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Original poster

Can I do this and claim benefits or not?

118 replies

Yapppp · 31/10/2025 20:14

I am a massive worrier. I love my job and don’t want to not work but I overthink everything and like to have a plan in an emergency.

I have a decent amount of savings, enough to pay off half my mortgage. I’m keeping it investments for now as well as overpaying my mortgage monthly. If I were to lose my job, could I pay off the chunk of my mortgage with my savings and then claim benefits while I looked for another job? It almost seems pointless saving if I don’t get the same access to benefits as the next person should my job go wrong and I need time to find another. But I also don’t want to pay it off now when I’m working. Does anyone know as it seems confusing online when I google it!

OP posts:
Sillysoggyspaniel · 31/10/2025 20:15

God I hope not.

Jellybunny56 · 31/10/2025 20:16

No, you can’t randomly decide to pay off a huge chunk of your mortgage coincidentally the day you lose your job and then claim benefits. That’s a nice easy open & closed deprivation of assets case for you, not a chance.

Godsprincess · 31/10/2025 20:18

I think you might be penalized if you use your savings to clear part of your mortgage just to be able to claim benefits. It’s called deprevation of capital.

Moveoverdarlin · 31/10/2025 20:19

You won’t have access to the same benefits as other people because you simply don’t NEED them. You can’t claim benefits whilst sat in a home you own outright.

ItsAWonderfulLifeforMe · 31/10/2025 20:20

I think you would be better off looking at redundancy insurance (approx £60 a month) that would cover your bills if you lost your job and reduce your anxiety. Surely paying off your mortgage would be seen as a deprivation of assets. There is probably a cap on how much you can pay off too without a penalty unless you are on a standard variable rate

KickHimInTheCrotch · 31/10/2025 20:20

Are you at risk of losing your job or unlikely to be able to find a new one during any notice period?

Tamfs · 31/10/2025 20:21

Are we being invaded by benefits bashing bots tonight?

No, of course you can't do this. This would be playing the system.

amber763 · 31/10/2025 20:21

Your savings are your plan for an emergency. Of course you can't just use them all towards your mortgage so you can claim benefits. You know benefits are hardly anything right? Especially if you own a home.

XenoBitch · 31/10/2025 20:26

Moveoverdarlin · 31/10/2025 20:19

You won’t have access to the same benefits as other people because you simply don’t NEED them. You can’t claim benefits whilst sat in a home you own outright.

Yes you can.
You can't claim benefits if you own a home you don't live in though.

gamerchick · 31/10/2025 20:26

Highly unlikely.

Why don't you just do it now and start saving again?

MustTryHarderAndHarder · 31/10/2025 20:27

I think you might be able to do that because it would save the State money as they would not have to pay you housing benefit and also they wouldn't have to house you if you couldn't keep up your mortgage payments and you lost your house.

hazelnutvanillalatte · 31/10/2025 20:29

Moveoverdarlin · 31/10/2025 20:19

You won’t have access to the same benefits as other people because you simply don’t NEED them. You can’t claim benefits whilst sat in a home you own outright.

Yes you can. What would the alternative be?

MustTryHarderAndHarder · 31/10/2025 20:29

Tamfs · 31/10/2025 20:21

Are we being invaded by benefits bashing bots tonight?

No, of course you can't do this. This would be playing the system.

No it would not be playing the system because you are allowed to pay off debts.

If you pay off your mortgage then the state does not have to give you housing benefit and also will not have to house you if you become homeless.

MustTryHarderAndHarder · 31/10/2025 20:30

Godsprincess · 31/10/2025 20:18

I think you might be penalized if you use your savings to clear part of your mortgage just to be able to claim benefits. It’s called deprevation of capital.

I really don't think that it is.

You are allowed to pay off debts.

EuroTour · 31/10/2025 20:32

Yes you can. You won't be penalised for paying off debts. It's not deprivation of assets.

Buxusmortus · 31/10/2025 20:40

Jellybunny56 · 31/10/2025 20:16

No, you can’t randomly decide to pay off a huge chunk of your mortgage coincidentally the day you lose your job and then claim benefits. That’s a nice easy open & closed deprivation of assets case for you, not a chance.

Yes you can actually.

The government benefits website specifically says that using savings to pay off a debt is not deprivation of capital.

Jackiepumpkinhead · 31/10/2025 20:44

Is this a joke? If you unfortunately lose your job, you then use savings to pay your mortgage until you get a new job. I thought that was the point of savings, for a ‘rainy day’?

WiddlinDiddlin · 31/10/2025 20:44

Of course you can pay off documented debts like that.

What you can't do is bob out and take out thousands in cash and pay off a bunch of personal debts you've no paperwork for, or suddenly need to buy 17 TV's... etc etc.

And of course you can own your own home AND claim benefits - otherwise I am sitting in a figment of my own imagination right now having just done our monthly UC expenses form.

ToKittyornottoKitty · 31/10/2025 20:45

You should probably check if it’d be worth it first. Do you have kids? If not you’d likely only get a very tiny amount and you’d be forced to search for a job and prove it, attend job centre meetings etc and it probably won’t be enough to live on anyway.

Catsknowbest · 31/10/2025 20:47

Moveoverdarlin · 31/10/2025 20:19

You won’t have access to the same benefits as other people because you simply don’t NEED them. You can’t claim benefits whilst sat in a home you own outright.

Incorrect. As long as it is your only home, you can.

Greenwitchart · 31/10/2025 20:49

Yes you can.

When/if you claim benefits you will be asked if you have any savings because there is a limit, I think it is £16,000. If you have more than that in savings you won't be able to claim.

But you are perfectly entitled to pay off some of your mortgage, which is a debt, to reduce your monthly outgoings. Nothing to do with ''deprivation of assets''.

Some of the replies on this thread are batshit...

Doggielovecharlotte · 31/10/2025 20:50

Paying off your own mortgage is not deprivation of assets - you are settling a debt

of course you’d be entitled to benefits

deprivation of assets is stuff like gifting money to avoid having money in the bank

CryMyEyesViolet · 31/10/2025 20:51

Why do you bother working if you just want benefits?

I work and save so I hopefully don’t ever have to rely on benefits, and if I lose my job I can maintain my nice life until I get a new job. I can’t think of a worse plan than getting rid of my liquid capital if I lost my income…

Catsknowbest · 31/10/2025 20:53

Technically yes. Morally very questionable. You will clear a huge chunk of debt from a future realisable asset then claim MT benefits. That is, no matter how you dress it up, playing the system.

Buxusmortus · 31/10/2025 20:56

Catsknowbest · 31/10/2025 20:53

Technically yes. Morally very questionable. You will clear a huge chunk of debt from a future realisable asset then claim MT benefits. That is, no matter how you dress it up, playing the system.

Edited

But on the gov website it specifically says that you can clear debts with savings and it would not be deprivation of capital, so why are you saying it's ambiguous? Is the website wrong?