Mortgage and Benefits

[iwasagirlinavillage]

Me and my husband separated in February and me and my two daughters have been living with my parents since April. I have applied for and been awarded WTC and CTC. We are in the process of selling our house where my husband is still living - it's on the market but no offers yet, I've suggested we reduce the asking price. He has continued to pay all household bills and the mortgage while he's living there but it's not affordable long term. The fixed term of the mortgage expired in April and as such the monthly repayments have increased. He is struggling with this so, although we're selling, he has applied for a new mortgage product to reduce it back down.

The problem is that this needs my agreement. In principle I agree to it, BUT, if I agree to a new mortgage product with him, could that put my WTC and CTC at risk? As it would/could look as though I am living in the house with him and we are still "partners", whereas my benefit claim is done on the basis of being a single applicant without his financial support, both of which are true.

Does anyone know where I'd stand with this?

Just to add that he would most likely be refused a mortgage if he were to apply on his own.

I work for a major bank and because if your circumstances you can apply for a mortgage holiday.

Is all your mail coming to your parents' house? Is the address on your HR record at work your parents'? Is it the address that your DCs' school has for them? My point is that if everything shows your parents' address it won't really look suspicious. You could always ring the tax credits helpline to tell them what you're doing as well - the call will be recorded so make a note of the time and the advisor's name, and you should ask them to write a note on your record.

I wouldn't lock into a fixed mortgage as you may face hefty early repayment charges when you sell.

If the mortgage is already in joint names then switching to a different deal with the same lender shouldn't require any checks at all. Yes you would need to agree to the new deal but as far as the ctc and wtc are concerned you have a mortgage whether it's expired onto the svr or you have signed up for a new deal, no difference whatsoever.

But yes, just be careful about signing up for deals which tie you in and have penalties when you sell

He actually said he has gone for the tracker mortgage rather than fixed to avoid fees when we sell. Unfortunately we haven't overpaid on the mortgage previously so I don't think a mortgage holiday is an option. I haven't yet updated my address with HR but I have requested post be sent to my parents address from work. DCs nursery is still the old address. Basically, no, I haven't switched stuff over yet and any post that goes to that address he puts in the bag when he brings the DCs back after having them. I think I'll give WTC a call tomorrow and see what they say. Thank you to everyone for replying, and about making a note of when I called and requesting the advisers name.