Not used the site for a while a few changes, however hoping someone may have some advice on maybe a more appropriate site or an issue which is unusual for me as most of the tenants i support are on benefits.
A lady who came to me for advice on whether she should give her fulltime job up earning 16,500 pay increase on the cards for 18,000-20,000, they are also sponsoring her to study for Diploma. However, her marriage has broken down and presently undecided about what to do for the best.
Theres a mortgage which costs about 730 a month and monthly payments all in all of £1500. She has 2 children not the children of ex. Apparently if she stays in the home she will be responsible for the mortgage, which she will struggly to keep. Alternatively go into rented which probably won't be much cheaper. If she went on income support then she may well have an element of the mortgage paid for, I know that this is not the route she wishes to take. It seems such a shame that she feels so trapped in her situation. There is about £20,000 - £30,000 value to the house. The mortgage is a fixed mortgage, don't no whether if she changed it to interest only will make much of a difference. Is a lodger a possibility?

Plus there was an over payment on child tax credit which means no payments for another 2 years, obviously this will be reviewed when situation is made official. I don't know if there is anyone out there who has any advice or knows of another site which may be of more use.

Many Thanks

I take it that the mortgage is post 1995 with so little equity in the property.

That being the case, what are the terms of her motgage protection policy as she will need to be on IS for 9 months before mortgage interest is paid.

Going into rented may mean that eventually she has capital of more than £16000 and is therefore disqualified from HB

The overpayment of Tax Credit will remain a problem if she claims IS because of the migration to tax credit of the IS child additions.

Can the Tax Credit overpayment be challenged? If not, what of either top ups or a write off under the code of paractice (you will probably have to get her mp involved as the IR dont seem to know very much about their own code of practice)

I dont see how your client can sustain a £750 per month mortgage for very long on her salary. She might still be able to study for her diploma and claim IS as s single parent, so the IS route may still be a long term option, despite the waiting period

She needs to keep the building society informed of the situation whatever route she takes. They will probably be ok about accepting interest only