claim? Do I just put a note on the portal? 

calcotti

Put a note in your journal or ring them would be the way to tell them. However not clear why remortgaging makes you want to close your UC claim. You don't get help with mortgage costs included in your UC payments.
Are you getting Support for Mortgage Interest? https://www.citizensadvice.org.uk/benefits/support-for-mortgage-interest-smi/support-for-mortgage-interest-smi/check-if-a-change-affects-your-smi/

lloyd7

calcotti said:

Put a note in your journal or ring them would be the way to tell them. However not clear why remortgaging makes you want to close your UC claim. You don't get help with mortgage costs included in your UC payments.
Are you getting Support for Mortgage Interest? https://www.citizensadvice.org.uk/benefits/support-for-mortgage-interest-smi/support-for-mortgage-interest-smi/check-if-a-change-affects-your-smi/

I had to re mortgage as the property needs the electric to be updated and also external building works. I am assuming I have to close my claim as I will have over the £16,000 savings allowance and UC won’t allow it even though it’s for building works? 

calcotti

lloyd7 said:

calcotti said:

Put a note in your journal or ring them would be the way to tell them. However not clear why remortgaging makes you want to close your UC claim. You don't get help with mortgage costs included in your UC payments.
Are you getting Support for Mortgage Interest? https://www.citizensadvice.org.uk/benefits/support-for-mortgage-interest-smi/support-for-mortgage-interest-smi/check-if-a-change-affects-your-smi/

I had to re mortgage as the property needs the electric to be updated and also external building works. I am assuming I have to close my claim as I will have over the £16,000 savings allowance and UC won’t allow it even though it’s for building works? 

When you said you had remortgaged I assumed you just meant that you had changed your mortgage lender. You are correct that normally if you have more than £16,000 of capital you are no longer eligible for UC. You would not be entitled to receive UC from the start of the assessment period in which you went over the threshold. This would of course mean that some of the money would effectively be 'lost' on living expenses. As soon as your capital dropped below £16,000 you would be able to reclaim.

However you may be able to take advantage of an exception to this for money the repairs are essential repairs
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/899061/admh2.pdf

Capital disregarded for up to 6 months
Amount for repairs
Where, in the past 6 months, a person has acquired a sum of money by way of a loan, grant or otherwise which is to be used for making essential repairs or alterations to premises occupied or intended to be occupied as the person’s home, that amount can be disregarded from the calculation of that person’s capital but only where it is used for that purpose.

You would still need to declare it and explain what it is to be used for and request a disregard. I don't think 'essential repairs' is defined but obviously it isn't going to be cosmetic makeovers.

lloyd7

calcotti said:

lloyd7 said:

calcotti said:

Put a note in your journal or ring them would be the way to tell them. However not clear why remortgaging makes you want to close your UC claim. You don't get help with mortgage costs included in your UC payments.
Are you getting Support for Mortgage Interest? https://www.citizensadvice.org.uk/benefits/support-for-mortgage-interest-smi/support-for-mortgage-interest-smi/check-if-a-change-affects-your-smi/

I had to re mortgage as the property needs the electric to be updated and also external building works. I am assuming I have to close my claim as I will have over the £16,000 savings allowance and UC won’t allow it even though it’s for building works? 

When you said you had remortgaged I assumed you just meant that you had changed your mortgage lender. You are correct that normally if you have more than £16,000 of capital you are no longer eligible for UC. You would not be entitled to receive UC from the start of the assessment period in which you went over the threshold. This would of course mean that some of the money would effectively be 'lost' on living expenses. As soon as your capital dropped below £16,000 you would be able to reclaim.

However you may be able to take advantage of an exception to this for money the repairs are essential repairs
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/899061/admh2.pdf

Capital disregarded for up to 6 months
Amount for repairs
Where, in the past 6 months, a person has acquired a sum of money by way of a loan, grant or otherwise which is to be used for making essential repairs or alterations to premises occupied or intended to be occupied as the person’s home, that amount can be disregarded from the calculation of that person’s capital but only where it is used for that purpose.

You would still need to declare it and explain what it is to be used for and request a disregard. I don't think 'essential repairs' is defined but obviously it isn't going to be cosmetic makeovers.

Thank you, when Covid-19 happened we had already started building works and obviously they need to be finished. The mortgage application took forever because of lockdown and people working from home. My assessment period ends on the 27th each month and the money have just come through so I have to declare it for this period. 

I think my claim will come to an end now anyway because of owning a second property? It was disregarded for six months and I don’t think they will extend it? 

Is it best to speak to someone on the phone? 

calcotti

lloyd7 said: Thank you, when Covid-19 happened we had already started building works and obviously they need to be finished. The mortgage application took forever because of lockdown and people working from home. My assessment period ends on the 27th each month and the money have just come through so I have to declare it for this period. 

I think my claim will come to an end now anyway because of owning a second property? It was disregarded for six months and I don’t think they will extend it? 

Is it best to speak to someone on the phone? 

Re the second property that will depend on the reason for the disregard. Did they give you a disregard reason at the time? Disregards can be extended for more than six months if DWP consider it reasonable to do so.. if it was disregarded because it was treated as having no value due to property market shutting down the. The disregard would only continue if you are now trying to sell it. If not the. You are probably right and entitlement to UC will end. In the circumstances it may be better to speak to someone - although there is no guarantee that they will be fully informed on such matters.