ESA and Mortgage Interest Help Needed.

[gregstx]

I get ESA for profound hearing loss and i'm in Work-Related Activity Group for approx 1.5 years now. We have only recently realised we were eligible for mortgage assistance also.

 

ESA sent us the forms and here is where it gets complicated.

 

I get esa for US as a couple, my wife gets a carers allowance for her disabled son.

 

ESA sent the forms in My name but the mortgage is in HER name as she owned her property before she met me. we filled out the forms and mailed them to the mortgage company who promptly forwarded the forms to watford saying i was not their customer.

 

ESA says they cant send the forms in her name and the mortgage company wont accept the forms in my name.

almost seems that switching from ESA in my name to IS in her name would be the easiest option ( or path of least resistance anyway)

 

Any advice would be greatly appreciated.

[MIKEY DABODEE]

Hi Gregstx,

 

you are on the right track, if you wanted to apply for help with your mortgage then your wife would have to be the customer because the mortgage is in her name.

so to do this she would have to claim I.S for you on the grounds of a Carer

But are you on ESA IB or ESA Conts?

 

If its IB then your ESA will cease but if its Conts then it will be treated as an Income.

[gregstx]

Hi Mike, Thanks for the reply and assistance. I get income based ESA and in the work related group. Just to clarify she gets a carers allowance not for me but for her son who is now 17 if it matters. so the ESA would stop i assume? Thanks again.

[MIKEY DABODEE]

Yes if you are on IB ESA it would cease as soon as she makes the claim to I.S.

I.S is income based and so is ESA IB and you cant have both.

 

I dont know what ESA you are on but she would claim I.S as a carer her I.S would be £105.95 couple rate plus £31.00 carers premium minus her CA, I presume its £55.55. = £71.40

so do your calculations.... I am also presuming no capital over 6k.

and the CA doesnt have to be for you

 

Best way would wait to you are paid ESA , next day if you decide to go ahead, she makes the claim to I.S, you close your claim to ESA, should be sorted for next payday....

Your payday may be different for the IS claim as it goes by the last two digits of the nino......

[gregstx]

Hi Mikey, Thanks again. sorry to be redundant. I just want to be certain i give accurate and as complete info as i'm able.

 

I currently get INCOME Based ESA in the work related group. and do permitted work 16 hours. She also works 5 - 7 Hours a week.

 

Is there any permitted work on IS or will this income be deducted from Income Support? and we definitely have NO capital.

[MIKEY DABODEE]

Ok

permitted work, how much do you earn?

your earnings will be taken in against IS pound for pound

 

a partner on IS can work for up to 24 hrs.... you will be the partner

 

and I presume your wife gets the minimum wage.

she will get £20 disregard..

 

so for eg she earns £50 then £30 will come off the I.S total

 

so to get the calc take what you earn off the total..

 

and take your wifes earnings less £20 off as well

phew!

that will leave you with your ent to IS

Edited February 23, 2012 by MIKEY DABODEE

[gregstx]

I earn about 90 a week 16 hours and she makes 50 a week for 7 hours.

[gregstx]

as a side note i find it odd, for my IB ESA they take her earnings away from me.

[MIKEY DABODEE]

ok then £90 will be taken into account for you

and £30 for your wife..

so £120....

Permitted work is treated differently for I.S purposes.

 

you are allowed one disregard on a claim your wife would get it as she is the customer its £20 for a carer..

 

so you are EIOR then

in other words not entitled to any money from IS... but you may be entitled still though to help with your mortgage....

 

maybe at this point you could seek help off CAB.... remember I.S only pays help with the interest on a mortgage I dont know how much interest you pay but CAB could do the calc for you to see if you would be better of on ESA or I.S.....

Edited February 23, 2012 by MIKEY DABODEE

[MIKEY DABODEE]

they would greg..

 

ESA IB is income based like I.S..

 

your wifes PTE is an income that comes into the house hold so has to be taken off.. in other words into consideration

 

but the big difference between the two, is your permiitted work

 

I.S would take all into account in your case

Edited February 23, 2012 by MIKEY DABODEE

[Parbis]

Currently am on ESA, and recently asked help with my mortgage, was sent a form to fill up and part of it need to get it filled by the lender, Will it affect the relation between me and the lender in the future and will it affect my credit record.

Thanks