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TOPIC: Paying off mortgage to be able to move

Paying off mortgage to be able to move 7 months 6 days ago #204261

I care for my partner and daughter who both recieve PIP/DLA. I own most of my home with a relatively small mortgage. However, as we have a very low income due to my partner's disability and my caring obligations limiting our earning capacity. When I got divorced I found that I was barely mortageable because of low earnings and dependence on benefits but I did take on the previous family home (but wasn't allowed to keep the existing mortgage deal) and to cut a long story short, was only able to get an interest only mortgage and not for the whole amount I was seeking. Having sorted that out, now I would like to move but doubt I would be given another mortgage (I'm also 54) for another house. The mortgage I have, was given purely on the basis of capital being there to pay it back on sale. My assumption was that I would move by selling to become mortgage free and thus able to buy smaller house in a cheaper area. Now I have found out a bit about the vagaries of Deprivation of Capital rules. So my question is, if I can't repurchase except by paying off my mortgage, does that basically mean we can never move house without losing all our Tax credits and council tax benefits - maybe more when we switch over to UC? There is a good case for moving as my partner has another disabled child to get nearer to and my disabled child needs to move to a good special school. Would this count in any way? Thank you for taking the time to read this.

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Paying off mortgage to be able to move 7 months 5 days ago #204277

A

Welcome to the forum, you might want to have a look at the following FAQ which explain where everything is

Welcome to Benefits and Work

In case you are not aware, your real name appears to be showing in the forum, if you want to change this then follow the instructions in the following FAQ

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You really need to get face to face advice about this, do an internet search for "welfare advice" with your postcode, town or county.

Selling you home and using the proceeds to fund the purchase of a replacement should not be considered as Deprivation of Capital, but there are rules that you would need to follow and this is not an area of benefits that we cover on the forum.

Gordon

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Nothing on this board constitutes legal advice - always consult a professional about specific problems
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