How will having a Morgage on a 2nd property affect my benifits — Scope | Disability forum
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How will having a Morgage on a 2nd property affect my benifits

heatherknott04 Community member Posts: 1 Listener
Hello I am hoping someone can help me. Myself and my husband and children currently live in a property that’s ours paid for completely I am on Esa , uc , pip I have mobility and care problems due to MS. 
But I want to be able to get a Morgage to buy my grandparents house as they are at the age where they have to pay back there Morgage but that means they have no savings to live off so I am hoping ( we have been told we can get a Morgage ) to get a Morgage and buy it then put it into trust for my children , my grandparents wouldn’t be paying any rent and would live out there lives there ( they are in there late 70s and early 80s ) but before we go steaming ahead I wanted to find out if by getting a Morgage on a property and putting it in trust for my children we would lose any of our benifits ? As currently I can only work a few hours a week and couldn’t possible afford to
lose them and we wouldn’t be making any money on the property as wouldn’t get charging rent at all as they are giving it to us at a reduced price and we would be having more outgoings due to Morgage and insurances ? 
Any help would be appreciated 


  • poppy123456
    poppy123456 Community member Posts: 49,744 Disability Gamechanger
    Property that you own that is lived in by a close relative that has reached state pension age is disregarded from means tested benefits.
    However, as they are your grandparents then they are not classed as a close relative, according to the link. Please see link and scroll to H2048.
    If it was possible then there could also be problems if you put the house into a trust fund for your children as this could be seen as deprivation of capital and therefore you would still be classed as having the capital. Only a decision maker could give you the final decision on this.
    I would appreciate it if members wouldn't tag me please. I have all notifcations turned off and wouldn't want a member thinking i'm being rude by not replying.
    If i see a question that i know the answer to i will try my best to help.
  • calcotti
    calcotti Community member Posts: 10,011 Disability Gamechanger
    It sounds very likely that you would end up with a capital asset which would end entitlement to means tested benefits.
    Information I post is for England unless otherwise stated. Rules may be different in other parts of UK.


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