Technical question - UC AP

Altior

I'm writing this here, as it's perhaps more logical than starting yet another thread on the benefits board! I'm sure some, if not all readers are more than irritated by my oscillation by now. So tl;dr, I've changed my mind again…

One might say this is a complete volte face this time, however now there is definitely no going back.

It might be different for other people, but I've decided my overriding priority is my financial security (not maximising benefits). Therefore I have considered, what am I actually trying to achieve here.

To this end, I have abandoned 'targeting' UC qualification. Instead, it will happen organically. If I fall below £16K capital, I will apply for UC. If I fall below £6K, I will apply for CTR. Obviously decalaring changes of capital as and when required. As the existing legislation stands. I concede that if I am for example on £7K capital then it might be logical to expedite falling below £6K for CTR, but certainly I am no longer treating it as an objective.

To this end I will be holding on to my capital for as long as possible, taking BT and MT opportunities as they arise, as before. I will be maximising my pension contributions and maximising my fee free mortgage overpayments. I will be taking the best interest yielding opportunities and bonuses as they emerge, but I won't be opening any more long term products where I cannot crack the capital due to the terms if needed, and certainly not dozens of accounts, ie a more simplified portfolio (even if it's marginally sub optimal).

I cannot say exactly how the timeline fits long term, but I won't have any worries about DoC, or reviews, or substantiating my capital. If I want to spend some money I won't need to concern myself with how other people might interpret it, and certainly not defend my transactions to a stranger (possibly until I apply for UC!). I appreciate it's a long long way off, but those cash bonds that are locked (£3K) until July 2028 mean that I would need to get below effective £3K capital and stay below it for 2 years. Simply needing a new boiler for example in that time, could wipe it out.

The fixed rate on my mortgage ends in Sept 2028, almost certainly the new fixed rate will be significantly higher. That's potentially around the time it might be worth considering SMI (if eligible). For now, I will simply pay the mortgage as normal (payments are reducing naturally due to overpayments).

I do appreciate that others might take a different approach, but this is the one that works for my foibles.

Altior

I do once again wish to acknowledge all of the input, knowledge and experience that others have contributed to my scenario, even that of the more challenging nature, as sometimes that is of the most benefit! It's certainly not been wasted, and I feel I now have the requisite knowledge to go through the processes as they arise.

huckster

Seems like a more rational approach.

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/comment/81940603#Comment_81940603

That sounds eminently sensible and, hopefully, the discussions around the topic in the forum (and I am sure you had discussions elsewhere) helped to provide clarity and method for the next steps. Good luck. 😊