Mortgage Protection & Benefits

taylor123

Hi... Newbie here.. just some advice required please.

Have been made redundant.(single parent) but luckly i have mortgage protection. But i am in a part rent part buy. Obviously i could only get cover for my mortgage part and not for the rental part of it.. My questions are..

Am i eligible for the rent side to be paid by housing benefit? and my council Tax? also can i claim tax credits, or would i claim for jobseekers? i have 1 son who is 18 in november in full time further education.Also any money they may give me do they take off the amount i would get from my mortgage protection. (which would obviousy pay my mortgage part) will they penalise me. I hope this makes sense, any help greatly received

daveyboy998

As a single parent you should already be receiving tax credits... if so you just need to tell Inland Revenue about your change of income. If you dont claim Tax Credits then yes you will now need to make a claim. You can Jobseekers Allowance if you want support in finding work, or if you prefer you could claim Income Support as a lone parent.

You can claim Council Tax Benefit but it depends on your income (including tax credits) on how much you would get. If you are awarded Income Support you would get all your Council Tax paid.

With Housing Benefit is depends if you have shared-ownership or co-ownership. HB can be paid for shared ownership only.

The money the insurance pays towards your mortgage will be ignored.

One last tip - claim benefit as soon as you receive you final wages payment - if this covers you for a future period (even wages) it will be ignored provided your claim after it has been paid to you :-)

Good luck!

Kazzajr

Lone parents can now only claim income support if their youngest child is 12 or under otherwise they have to claim jobseekers allowance.

[Deleted User]

You would not be entitled to Tax Credits if your son is studying at a level above A-levels.
If he is studying at A-level or below and spends at least 12 hours in college/school per week then you would qualify for CTC (approx £50 p/w).

MRS_TO_BE_2

You will still have to provide mortgage protection policy details to JSA as there is a calculation that needs to be done.

Don't delay in making claim to JSA as claims aren't normally backdating except in exceptional circumstances.

taylor123

thank you for you for your replies.. i was getting working tax credit, but not child tax credit as they said my earnings were to high.. but as not working at all, am i right in thinking that it will change to just child tax credits? once i have informed them. Also my son is full time at college over 20 hrs a week he is not doing A levels. also as my son is 17 i can only claim JSA. my property is a shared ownership not co-ownership. Is it my local council i apply to for HB on the rent side? sorry lots of questions, but thank you all once again.. i have never claimed any sort of benefit before, except the WFTC. all totally new to me. hopefully new job will be found sooooooon, fingers crossed.

MRS_TO_BE_2

Yes speak to your local council re HB who pay the rent element.

Tax credits will prob revert to CTC only,.

Good luck