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Saving for a house while claiming UC?

13 replies

grcxo · 29/05/2024 23:12

as a little background, i’m in an 8 year relationship which i’m looking to put to an end. both me and my partner are very different people and over the years i’ve lost my self little by little. i’m coming to terms with the fact we’re better off apart.

over the years ive endured a lot of controlling and coercive behaviour, we’ve been together since i was 19 and to me this was all normal. only since it’s brought me down and i’ve opened up to friends and relatives they’ve advised me a lot of what i’ve been going through is emotional abuse.

i know putting an end to the relationship will leave me with nothing, no car, no home, no phone, nothing. but i’m at the point in life where i want to be happy more than i want to be comfortable. i’ve endured this long enough, and it’s eating away at me.

i’ve spoken to women’s aid, and they’re assisting me through this. they advised on seeking refuge for temporary accommodation.

we currently own a home together, i only own 20% of it. i’ve worked out in equity i could be entitled to roughly £30k (he has complete control of finances, so im not 100% on the exact figure).
i want to be able to purchase my own home under a mortgage in time, however due to my low income i will need assistance from UC to get by. as my savings will exceed £16,000 due to the equity from the house will this affect my entitlement? £30k is not enough to put down a fair deposit on a house in my area. i have a little boy, and the areas this would cause us to live in are not by any means safe.
i’m happy to rent for the time being, but i’m almost 30 and never rented a property in my life. it’s not something i’d ideally want to get stuck in the loophole of.

not only that, but by having a mortgage, will this alone put any affect onto my entitlement for UC?

I’ve had a brief look online and it seems you can exclude your saving by putting it into an ISA for a home, but this is only for first time buyers. although i’ve owned 2 homes previously (including my current one) these were heavily relied on my partner. my first home i owned 25%, my current i only own 20%.

does anyone have any advice, tips or possibly any similar situations? maybe not even about the money specifically, but anything that could relate to this situation would be so helpful.

i’ve been wanting to walk for years, but after constant comments that i won’t make it alone, i’ll have nothing, i’ll end up homeless, i won’t be able to provide a good lifestyle for our son, that i’ll forever be dependant on a man, it’s made me too scared to walk away. i’m plucking up the courage to be selfish and prove him wrong, to finally stand on my own two feet. i just really don’t know where to look or where to go.

this is quite a long essay of some sort, so if you have taken the time to read this. then thank you x

OP posts:
interiordesignmummy · 30/05/2024 06:22

This reply has been deleted

This has been deleted by MNHQ for breaking our Talk Guidelines.

AutumnCrow · 30/05/2024 06:35

This might be a useful thread, OP, especially posts like this one

'oviraptor21 · 20/06/2022 14:19
It will be disregarded property for 6 months or more
www.turn2us.org.uk/Jargon-buster/Disregarded-Property
More detail at assets.publishing.service.gov.uk › ...PDF
ADM Chapter H2: Capital Disregards - GOV.UK H2114 etc'

https://www.mumsnet.com/talk/divorce_separation/4572405-house-sale-and-universal-credit?reply=118006610

How Universal Credit is Affected by Capital or Savings

Any capital/ savings you have under £6,000 is ignored.

https://www.turn2us.org.uk/Jargon-buster/Disregarded-Property

Twiglets1 · 30/05/2024 08:37

Definitely sounds like you’re doing the right thing leaving a coercive & controlling relationship, you’re strong to do it ❤️

The LISA for buying a first home are strict in the rules so you won’t qualify I’m afraid if you have part owned a property previously. But there may be other schemes you will be able to access, I don’t know.

I wouldn’t necessarily worry about buying somewhere right now, sounds like you have enough on your plate just dealing with the separation so maybe better to rent for a while rather than dealing with additional stress of buying? Just my opinion. Good Luck in whatever you decide to do.

RagzRebooted · 30/05/2024 08:39

I think the money from property, if being saved for another property, can be disregarded but only for a short time which may not work for you.

Unexpecteddrivinginstructor · 30/05/2024 08:54

Would you qualify for any shared ownership homes nearby?

HoHoHoliday · 30/05/2024 10:32

I applied for universal credit earlier this year as I'm unemployed not by choice. At first my claim was dismissed because I had more than 6K in savings. So I had to use those savings to live off until they went down enough and I was able to start a claim again. Frustrating, but fair enough, if you have some money you should use it to live off!

If your home is sold and you have 30K from it then you either need to use that money to live off - renting - or you need to put it into a property which isn't counted in a UC claim. Are there any shared ownership or other affordable buying schemes you can get into?

I think you're incredibly strong and courageous for believing in yourself and making plans to leave. Regardless of money, yours and your son's lives will be so much happier once you leave.

DildoHarding · 30/05/2024 10:43

HoHoHoliday · 30/05/2024 10:32

I applied for universal credit earlier this year as I'm unemployed not by choice. At first my claim was dismissed because I had more than 6K in savings. So I had to use those savings to live off until they went down enough and I was able to start a claim again. Frustrating, but fair enough, if you have some money you should use it to live off!

If your home is sold and you have 30K from it then you either need to use that money to live off - renting - or you need to put it into a property which isn't counted in a UC claim. Are there any shared ownership or other affordable buying schemes you can get into?

I think you're incredibly strong and courageous for believing in yourself and making plans to leave. Regardless of money, yours and your son's lives will be so much happier once you leave.

You can have 16k in savings although anything between 6 and 16 will reduce UC, you can still claim with 6k

HoHoHoliday · 30/05/2024 11:23

@DildoHarding I'm sure everyone is assessed on their own specific circumstances. Perhaps because I'm a homeowner/mortgage payer, or for whatever reason, I was told my claim was turned down because my savings were over 6K and I had to re-submit my claim when I got below that amount.

DildoHarding · 30/05/2024 17:18

HoHoHoliday · 30/05/2024 11:23

@DildoHarding I'm sure everyone is assessed on their own specific circumstances. Perhaps because I'm a homeowner/mortgage payer, or for whatever reason, I was told my claim was turned down because my savings were over 6K and I had to re-submit my claim when I got below that amount.

Edited

It's really not correct even as a home owner. It's tapered between 6k and 16k but not an outright no. I'd ask them to complete a subject access request so you can see the reasons why as you shouldn't have been refused

Isitchill · 30/05/2024 17:29

The £6k limit should be raised too. It's been £6k since it started.
Even child benefit earnings threshold has risen.

mitogoshi · 30/05/2024 17:31

Your best option is to see if there are any shared ownership options where you can put down the £30k and rent the remainder

caringcarer · 30/05/2024 18:08

I think you get a 6 month period where the money from your house can be used towards a further purchase. Then if you have not bought a property to live in you have to stop claiming UC if it's over £16k which yours will be. You could conside moving away to a cheaper area especially as your exh is abusive. A fresh start. In some areas £30k would be a 30 percent deposit.

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