Remortgage money

missie1990

Hi if I remortgage a property I inherited will It affect my tax credits I want to use the money to buy a property to live in as the property I inherited is in Wales and I live in England, we rent that property out and HMRC are aware of this but was wondering where we'd stand with the money we'd get if we remortgage the property we wouldn't be putting it in a trust or savings account etc

marcia_

missie1990 said:

Hi if I remortgage a property I inherited will It affect my tax credits I want to use the money to buy a property to live in as the property I inherited is in Wales and I live in England, we rent that property out and HMRC are aware of this but was wondering where we'd stand with the money we'd get if we remortgage the property we wouldn't be putting it in a trust or savings account etc

 Tax credits don't take in to account savings. Only means tested benefits do such as Universal Credit 

missie1990

marcia_ said:

missie1990 said:

Hi if I remortgage a property I inherited will It affect my tax credits I want to use the money to buy a property to live in as the property I inherited is in Wales and I live in England, we rent that property out and HMRC are aware of this but was wondering where we'd stand with the money we'd get if we remortgage the property we wouldn't be putting it in a trust or savings account etc

 Tax credits don't take in to account savings. Only means tested benefits do such as Universal Credit 

Hi I only get tax credits, so I don't need to tell them about it ? 
Thanks 

poppy12345

missie1990 said:

marcia_ said:

missie1990 said:

Hi if I remortgage a property I inherited will It affect my tax credits I want to use the money to buy a property to live in as the property I inherited is in Wales and I live in England, we rent that property out and HMRC are aware of this but was wondering where we'd stand with the money we'd get if we remortgage the property we wouldn't be putting it in a trust or savings account etc

 Tax credits don't take in to account savings. Only means tested benefits do such as Universal Credit 

Hi I only get tax credits, so I don't need to tell them about it ? 
Thanks 

No, as advised, savings/capital do not affect tax credits. Only interest of more than £300 affects it.

strawb_shortcake

As an aside wouldn't the second property affect you once the migration to UC happens?

missie1990

annabanana82 said:

As an aside wouldn't the second property affect you once the migration to UC happens?

I don't know tbh as what I've found out about UC is the house I'm living in which is the one I'd buy with remortgage money wouldn't affect anything but declaring the rental income from the house I rent out would probably deduct something from a future UC entitlement .    

That's what I was told when I asked before. I don't know when migration will occur.

    

Icequeen1

missie1990 said:

annabanana82 said:

As an aside wouldn't the second property affect you once the migration to UC happens?

I don't know tbh as what I've found out about UC is the house I'm living in which is the one I'd buy with remortgage money wouldn't affect anything but declaring the rental income from the house I rent out would probably deduct something from a future UC entitlement .    

That's what I was told when I asked before. I don't know when migration will occur.

    

That's not correct. Tax credits take into account the rental income but UC looks at the value of the property, the rental income is ignored. If the value is more than 16k you won't be entitled to UC. If you are migrated across from tax credits to UC, capital above 16k will be disregarded for 12 months only. 

poppy12345

missie1990 said:

annabanana82 said:

As an aside wouldn't the second property affect you once the migration to UC happens?

  I don't know when migration will occur.

    

Anytime from now up until the end of 2024 (wheher they achieve that is another matter)