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Equity Release and Benefits


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Could someone give me some advice my mortgage is outstanding around 30k and I have positive equity in my home.

 

I am reaching near pension age and currently claiming ESA.

 

If I decide to take out equity release to soley pay off my mortgage would my benefits be stopped.

 

I am in a catch 22 situation what to do and am worried sick. I am under going cancer treatment and dont need this on top.

 

As I would get one payout of say 30k from the scheme to solely pay to keep my house over my head would they stop my benefits.

 

Or is it if they spread the 30K in instalments and treated as income if I was gong to spend it on OTHER things would they only stopped it because of this.

 

REALLY NEED GOOD SOUND ADVICE PLEASE! I AM WORRIED SICK

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income or contribution based ESA

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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Contribution based not affected by savings.

 

Income based would be affected by equity release. Between £6000 and £15999, there is assumed interest earned of about 1.8%. £16000+ and no standard ESA amount would be payable.

 

However, if the money never touched your hands above £16000 and went straight to paying off the mortgage there should not be any effect on ESA.

 

Depends on how it is organised.

We could do with some help from you.

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It is income.....I am looking at ways at avoiding loosing my home.

 

It would be that if I took it out that the mortgage HAD to be paid off straightaway with it. So out from Equity Company straight to mortgage company to pay the house off.

 

No monies would be remaining in my bank account!

 

I am just scared doing it meaning I have no money to live on.

It is to keep a roof over my head.

 

I know in the rules under equity release the monies MUST pay the mortgage company first....

I wouldn't get anything more that the value of the mortgage that is remaining.

Edited by adviceneeded1
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I don't think you would have a problem with DWP if an equity release product was used to pay off your mortgage. It is receiving money directly used to support your day to day living costs that would be an issue and you say this is not your intention.

 

BUT i would question whether you had considered all options and not just thought that equity release provided the easiest way to pay off the mortgage. Equity release can be an expensive option.

 

Have you considered the DWP benefit help with mortgage interest ? Have you asked what help is available ? From April any interest paid would be a loan, that would only be paid off, when any property was sold at a later date. Would the interest DWP pay cover the interest charged by your mortgage company ? I know you are near pension age and wonder what help Government(DWP) can provide with mortgage interest ?

 

Have you spoken to an independent financial advisor or someone recommended by Citizens Advice or Age UK ? If not, I would suggest you obtain advice, before you sign for an equity release product.

We could do with some help from you.

PLEASE HELP US TO KEEP THIS SITE RUNNING EVERY POUND DONATED WILL HELP US TO KEEP HELPING OTHERS

 

 Have we helped you ...?         Please Donate button to the Consumer Action Group

 

If you want advice on your thread please PM me a link to your thread

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