Affect on UC if parent clears mortgage r claimant?

yelf

Hi. What is the situation on UC if a claimants dad pays off their mortgage for them? I'm assuming it would be best if it was paid directly to the lender as opposed to the daughter to pay?
Thank you 

Spoonie_Turtle

Yes, best if the money can go straight to pay the mortgage off and not hit her bank account.

If that's not possible, if she receives the money and pays her mortgage off within the same assessment period that would be okay.  She should tell them about it after it's happened though, so that when it's flagged up that she had (presumably) a large amount of money in her account for a short time, they already know what it was and where it went and don't have to investigate and stop her claim while they do so.

rosewalk

Yes it would be better to be paid directly to the lender. I would avoid giving the money to the daughter to pay the lender as depending on the amount of money involved, when the daughter receives the money and when she pays the lender this can lead to all kinds of complications. Even if you keep within the capital rules of Universal Credit so that money is received and paid out within an Assessment Period there can be issues as UC staff don't always understand their own rules. I speak from a recent experience where I had to supply them with their own regulations!

peteuk

Double check the mortgage you may get stung with overpayment fees.