UC as a new home owner

[78gingernuts]

I'm not getting anywhere with UC people. So maybe the knowledgeable MN can help me as I'm so confused.

I've been claiming UC for the last 3 and a bit years since my partner left, and I've had our 2 DDs (10 &16) pretty much full time. I have always worked FT.
Up until this week I was renting a property from a private landlord.

But I am now a home owner. Thanks to a generous gift from my mum and an affordable mortgage.
This has drastically reduced my housing costs. But my income is the same.
We moved in last week.

So I've been trying to update UC of the change of circumstances. I have told them everything, not been cagey given them any docs they asked for.
But I still don't know if my claim is still valid as a home owner. Even though I have asked them out right.
The reply I got was a pleasant 'good luck in you new home'

So, good MNers can anyone tell me if I'm still entitled to claim UC.

If not then so be it. I just need to know so I can adjust my budgets

Many thanks

I think property is counted in means texted benefits

Meaning it would take into account how much it's valued at.

We can't give you a definitive answer as it would be dependent on actual numbers involved. Owning a home does not stop you claiming uc but it might mean you are not longer eligible due to no longer paying rent. The mortgage cost isn't taken into account so you lose the housing costs allowance from your claim, that could potentially reduce your payment to £0

That is outrageous if it's true. Some people can't afford a home, but others don't choose to save for one. Certainly in my generation, some people preferred holidays to a privately owned house. Why shouldn't people be treated equally? It's becoming disadvantageous to buy a home throughout life. That isn't fair.

However I could be totally wrong! So please keep trying to find out.

UC don't count the property you live in as income or capital. If you have a mortgage to pay and do any work they won't help with that.
See Citizens Advice under benefits www.citizensadvice.org.uk/benefits/universal-credit/before-you-apply/Check-if-you-can-get-Universal-Credit/

Have you used the calculator online to check. You will get less as you are not in rented accommodation anymore.

I’m not quite sure what you’re asking, is it about housing benefit..did you previously get a housing benefit allowance and are asking if you still get this as it’s now a mortgage.

I think you can but it’s a loan and has to be paid back if you sell the house. Someone more knowledgeable can help.

www.gov.uk/support-for-mortgage-interest

You will no longer have housing costs but your work allowance will be higher. Depending on your wage your payment will potentially go down to zero but it might not depending on how much pay you get

Was your UC claim amount prior to the move for an amount higher than the cost of your rent?

If so, then yes you are likely still able to receive UC but it will be a new, lower figure as it will no longer contain a housing costs element.

E.g.
Your old claim you may have received £300 made up of housing, £250 made up having children and £100 for your income meaning your UC was £650 a month. You'd still be eligible for the £250 and the £100 (£350 total), just not the £300 that you formerly got for your housing costs.

Hope that makes sense? (Figures are totally random - was just trying to explain).

As long as you've provided all the requested documents then it should be as above. Also; if you are not claiming any housing related costs within your UC claim I'm sure that in some circumstances this raises your allowance entitlement before deductions through earnings?

Best best is to check on entitledto.com!

if you have properly reported a change of circumstances to housing costs and your address then it will automatically recalculate what you’re entitled to.

A message on the journal isn’t reporting a change to your housing. You should call them and check you’ve done it properly and then after that just wait to see what your statement is says you’re entitled to.

You just report a change ( report on the HOME page of your journal ) that you no longer have rental costs so will lose the rent element from your claim. You will now get a higher work allowance on your claim as you are not claiming rent element. So £631 will be disregarded from your monthly earnings before deductions are calculated, rather than £379 currently. You can still claim UC as long as you still have an award without the rent element. So on your claim going forward you would just have your standard single element and 2 x child elements. Then they take your net wages, deduct £631 then multiply by 0.55. If that still gives you an award then you will still get UC.

Op cannot claim support for mortgage interest. This is only for people who have had no earnings for 3 months - this does not apply to op if she is still working and is not something she could claim.

Completely untrue. A property that the claimant lives in is completely disregarded as capital.

Zombie

It might be interesting to find out what did happen though if op is still around?

Erm, well, for my generation a holiday costs about £500 - £1000 and a house deposit costs around £30,000 plus a high enough income to pay an enormous mortgage, so it's highly unlikely that the holidays would be instead of a house, unless they were taking an unusual amount if very expensive holidays.

Whoops very tired, didn't see it was a zombie!

Do you live in the house you own?

If you do you will be fine. You just won't get the housing element of UC but you are entitled to the other aspects.

If you don't live in it though they will give you a grace period where they will expect you to sell the property and when that runs out they count it as capital