Loan whilst on UC

[Jj3316]

Hello every I work part time and since splitting with my ex over a year ago I have been receiving UC to top up my wages along with child element I have one son. Im about to purchase my first car as I only just passed! Obviously I'm not well off given I'm on UC but I want a car that's going to last me over the next 3-5years so would rather get reasonably decent one than something for a few hundred and rinsing me month after month. Cars in looking at are in the 3-4k range initially owas thinking finance but a loan actually works out better I can pay cash, no deposit, and I think the interest is actually better on the loan. I have a good credit score. My question is, if I took out this loan and it goes into my bank, take out the cash ( I'm hoping as a cash buyer I could potentially get the car in looking at cheaper ) Would this effect my payment's? Obviously the money will in my bank but I'm taking it out straight away. I'm still looking and hopefully will buy within the next 2 weeks I just don't want to do this if they stop or lower my payments.

I've no advice but just you're not alone in trying to navigate a complicated system hopefully someone with experience of this can advise.good luck and hope you're able to get the car.

No that's fine. It's under the £6k savings limit and if they do a review, you will be able to provide proof that it went on a car which is a necessary expense. The fact that it's a loan that you're replying will also show it is totally legitimate.

Absolutely fine, don't worry.

I had this too I work/ claim UC. Money in your account becomes savings as you move from one claim period to the next. Take out your loan at the start of your claim period, you will have a month to complete your purchase.

Maybe you could advise me,I received tax rebate cheque,we get our statement on the 6th paid on 10th
Do I declare that cheque now or once it actually clears.
We struggle a bit with the ins and outs of it all.
Any advice welcome.

I also had this situation! I actually messaged them to ask and they said as it’s from HMRC they are automatically told and you don’t need to declare it. I would message them in your journal so you have that in writing then put it in your account in the claim period that suits you.

I hope not. I might have to do it in a year or so and it would take me over the 6k for a week or so.
Either UC increase the saving limits in line with inflation or they accept people will need to get loans for a "new" car and disregard it for a short period.