Will paying off my mortgage affect my benefits? — Scope | Disability forum
If we become concerned about you or anyone else while using one of our services, we will act in line with our safeguarding policy and procedures. This may involve sharing this information with relevant authorities to ensure we comply with our policies and legal obligations.

Find out how to let us know if you're concerned about another member's safety.
Please read our updated community house rules and community guidelines.

Will paying off my mortgage affect my benefits?

MissVelvetena
MissVelvetena Community member Posts: 3 Listener
My mortgage term comes to an end at the end of June & I am on ESA & have applied for PIP. If I pay off my mortgage with Equity Release, will it affect my benefits, please? I don't want the DWP getting their knickers in a twist, had enough trouble with them this last three months!! Thanks.

Comments

  • CockneyRebel
    CockneyRebel Community member Posts: 5,209 Disability Gamechanger
    Hi MissVelvetena and welcome

    Can you clarify please
    Your morgage term ends in june, does this leave you with a capital balance to pay off ?
    Before contemplating any equity release you should get trained financial advice

    PIP is not means tested so will not be affected
    Is your ESA contribution based or income related ?

    CR
    Be all you can be, make  every day count. Namaste
  • MissVelvetena
    MissVelvetena Community member Posts: 3 Listener
    Yes, its an Interest only Mortgage, so the capitol is to pay off. My ESA is income based. Getting a phone call tomorrow from Step Change Financial Solutions.
  • CockneyRebel
    CockneyRebel Community member Posts: 5,209 Disability Gamechanger
    If you are only releasing sufficient equity to pay off the capital I don't think there will be a problem
    If your are releasing some for other purposes then up to £6000 should also not affect your ESA

    CR
    Be all you can be, make  every day count. Namaste
  • MissVelvetena
    MissVelvetena Community member Posts: 3 Listener
    Oh lovely, many thanks. :) Was thinking of releasing enough to pay off the capitol & about £3,000 for some urgent house repairs.
  • CockneyRebel
    CockneyRebel Community member Posts: 5,209 Disability Gamechanger
    Please do keep all records of what you do with the money as large sums do raise questions
    I cannot see that using the equity in your home to repay the capital borrowed, which you have no choice about, can come under deprivation of capital and likewise any amount under £6000 does not affect ESA (IR ) and monies used for essential repairs should also be discounted
    But I don't trust these buggers

    CR
    Be all you can be, make  every day count. Namaste

Brightness

Complete our feedback form and tell us how we can make the community better.

Do you need advice on your energy costs?


Scope’s Disability Energy Support service is open to any disabled household in England or Wales in which one or more disabled people live. You can get free advice from an expert adviser on managing energy debt, switching tariffs, contacting your supplier and more. Find out more information by visiting our
Disability Energy Support webpage.