Mortgage Buyout & Universal Credit

Steelysteel

So me and my ex have a mortgage together for last 10 years she moved out and we separated 2 weeks after moving in, she has never paid anything towards the mortgage or anything

Yes I know legally she is entitled to half the house regardless whether she has ever paid anything towards it but she doesn't want that

She has always said she still is as I finally look into removing her that she just wants the £13k she put towards deposit

My issue is if I get a mortgage and the additional 13k she wants the 13k going into my bank to pay her with effect my UC which I can't afford it to as I there's me and our child living here and I do need that UC top-up

Is there anyway I can do this and the money she wants paid directly to her so it doesn't go into my bank and treated as mine?

Thanks

Mark

peteuk

I dont think you can, this would be something you discuss with your mortgage lender and solicitor.

As for it landing into your account, technically you report your capital at the end of your AP. So if it goes into your account on the 10th day after your UC payment and then leaves the following day, then it will have no impact on your UC.

Should you declare it in this instance? I would say yes, but ensure there’s documents to say why £13K has entered your account and then been passed to someone else. Some would say different, but if in two months time UC want to check your accounts, youve documentation at the time of the transactions given the why and how…

Steelysteel

https://forums.moneysavingexpert.com/discussion/comment/81891532#Comment_81891532

Thankyou I'll Speak to the mortgage broker the other thing is if the money came In & went straight out but I reported it would they completely disregard it as technically I'm using it to buy a house and any payments to a mortgage and debt are usually disregarded

itsthelittlethings

I thought this was incorrect. I have read on here that you can get a disregard on the proceeds of a house sale if you’re going to buy another house. However I have also heard that DWP will not confirm things only decide after the fact. Can’t you set up some kind of chain like any normal house buyer?

Steelysteel

https://forums.moneysavingexpert.com/discussion/comment/81891544#Comment_81891544

Im not technically buying a house though just paying 13k for my ex's share of my current house

itsthelittlethings

As long as it goes out before the end of the assessment period you’ll be fine.

sammyjammy

If her name is being removed just make it part of that transaction with solicitor and make a direct funds transfer from them.

peb

It will be a transfer of equity. A solicitor will be involved so the funds will not be in your account

peteuk

https://forums.moneysavingexpert.com/discussion/comment/81891544#Comment_81891544

If you sell a property, you get a 6 months disregard to then purchase a new one. This can be extended if there is proof of a potential purchase.

In this case the OP, is not selling a house, they are taking an extra/extending a mortgage to buy out a part owner.

Robbie64

Whilst it would be better for the money to not touch the personal bank account of the OP, if it does go into and out of the account in a very short period of time then I can't see it affecting the UC claim. Keep a paper trail and inform UC of what has happened.

One thing i would try to avoid though, is having the money in your account at the end of an assessment period as you would have to declare the money at that point rather than after the fact (ie after the money has left your account).