Universal credit and buying a home?

Mamai

universal 

[Deleted User]

Mamai said:

My relationship broke down and as a result we have sold the family home as I could not afford the mortgage on my own. I began to receive UC at this stage.

The house has sold and I have received just over £16k from the sale. I am sale agreed on a smaller house and am awaiting my mortgage offer- this 16k will all go towards the deposit (I’m in NI so this will cover it). I have no other savings apart from this.

I am aware that any savings above 6k must be declared and any savings over 16k mean you aren’t entitled to claim UC.

I have read that savings intended to purchase a home to live in can be disregarded for 6 months and not included in my benefits calculation as long as I can show I am using it to purchase a home.

Has anyone any experience of this? I’m starting to panic that I will lose my UC which I do need for me and my children but obviously in 2/3 months I will no longer have those savings and didn’t have them before.

Why are you panicking that you'll lose your UC?  As you've already said, savings intended to purchase a home to live in are disregarded for 6 months and you're using your £16k to buy a home.

Angela_D_3

you’ll be fine,  it’s disregarded 

greatcrested

How much will the mortgage repayments be and will you be able to meet them... and still live?

greatcrested

Mamai said:

Of course I will be able to repay them or I wouldn’t be buying a house?

Not sure I understand the question or how I can answer it.

Though there's no 'of course' on this forum - we get all sorts here and it's always advisable to check!

45002

Mamai said:

Oh don’t be so snooty. I’m not worried about paying my mortgage and I am worried about losing my UC for a ‘savings’ that I won’t have in a month or 2.

Have a read https://www.moneyadviceservice.org.uk/en/articles/how-do-savings-and-lump-sum-pay-outs-affect-benefits

https://www.moneyadviceservice.org.uk/en/articles/how-do-savings-and-lump-sum-pay-outs-affect-benefits#which-benefits-are-affected-by-savings

FreeBear

From the DWP Decision Maker's Manual, page 103 (Vol 9 Amendment 29 February 2019)

Money from the sale of premises which were lived in as the home
The law
52535
Money from the sale of premises which were lived in as the home is disregarded to give a person time to buy other premises if the person is going to
1. use the money to buy premises and
2. live in those premises as the home.
The period of disregard is 26 weeks or longer if it is reasonable from the date of sale 1 .
1 ESA Regs, Sch 9, para 3

FreeBear

A letter from your solicitor or estate agent should be sufficient evidence that you are actively looking at buying a property. The rules allow the DWP to extend the 26 week disregard as the house buying process can take time.