Money for house purchase

mickymoo

Good morning 
I am currently claiming HB universal credit council tax support and awaiting lcw/lcwra and have  been awarded pip
We live in a council house and plan to exercise our right to buy  with 67% discount we have had this planned for quiet some time
My plan was to cash in my pension and get a mortgage for the remaining balance but now unable to work so cant get mortgage 
But unfortunately my father passed leaving me some money  but be a few months before I get that but have got my pension money 
I have read on government sites that I can have savings for 26 weeks if it's for buying a home 
My main concern is if and how it will affect my benefits and what do I put on my journal and is it right about the 26 week rule 
Thank you in advance 

janer1967

Hi and welcome to the community, I am sorry I don't have the answer to yur questions but hopefully other members will have more knowledge

Adrian_Scope

Hello @mickymoo. I'm sorry to read about your father.

The disregard for 6 months / 26 weeks is after selling your home, the money from a house sale is disregarded for upto 6 months/26 weeks if you're intending to use the money to purchase a new home. Unfortunately it's my understanding that this doesn't apply in your situation, and the money wouldn't be ignored. Any money you have is counted as savings/capital. If this is over £6,000 you need to let Universal Credit know. Between £6,000 and £16,000 they will deduct £4.35 a month for every £250 over £6,000. If you have more than £16,000 your Universal Credit will stop.

mickymoo

@Adrian_Scope
Thank for your reply I can pay my car loan and credit cards etc so that iam debt free or not????

mickymoo

@Adrian_Scope
Hello Adrian does the £.4.35 per £250 per month affect HB or is it just whatever universal credit I receive no matter how it's made up
Thank you
Mickymoo

mickymoo

@Adrian_Scope
Sorry to be a pain when I get my pension pot which will be any day now I plan to my car loan and credit cards straight away ie within hours do I tell universal this or the remaining amount once paid all my debts
Thank you

woodbine

With some legacy benefits this would have been seen as deprevation of capital however my understanding with UC this is ok, but you might want to check that with them.

mickymoo

@woodbine
Thank you for your reply so are you saying I can pay my debts  of  if so do I need to tell uc that I am paying debts of first or do I pay all my debts then tell them what I have left 

janer1967

I personally wouldn't do anything without getting some expert advice from welfare rights or CAB 

woodbine

@janer1967 exactly, its always best to get further advice, in fact I would check with UC themselves.

janer1967

I agree @woodbine but sometimes they dont have a lot of knowledge themselves especially at present as they are all working in diff depts to cover . 
Also sometimes people dont actually want to discuss their financial situation with DWP 

woodbine

@janer1967 tell me about it, I had a really strange conversation with the DWP last week but in @mickymoo situation with an inheritance and pension he will have to tell them.

janer1967

I agree he does have to tell them just think he needs advice before he does 

mickymoo

@janer1967 @woodbine thank you for your input I,am going to workout how much my car finance personnel loan and credit cards are to clear then as soon as I get my pension pot tel uc the exact amount I've got and the exact amount I,ll be paying out to clear my debts I,ll wait about telling them my inheritance as I dont know when that will come through due to it going to probate and unsure of the amount just have to bite to bullitt and see what they say
Thank you for your comments 
Mickymoo