Will paying off my mortgage affect my benefits?

SeashellJane
SeashellJane Online Community Member Posts: 1 Listener
in Start here and say hello!
Will paying off my mortgage affect my benefits? I'm currently on Universal Credit and Pip. I have a Recoop (sorry for the spelling) mortgage and want to know if it will affect my benefits if i pay it off.

Comments

  • poppy123456
    poppy123456 Online Community Member Posts: 64,467 Championing
    edited April 2024
    Paying off debt is allowed when claiming UC. Out of interest what is a recoop? 

    If you currently have capital/savings of more than £16,000 you must still report the changes and then tell them that you have paid off your mortgage. Your UC will continue if you have less than £16,000 after it’s paid off but there will be a deduction of £4.35/month for every £250 or part thereof over £6,000.

    If you’re claiming council tax reduction all local authorities have their own rules and some have savings limits of £6,000 before entitlement end. You must report the changes to them. 

Categories