Leaving and buying my own property

[Rufflepuffle]

Hello,

After many years of being unhappy, I am splitting up with my partner after 18 years. I am 34, we have three children: 16 (m), 13 (f) and 7 (f). 16 year old is in 6th form. At present not entitled to any benefits due to joint income.

We are joint tenants in the house we own. Worth £260-270k. Approx £134k left on mortgage, fixed til Aug 25. He has spoken to the mortgage company, who have advised we can take me off the mortgage and will have to pay solicitors and credit check to make sure he can afford the mortgage on his own. Plan is to release half the equity to give to me as a deposit for a house. After fees etc I'm hoping for £60k-65k which I will keep £4k from to buy furniture and £1k put money in to savings. I have £5k savings in my own name and know that £6k is the maximum I can have before it starts to reduce the amount of UC I will be able to claim.

I earn £27900. I pay £5% into a pension and have a Plan 1 student loan. At present childcare equates to £100 p/m for our youngest, as my partner works from home and does the school run 3 days per week. School holidays are covered by some childcare, grandparents and annual leave. At present we use Tax Free Childcare, but I know when I am on my own I will have support from UC instead; I will therefore pay £50 childcare.

My partner will not be claiming UC as he earns too much. He will continue to pay his half of childcare with TFC. He will not pay any maintenance as we will have the children 50:50. I will be classed as main parent for UC & CB purposes.

Other than student loan/mortgage/childcare I have no debts or committed spending. I have a small car which I own outright and costs very little to get to work as I only work a few miles away, and is a cheap car to run and insure.

A few things:

• I have run through the benefits calculators on Entitled to and Turn to Us and they both say different things despite entering exactly the same information
• I need this information to be able to be able to accurately find out how much I can borrow for a mortgage
• Obviously, I will not be able to claim these benefits until I move out. So how will that work with the mortgage, as I won't actually be claiming when I'm applying just speculating what I will get?

Please could someone give me a good idea what I will be entitled to claim, and if I can use speculative figures when applying for the mortgage.

Thanks!

Most mortgages don't take benefits in as income only your wage. I know Halifax only take 10% of benefits into account as income. Unless you can get a mortgage on your wage alone it won't be likely you can get one including benefits in the calculations.

Thanks @ZombieBoob I have looked at Skipton who will take benefits in to account. I have a DIP from them based on the benefits Turn to Us say I will be entitled to. I guess the sensible thing is to ring them to speak to them!

You might get a little more from the equity if he has a pension?

Don't forget that the savings limit also includes all money such as your current account, not just that in savings accounts

If you're separated and have completely separate finances/lives you can claim benefits before you move out.

Thanks, even if we're not married?

Sorry that last question was to @Twazique

That's a good point, so better to keep the savings at £5k then. Bills will likely go out within a few days of being paid but will still leave me money in my current account for the month.

And for your second point, this may be the best way to go. At present everything goes in to a joint account, so having salaries go in to our personal accounts is a good way to go about it. What else would I need to do to prove we are separated whilst still living together?

Thanks

If you're still living with your ex-partner
You should still report that you've split up - you should still be able to change to separate Universal Credit claims.
You'll need to tell the DWP that you have 'separate households' even though you share an address. Explain how you're no longer living as a couple - for example if you're cooking separately, have separate finances and don't spend time together.
The DWP might also ask why you're still living together - for example if you can't afford to move out
^

The above from^ www.citizensadvice.org.uk/benefits/universal-credit/what-youll-need-to-do-on-universal-credit/check-if-a-change-affects-your-universal-credit/#:~:text=If%20you're%20still%20living%20with%20your%20ex%2Dpartner&text=You'll%20need%20to%20tell%20the%20DWP%20that%20you%20have,don't%20spend%20time%20together.^
^

Based on your information your uc should be slightly more than £140 per week. They don't deduct student loan repayments, so it's income after tax, ni and pension. As others have said you can claim as separated in the same house. All your finances have to be separate and you have to be living a separate life, so not cooking for each other, not doing each others washing ect, ect, basically living as if you were in a shared house with a stranger. Good luck op, I hope it all works out for you.

Regarding savings there something that I cant remember the name of where they disregard savings from example a house sale if your buying another house. Obviously you wouldn't be able to claim housing element on uc with a bought house but due to that it increases your individual allowance.

To buy you may need money for

Solicitor fees
Survey
Stamp duty
Moving costs