Impact of offset mortgage on calculating savings balance for a benefits claim

SarahMaya

I have recently been made redundant. When using a benefits calculator to look at what I might be entitled to until I find another job, the savings threshold of £16k impacts whether I qualify for any benefits beyond JSA and child benefit. I have an offset mortgage and hold the majority of my savings in the offset account. By being deposited here, the savings are effectively reducing my mortgage balance. I haven't used them to formally repay part of my mortgage as it seems preferable to have the flexibility to access them should there be an unexpected cost arising such as a major roof repair etc and also it avoids incurring early repayment fees on the loan. When calculating my savings balance for benefits purposes, can I exclude the savings in the offset account given they partially offset my mortgage liability? 

getmore4less

Savings are savings.

Barclays you can restructure to pay down the mortgage and create an overdraft facility which does not count.

Masomnia

This is more of mortgage question than an employment one so you're probably better asking there.

Since you can access the savings I suspect they will count towards the £16k, but can't say for sure.

steampowered

What interest rate are you paying on your mortgage?

It might be preferable to use a chunk of this money to pay down the mortgage anyway, perhaps to remortgage onto a cheaper rate. Offset mortgages are more flexible but they do often charge a higher interest rate.