Mortgage on benefit

Woodcarver_2

Hi my wife and I are both on benefit.. I had my own business, bought a house then became ill. Our mortgage was on an endowment policy and the interest was paid to the building society direct from the DSS. Then we moved to a new address on health grounds into a bungalow because of our mobility needs. The bungalow mortgage is made up by continuing our existing endowment mortgage and a further capital repayment mortgage. We are having to pay £324 per month, while the DSS stop a further £150 a month which they pay to the building society for the interest; this has been the case for over three years. We are really struggling to make ends meet are we been charged correctly, should the DSS be paying the little they pay and should we be having to pay the £324 per month? We are both on DLA, me middle personal care and higher mobility, my wife gets both at the higher rate, we also receive Income suppot and I get invalidity benefit.. both our health and mobility is deteriating. When we asked at the DSS office we were told that they could look at our case again, but this could mean that we could end up worse off. So we were put off questioning things further, but now we really are struggling! Any advice please.

hotblu

Hello,

What about renting a bungalow and then claiming full HB and CT?

Oldernotwiser

Could you not change all of your mortgage to interest only? Many lenders will allow borrowers to repay interest only until the borrowers die or the property is sold. I don't know of any way public funds could be used to repay capital or fund an endowment as this would be money that would eventually be paid out to you.

Woodcarver_2

I'm not looking for public funds to buy my house! I need someone to check to see "IF" What is happening is right!?!?!?

I have always been employed/selfemployed, always been up to date on my taxes and NI contributions.

When I asked if they "DSS" would check the payment, to see "IF" We should be paying what we pay and the way it is paid!? The answer was almost like a threat "We can.. But, "IF" we do it may? Make you worse off!".

chopperharris

dss will only pay interest

its up to you whether you pay an endowment mortage on top of that.But keep paying and if one of you dies then im sure the insurance will pay off the remainder.

or

sellup , downsize to council adapted bungalow and you will get rent and coucil tax beneift , buy a nice on site caravan ....sure youll never own the home on dla but if your on life long dla etc then surely its all about quality of life?

BARGAINHUNTER!

Woodcarver wrote: »

I'm not looking for public funds to buy my house! I need someone to check to see "IF" What is happening is right!?!?!?

I have always been employed/selfemployed, always been up to date on my taxes and NI contributions.

When I asked if they "DSS" would check the payment, to see "IF" We should be paying what we pay and the way it is paid!? The answer was almost like a threat "We can.. But, "IF" we do it may? Make you worse off!".

You say you are not looking for public funds to pay for your house, which is why the interest on the loan is the only amount that is being paid for you. It is up to you to pay the capital! If some of this was being paid for you as well, then public funds would be being used to pay for your house! As someone else has said, have you thought about switching to interest only, that way you would free up a lot of your money each month, but you do need to think very carefully about the implications of this - ie you would not be paying off any capital.

dmg24

Your text does not give enough information to give any definitive advice.

As chopperharris has said, the DWP will only pay the interest on the mortgage, and they may not pay anything on the additional monies borrowed (depending on if they believed that you had to move or not).

Are they paying all the interest (up to £100K)?