Universal Credit

[bambara]

Please let me know if this is not the right board to post on.

I have lived abroad with my husband and three children for 13 years. We have paid our voluntary NI contributions in this time. Sadly my husband has left me and the kids, and lost his job. We have to return to the UK, he will stay abroad. I am looking at Universal Credit / Benefits until I can establish myself in a job (hard with three kids). Ive never claimed any benefit before and am a bit lost. We are lucky enough to own a house with tenants that cover our mortgage. I cannot financiallly afford to return to my own home, my mortgage is higher than i can afford, so was looking to rent. Ive checked the Turn2Us calculator, if i live in my own home i am entitedl to enough benefits to cover my mortgage, but if i rent and state that I own my own home and am not living it, i get just 200 a month. This doesn't make sense to me. I would love to return to my own home, is this an error? Is there a way around this?

I can't afford to live in my house, or afford to live on 200. For those suggesting I sell, we are unable to legally for another 2 years. We are literally stuck with the house.

Thank you very much for your help. Im so worried

Are you now back in the UK? If so I would advise you to contact the Help to Claim Service operated by Citizens Advice. They can advise you on all aspects of Universal Credit including how property that you own is treated and when the value of this can be disregarded. Their number is 0800 144 8 444 the line is open from Monday to Friday 8 a.m. to 6 p.m. There is also a lot of information on Universal Credit on the Citizens Advice website.

I don’t understand, f you’ll get enough money from UC to cover your mortgage if you live in your own home why can’t you live there? Also why can’t you legally sell for 2 years?

I think she means her total entitled would pay the mortgage but there would be zero money leftover for bills, food, living.

I would be looking at that again because there is absolutely no way that universal credit will cover your mortgage because that would be like the state funding you to buy a house. I know they can give a loan towards the interest. I’ve just looked that up but no way would they fund the mortgage? So unless you put it down as a rent not a mortgage that’s probably why they said they’d pay it all.
Plus you asked a reason as to why they won’t cover it when you’ve got tenants in that house because that would be classed as an asset and you know you’re on benefits you cannot make money from an asset. You’re saying that their rent just covers the mortgage but that’s still money with universal credit you’re not even meant to have any savings up to a value of 16,000 anyway.

Yes it would take all my money on the mortgage but nothing left for anything else. I could rent a house for half the price and have some left over to pay bills.

If you look up, your universal credit does not cover mortgages there is a small amount as a loan to cover the interest payment

You will not be able to do that if you have a house with tenants in if you declare that if you want to be illegal and do not declare it that’s on you but there is absolutely no way they are going to give you money while you’re getting money from tenants

I did today, they just sent me links to pages and calculators. I suppose the idea is that if i own a property, then im rich, but with the increase in mortgage interest rates its actually far cheaper to rent and let my tenants pay the mortgage. I wish i were rich.. far from it

I guess what I would do is sell your house and try and get a small house or use the savings of the house to rent or ask citizen advice bureau because you are not going to get benefits while having a house that is being rented not a chance

Thank you - very helpful.

Well i dont, it all goes to pay the mortgage but i see your point.

Could you move into your house here, change your mortgage to interest only so that will reduce the monthly cost and ask the children's dad to contribute.

Listen I totally understand what you are saying but here is a link from shelter. There is no way that universal credit is going to pay your mortgage so I do not know where you got that information from you need to scrap that idea right now.
you have two months you can give a section 21 for your tenants to move out and try to sell that property and maybe downsize and use your savings to help you until you get a job or sell the property user savings and try and rent out of your own savings because you’re only allowed 16 K while on universal credit but they won’t pay your mortgage and they certainly as I keep repeating myself because I don’t think you get this they will not pay for you to have tennants

https://sheltercymru.org.uk/housing-advice/paying-for-housing/universal-credit/can-i-claim-for-help-paying-my-mortgage/

There is no point there are rules you’re not getting this you are not going to be able to do what you want to do not at all they won’t allow you to do it. If you do do it. You are breaking the law and you will be liable to pay back anything under fraud.
So you’re gonna have to think of other alternative as I’ve just suggested

Yes i thikn Ill have to. I just feel bad as my lovely tenant was heartbroken when i told her i may need to move back and so i promised her i would find another way.

He does say that after three months universal credit will help towards interest only if you get a small loan

But you also need to be aware if you read the link I’ve just put that you cannot get any help with a loan for that for three months so you might need to look into that too

Thank you x

I know I’m going on a bit, but I just wanted to understand as well that if you get a section 21 that’s a minimum of two months that your tenant has got to go but she might fight that so you’re gonna have to work out what you gonna do in the meantime?

Has your DH abandoned all financial responsibility for his children?

What is legally stopping you selling the house?
It is a shame for your tenant but maybe you can sell as rented with tenant in situ to a landlord?
Then use the money to buy small property in cheaper part of UK with zero mortgage

He doesnt have a job right now. So yep.

Just that we are tied in to our mortgage and will pay a huge sum for selling it

Sell your house asap. You may not get any benefits for 3 months on your return. Do you have a pot of money to tide you over?

How much equity do you have in your UK house?

Do you own a house abroad? This can complicate things too.

Will you even be entitled to claim benefits if you have been out of the country for 13years. There are quite strict rules governing this.