If this is your first visit, check out the community guide. You will have to Join us or Sign in before you can post.

Will paying off my mortgage affect my benefits?

MissVelvetenaMissVelvetena Posts: 3Member Listener
edited March 13 in Finances and extra costs
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.

Replies

  • CockneyRebelCockneyRebel Posts: 4,125Member, Community champion Brian Blessed
    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
  • MissVelvetenaMissVelvetena Posts: 3Member 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.
  • CockneyRebelCockneyRebel Posts: 4,125Member, Community champion Brian Blessed
    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
  • MissVelvetenaMissVelvetena Posts: 3Member Listener
    Oh lovely, many thanks. :) Was thinking of releasing enough to pay off the capitol & about £3,000 for some urgent house repairs.
  • CockneyRebelCockneyRebel Posts: 4,125Member, Community champion Brian Blessed
    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
Sign in or join us to comment.