Pistolpete2

If you have less than 16,000 pounds in savings you can claim UK housing benefit for payment of rent.

dunroving

Yes, that was my point, too. Articles about the typical "break-even" period for buying being 5 years (as per Cheer's link) are moot - currently, absolutely if you buy you will likely need to hold on for 5 years (or more). So currently, better to rent. In 2001? Absolutely not.

Most current mortgage rates (new mortgages) aren't that much better than when BOE was about 3% higher, because whereas margins were .5% in 2007, now they are more like 3%-5%, with a large deposit, and fixed-term (so when BOE is at 3-4% again, these new mortgages will suck big-time).

Better to rent at the moment.

Pistolpete2

Unfortunately this greedy bank (like they were ever not greedy ) problem is going to persist for a while yet. There is less lending capacity than there was before the crunch as some players have disappeared, the banks have larger capital requirements to meet stress tests etc. and they are in any event rebuilding their capital bases after the beating most of them took.

With increased borrower default risk their lending cash is typically just side-lined in spite of the Governments "insistence" on their meeting lending targets.

Until we see some big new players in lending, nothing is likely to improve before the overall economy does.

windsong

Even if it is a private property you are renting and not a council property?

dunroving

According to the program last week on the housing rental crisis, yes. They may not pay the full rent but you get a rental allowance (which may or may not pay the full rental amount).

Pistolpete2

See the standard rules, as reported by Tunbridge Wells.

http://www2.tunbridgewells.gov.uk/default.aspx?page=545

I had to go to Bristol City Council to see that Council Tenants go through the same Housing Benefit channels to get relief from rent when in difficulties.

The rules state that if you have already been means tested for Guarantee Pension Credit the 16,000 pound capital limit does not apply*.

*Means testing appears to be on the way out for Pension Credit as in fact is the Pension Credit under the planned new standard pension rules (140 per week for everybody paid up) which are at discussion stage.

windsong

Thank you. So it would be "assistance" at least.

Heavens, the worst may never happen but it is good to know what is available if it did. I am concerned about having myself covered for the first year over there because I am anticipating a few changes - jobs, locations, housing - etc. - might occur within that first year so I want to be prepared.

After the first year, I think I would be fine, though.

windsong

If I were to go over to the UK within the next year, it means I would be going without having paid into the UK pension system at all (except for my first 2-3 years of working there years ago). As such, would I still have to be "means tested" (whatever that means)? I would not be receiving a UK state pension, so I am not sure it would apply to me.

dunroving

Just to clarify, I wasn't commenting on the £16k threshold - Pete gave you the link to look that up. I was just saying that as far as housing benefit is concerned, they don't differentiate between whether you ar renting council housing or the private sector.

There is such a shortage of council housing since Maggie sold off half of the council housing stock that they government can't reasonably differentiate.

dunroving

Means tested for what? Benefits?

windsong

Thank you for clarifying that. It answered my question about the public/private sector.

windsong

For Guarantee Pension Credit since, if I move there within the next 12 months, I will have paid in no additional monies to the pension system. So far I have only paid in during my first 2-3 years of working in the UK - 30 yrs ago.

Perhaps being eligible for Guarantee Pension Credits is something different entirely. I admit to being a bit confused about all this.

Pistolpete2

I only bring up such matters as Pension Credits because there are other people who might be entitled to a pension and therefore Pension Credits checking in on this "public" forum who we have to anticipate. This particularly as we started off with the 16,000 cap on savings.

If you are not near pensionable age it's irrelevant to you.

FYI, I personally always post extra details (if considered appropriate) for general purposes to make it broader use and not just in response to the person I'm quoting.

Pistolpete2

I have to admit that I too am a bit confused about the implementation of the planned new pension rules.

HOWEVER, since I don't go pensionable age until 2016 I will wait until I see the media come out with something definitive later this year.

If they plan to withdraw mean testing and give everybody who has made the 30 years conts a full pension which roughly equates to the current pension plus the pension credit, what happens to those who have not made adequate pension provision? Do they bail them out anyway under some other sort of means testing? If they do, why pay contributions now to catch-up?

Windsong, I don't think you get any State Pension based upon your contributions so it is a valid question as to what the State will provide for you in such circumstances.

General, If one is not working and there is still a while to pensionable age the Class 3 NIConts are expensive at over 12.60 per week so the decision to pay may just be marginal if finances are tight. However, if working, the Class 2 conts are just 2.50 per week.

dunroving

We're getting slightly OT, but for people needing good financial/pension advice, the Which? guides to pensions and personal finance are pretty good (though at the rate things seem to be changing, they'll need to revise it every few months!).

Also, Martin's Money Tips site is an excellent suorce of advice:

http://www.moneysavingexpert.com/