private rent and single mum

[pinkkoala]

does anybody have erxperience of being a single mum and renting privately, do you get any help with rent or council tax, and what other things do you get help with, we are currently selling the joint house, i can't afford to keep it on my wages and won't be able to get another mortage so thought about renting, i only work part time and earn £450ish a month so not even sure if i could afford to private rent, i don'tget tax credits at the mo due to husbands salary.

Well, if you're becoming a single parent then your husband's income is irrelevant, so you should be eligible for tax credits, and probably some housing benefit. I don't know much about it-sure someone will be along soon who does, but I would go to the CAB to have a chat about benefit entitlement. Take wage slips, NI no and child benefit reference number with you too.

If you have equity therefore will have more than 16k savings I do not think you would get much, but I maybe wrong and it may apply only to IS
Would you be able to manage if you stay put and apply for HB on your mortgage? They pay the interests which is really quite a big chunk out of your monthly installment

I had this problem. It drove me nuts.

Got no housing/council tax benefit, even though I was divorcing and ex was in the old house while it was being sold. Even if you're not living there, you're officially an owner and have equity of over £16k. I lived on air and borrowed from friends.

But there is some good news . Once you're no longer living with ex, you will get tax credits. I checked and double checked this - even once you've sold the house, you will qualify.

Sorry if this isn't what you wanted to hear. And that you're going through this - it is tough.

try this You should get Child Tax Credits and Working Tax Credits. If your former home is up for sale it is disregarded for at least six months when working out your Housing and Council tax benefits- this can be extended at the discretion of your local council (who work out your Housing Benefit) so long as you are making 'reasonable efforts to sell' It doesn't matter if there is any equity there or not.

The link has online calculators for Tax Credits and HB and is easy to use. Hope this helps

Go and see the Lone Parent Advisor at the Job Centre.

I went to see them before I separated from my husband and they were very helpful.

Basically, you will be entitled to help with your rent, Council Tax, Working Families Tax Credits - but I am not sure of the exact amount.

You do not necessarily get all the interest paid on a mortgage, it depends on what you have paid in tax in a qualifying period. So I get £111 a month towards the interest on mine. I would actually be 'better off' if I rented as all my rent would be paid but I have chosen to stay in the family home.

Also, call Child Maintainance Options as they will tell you how much maintainance your husand has to pay and this does not get deducted from any benefits anymore.

And, you will get help with any childcare costs you have and things like school dinners/healthy start vouchers etc which all help.

Good luck!!!

Go and see the Lone Parent Advisor at the Job Centre.

I went to see them before I separated from my husband and they were very helpful.

Basically, you will be entitled to help with your rent, Council Tax, Working Families Tax Credits - but I am not sure of the exact amount.

You do not necessarily get all the interest paid on a mortgage, it depends on what you have paid in tax in a qualifying period. So I get £111 a month towards the interest on mine. I would actually be 'better off' if I rented as all my rent would be paid but I have chosen to stay in the family home.

Also, call Child Maintainance Options as they will tell you how much maintainance your husand has to pay and this does not get deducted from any benefits anymore.

And, you will get help with any childcare costs you have and things like school dinners/healthy start vouchers etc which all help.

Good luck!!!

this is all things i never knew, like going to the job centre to see a lone parent advisor, i haven't heard of one of them, i thought job centres were just for signing on and getting jobs.

when house is sold there won't be 16k equity each, maybe 14k each. The reason i chose to rent instead of stay in the house is because i could only afford mortage on interest only and wouldn't be able to financially manage if anything needed repairing.

financially i know it will be a struggle being on my own, i am certainly not going to be any better off, how do you all manage. I don't want my daughter to miss out on anything like trips, days outs, cheap hols etc.

'If you have equity therefore will have more than 16k savings I do not think you would get much, but I maybe wrong and it may apply only to IS'

This is lowered now in most councils. From £6-£8K in many councils.

So with £14K, you may not qualify for Housing Benefit. Consult your particular council.

You will, however, get working and child tax credits.

expat- until the house is sold and the equity is released it does not count- the property is disregarded if up for sale. The universal capital limit in all UK councils for HB is 16k- if you have this in savings and investments you will not qualify wherever you live in the uk. Trust me I'm a professional

so, if the interest only gets paid on an interest only mortgage, they PAY your mortgage for you? does this have a time limit.

what happens if you have a repayment mortgage? do they pay a % of it, which would equal the same as an interest only payment?

If you have a repayment mortgage, and you wanted to stay in home home, does it mean you could change to an interest only mortgage?

they will only pay the interest, pink, to a certain level, and, once you are moved onto JSA when your youngest child is 5, only for 2 years.

here

It doesn't include any repayment, just interest.

Sorry to hijack the thread!

Saggyhairyarse - Would you mind elaborating on what you mean by 'you do not necessarily get all the interest paid on a mortgage, it depends on what you have paid in tax in a qualifying period'.

I have been advised by mortgage company that SMI is paid at a fixed rate of 3.63. This means if your interest rate is above this you would need to find the shortfall. However, if your interest rate is below this, the balance will be used to pay off the capital. I've not been told anything about paying tax for a qualifying period though?!

Thanks

I'm going through something similar, it's a minefield.

I phoned a neighbouring council (mine was useless) and found out I was entitled to £507 a month in housing benefit with full council tax benefit. I called the tax credits helpline and was told I would get around £40 weekly child tax credit, I phoned the job centre was was told I would get about £62 weekly job seekers allowance and I could keep my £6.50 a week from the CSA (yes, £6.50!) and our child benefit. I then phoned them all round again checking with what the other ones had said - they only know their own dept. and not anything else! and it seems right.

It looks like I am better off unemployed than working so that's what I think I'll do. Give notice and sit around bored but financially better off. Gotta love this country!

Apologies if I do not make sense but I have and I'm enjoying it lol

Regarding mortgage interest payments, according to moneysavingexpert.com there is a 37 or 39 week qualifying period. From recent experience, please don't trust what you are told by someone at the JC, double check and check again!

WADA, I don't know the exact ins and outs of it, only what happened in my individual application.

If you have over 16 thousands pounds in the from of savings or house etc you will get no help from housing benefit.

Ridicules really because they would rather you spend all your money you might at some point want to use as deposit.