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Income based JSA affected by Offset savings
Ryco
Posts: 12 Forumite
Hi,
If after 6 months on contrubution based JSA I understand I move to a income based means tested JSA.
I have some savings over 16k in a offset mortgage but it's not really savings as it is reducing by inrtest and thus my debt.
Would I not get the income based JSA becuase of that? Do they look at offeset savings in that way?
If after 6 months on contrubution based JSA I understand I move to a income based means tested JSA.
I have some savings over 16k in a offset mortgage but it's not really savings as it is reducing by inrtest and thus my debt.
Would I not get the income based JSA becuase of that? Do they look at offeset savings in that way?
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Comments
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My guess is that Offset saving will still be classified as Savings, because at the end of the day it is just that..The fact that you use it to reduce your mortgage doesnt matter. Somebody please correct me if I am wrong.0
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It may depend on how your lender holds your offset savings. If they are held in an account separate to your mortgage then they look suspiciously like savings. If they just mean that your mortgage account has a lower negative balance then it would be harder for them to be classed as pure savings.
Bit of a grey area.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
I wouldn't have thought they would be classified as savings, because HMRC doesn't view them as taxable, whereas money in a saving's account usually is.
Interesting question though. I've wondered about this too, but never got a straight answer.I learned that courage was not the absence of fear, but the triumph over it. The brave man is not he who does not feel afraid, but he who conquers that fear.0 -
Caution,
It might be worth moving the funds and getting to JSA IB earlier ...
There are a number of gotchas if you have not been on JSA IB long enough.
Don't wait to the six month point and then switch .. I did and I got burnt ..Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam No idea why you removed it as it was something I learnt from this site - bizarre0
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