Financial guidance series

Transcription

1 Financial guidance series

2 About this booklet 1 About this booklet This booklet is for people affected by cancer who are worried about their housing costs. These costs could include rent or mortgage payments. Cancer can increase your living costs in many ways. It can mean: extra transport costs as you travel to and from hospital spending more time at home, which can lead to higher energy bills working fewer hours or not working for a while, causing your income to go down. These things may make it harder to pay your rent or mortgage, or other costs related to your home. Who is this booklet for? This booklet can help you if: you are struggling with rent or mortgage payments you need tips on speaking to your mortgage lender you want to know about benefits that could help with housing costs you need help with energy bills, or paying for home adaptations you are homeless, or worried about becoming homeless.

3 2 Housing costs How to use this booklet In this booklet you will find tips on managing your housing costs. We also tell you about organisations that can help. You don t need to read the whole booklet. Use the contents list on page 5 to find the information you need. Turn to pages for some other useful organisations, and page 100 to write down any notes or questions you may have. For example, these could be questions for your mortgage provider, landlord or energy provider. We ve used the symbols shown below to help certain information stand out: This symbol shows where there are important differences between England, Scotland, Wales and Northern Ireland. A section with this symbol has a summary of what you could do next, to make sure your finances are in order. This symbol means there are important changes you may need to know about. We hope that with the right advice and information, you ll be able to get the help you need with your money worries. Using the glossary We ve tried to make the information in this guide as clear and simple as possible. But some of the words used to talk about housing costs can be confusing. In this booklet we have put some of these words in bold and explained them in the glossary on pages

4 About this booklet 3 Financial help from Macmillan You can call the Macmillan Support Line on We have financial specialists who can help you deal with any money worries: Our financial guides can give you guidance about your personal finance options, such as insurance, pensions, mortgages and tax. Our welfare rights advisers can help you apply for benefits and other financial support. Our energy advisers can help you try to reduce your heating and electricity costs. We can also give you information about Macmillan Grants (see pages for more details). If you re worried about debt, we can refer you to our charity partner StepChange Debt Charity for advice. The Macmillan Support Line is open from Monday to Friday, 9am 8pm. Our financial guides are available from Monday to Thursday, 9am 5pm and Friday, 9am 4.30pm. If you re hard of hearing, you can use textphone , or Text Relay. If you would prefer to speak to us in another language, interpreters are available. Face-to-face support You may also be able to meet a Macmillan welfare rights adviser in person. Visit macmillan.org.uk/in-your-area to see where this service is available near you. Other organisations can also provide support in person, such as your local Citizens Advice (see page 97).

5 4 Housing costs Online financial support tool You can also use our online financial support tool at finance. macmillan.org.uk This includes a quick benefits checker and a benefits calculator. You can use these tools to get an estimate of the benefits you may be able to get. The information in this booklet does not replace financial or other professional advice. For guidance about your own situation, please speak to Macmillan s financial guides. The information about benefits and taxes applies from April 2016 to April Quotes Throughout this booklet we ve included quotes from people affected by cancer who have shared their experiences of managing their housing costs. There are also quotes from Macmillan s financial guides and welfare rights advisers. They are specialist guides and advisers who you can talk to about any money worries you may have (see page 3). Some people find themselves unable to keep up with their regular payments. We can help them with any worries they have. We can go through their income, outgoings and budgeting, and make them aware of what they could reduce, to make sure they ve got more money available. David, Macmillan financial guide

6 Contents 5 Contents Understanding mortgages 7 Keeping up with your mortgage 19 Renting 41 Benefits and financial support 47 Help with energy bills and home adaptations 69 Homelessness 77 Glossary 83 Further information 91

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8 Understanding mortgages 7 Understanding mortgages What is a mortgage? 8 Getting a mortgage when you have cancer 9 Main types of mortgage 11 Other types of mortgage 16

9 8 Housing costs What is a mortgage? Here are some important things to know about mortgages: A mortgage is a loan that is normally used to buy a home or other property. The loan usually comes from a bank or building society. They are called the lender. Most people pay the loan back over a long period of time, usually 25 or 30 years. This time period is known as the term. You normally pay back an amount every month. The lender will add interest on to your loan. This means you pay back more than you borrowed. The loan you receive is called the capital. You repay the capital, plus the interest. A mortgage is secured against the property you are buying until it is paid off. This means that the lender can take back the property and sell it, if you do not keep up with your monthly payments. This is called repossession. But repossession should only be a last option. If you are having financial problems, your lender should help you as much as possible.

10 Understanding mortgages 9 Getting a mortgage when you have cancer When you apply for a mortgage, you should not usually be asked any questions about your health. If your cancer diagnosis does not affect your employment or income, your application should be straightforward. But they may ask if you are expecting your income and spending to change in the future. The lender will need to consider whether you can afford the mortgage payments. To do this, they will check your income and spending when you apply. The lender will need to see evidence of your income, such as pay slips or bank statements. They will look at how much you spend each month on: essentials, such as bills, food and travel non-essentials, such as socialising and holidays. This is called an affordability assessment. The lender will also look at how your mortgage payments would change if interest rates went up. You can go online to find out how much money a mortgage lender is likely to lend you. A mortgage calculator tool is available on the Money Advice Service website at moneyadviceservice.org.uk/en/tools/ house-buying/mortgage-affordability-calculator

11 10 Housing costs You can apply directly to a lender or use an independent mortgage broker. A broker will be able to compare the different mortgage deals available and recommend the best deal for you, depending on your situation. A family member or friend may be able to recommend a broker, or you can find one in your area by visiting one of these sites: unbiased.co.uk findanadviser.org financialplanning.org.uk/wayfinder Mortgage brokers should be approved by the Financial Conduct Authority (FCA). You can check that individuals and companies are on the FCA register by visiting fca.org.uk/register

12 Understanding mortgages 11 Main types of mortgage There are different types of mortgage. The two main types are: repayment mortgages interest-only mortgages. Whichever type of mortgage you have, it s important you keep up to date with your regular payments. Your lender will send you a statement once or twice a year. This will show how much you have paid, the monthly payments that are due, and what is left to pay. Most lenders also have online banking, so you can see the up-to-date details for your mortgage at any time. If you are worried or want to ask questions, always contact your lender. Repayment mortgages This is the most common type of mortgage. Your monthly payments are calculated so that you pay back the capital and the interest on the loan. At the end of the term, you will have paid the mortgage off in full and own your property.

13 12 Housing costs Interest-only mortgages With these mortgages, instead of paying the capital and the interest, you only pay the interest. Monthly payments are cheaper, but at the end you will still owe the full amount of capital you borrowed. This means you need to have a way of paying back the capital when the term ends. It is now very difficult to get an interest-only mortgage. This is because of concerns about people not having a plan for paying the mortgage back at the end of the term. To get this type of mortgage now, you usually need a high income and a large amount of equity in your property. The equity is the difference between what you have left to pay on any mortgage or loan on your property, and what the property is currently worth. However, you might have an interest-only mortgage that was taken out before the new rules applied. If you do, you should have received a letter from your lender reminding you to plan how you will pay back the capital at the end of your mortgage term. You might plan to do this through: an endowment mortgage (see opposite) another type of investment (see pages 14 15).

14 Understanding mortgages 13 Endowment mortgages With endowment mortgages, you usually pay the interest on the mortgage loan over a set period and you pay money into a savings plan. The savings plan is called an endowment insurance policy. The aim is that the money in the endowment insurance policy will pay off the mortgage at the end of the term. The amount of money you get back is called the return. This return is linked to the stock market, which means the money you get back may not be the amount you were hoping for. And there is normally no guarantee that it will pay off your mortgage in full. The endowment insurance policy gives you life insurance. It can sometimes include critical illness cover (see page 33). The endowment insurance policy is not usually with the same company as the mortgage. In the past, some people were sold endowment mortgages when they should not have been. They were given misleading advice. Because of this, endowment mortgages are no longer sold. However, you may have an endowment mortgage you took out some time ago. If so: you need to make sure your endowment insurance policy will pay out enough to cover the mortgage at the end of the term you should receive an annual update on how your endowment insurance policy is performing. If you are concerned that your endowment insurance policy will not pay out enough money to cover your mortgage at the end of the term, you should talk to your lender about your options.

15 14 Housing costs Other investments Some people will have other investments that they plan to use to pay their mortgage. These might include individual savings accounts (ISAs) or a pension. ISAs An ISA is a savings account that can save you money on tax. Each person can save up to 15,240 (for the tax year) in an ISA each year, and the interest you earn is tax-free. There are two types of ISA: Cash ISAs. Stocks and shares ISAs (also called equity ISAs). These are investment accounts. Rather than putting cash into a savings account, you can invest your money in the stocks and shares of companies. You can save the full amount for your mortgage in a cash ISA or stocks and shares ISA, or split your savings between the two. If you save your money in a stocks and shares ISA, you could lose money if the stock market does badly. Cash ISAs are safer, but the returns are usually lower. You should always be aware that the value of investments can go down as well as up, and consider this when investing your money. Your husband, wife or civil partner (but not an unmarried partner) can now inherit your ISA allowances when you die. This means they will get the value of your ISAs added to their own allowance in a one-off increase. They get this increase even if you do not leave the money or investments in the ISAs to them.

16 Understanding mortgages 15 But if you do leave the investments to them, they can take over the ISAs with the investments included if they want to. This may be important if you have a joint mortgage. Pensions Some people may choose to use some of their pension to pay off their mortgage. You can access private pension savings from the age of 55. Since April 2015, pension savers have had more choice about what to do with the money they have saved in their pension. This includes the option to take it out as cash. Be aware that if you use pension savings to pay off your mortgage, you will have less to live on when you retire. If you die before the age of 75 and you have not yet used your pension savings, they can be passed on tax-free in your will. This may be important if you have a joint mortgage. Interest-only mortgages without a planned repayment method Some people may already have an interest-only mortgage without having planned a way to repay the loan. They may decide to: switch to a repayment mortgage sell the property to repay the loan repay the mortgage in the future with money from an inheritance.

17 16 Housing costs Other types of mortgage Equity-release mortgages The difference between what you have left to pay on any mortgage or loan on your home, and what it is currently worth, is called the equity. Equity release allows you to exchange ( release ) your equity for an amount of money. Equity-release schemes are offered as either: lifetime mortgages, which let you borrow money against the value of your home home-reversion plans, where you are offered money for the sale of all, or part of, your home. Lifetime mortgages and home-reversion plans are only available to people aged 55 and over. The mortgage will be paid back when you die or if you go into long-term care. If you sell the home, for example if you want to move somewhere smaller, you may need to pay a fee to have the mortgage paid early. With an equity-release mortgage, you may pay back either: only the interest on the loan during your lifetime no interest during your lifetime, and the interest is added to the outstanding debt, which means the debt that will need to be paid back when you die or sell the house builds up. You can find out more about equity-release mortgages from the Equity Release Council. This is a trade body for this type of mortgage. Visit equityreleasecouncil.com

18 Understanding mortgages 17 Buy-to-let mortgages If you buy a property to let to tenants, you will need to get a buy-to-let mortgage. Whether or not you can get this type of mortgage depends on how much rent you would get if you let the property out, rather than how much you earn in your job. But the lender may also look at other factors to see if you can afford to get the mortgage. These types of mortgage tend to need a bigger deposit than a regular home mortgage. They also have higher interest rates. If you move out of your home temporarily, for example to stay with relatives while you have treatment, your lender may allow you to rent out your property for a set amount of time. This is called consent to let. Not all lenders will give this and some might insist that you change to a buy-to-let mortgage. Letting an entire property without permission from your lender or without a buy-to-let mortgage is not allowed under the terms of most mortgages. Make sure you have all the information you need about the type of mortgage you have or would like to have. You can call our financial guides on if you would like more information about the different types of mortgage available.

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20 Keeping up with your mortgage Insert divider TOC here If you re worried about your mortgage 20 Talking to your lender 21 Tips on talking to your lender 25 What your lender must do 27 What you must do 28 Changing your mortgage 29 Insurance 31 If your illness gets worse 35

21 20 Housing costs If you re worried about your mortgage If you are worried about cancer affecting your mortgage payments, taking action as early as possible is important. If you have concerns: do not ignore the problem talk to your lender as soon as you can check what help you can get, from any benefits (see pages 47 67) and from your lender get free, independent advice from our financial guides on or from the organisations on pages Finding a solution The best solution for you will depend on: the type of mortgage you have your age your personal circumstances whether you can claim any extra financial support the amount of equity in your property. If you are on a low income and qualify for certain benefits, you may be able to get help with your mortgage interest (see page 63). It s important to get expert guidance about your own situation. Contact us or another organisation (see pages 97 99) for more help.

22 Keeping up with your mortgage 21 Talking to your lender If you have a mortgage, you do not have to tell your mortgage lender about your cancer diagnosis. But it s usually better if you do. If you think you will have problems paying your mortgage, tell your lender as soon as possible. You and your lender can work together to find a solution. The sooner you deal with the situation, the more options you will have. Missed payments If you miss one or more payments, this is called being in arrears. If you miss or stop payments, many lenders will charge a penalty. Even one missed payment can negatively affect your credit rating. Most lenders have teams dedicated to helping people worried about missed payments. You should speak to them as soon as you can if you need help. You can also get guidance by speaking to our financial guides. Call our support line on for more information. We can help prepare someone for speaking to any lenders that they have whether that be mortgage related, loans or credit cards. We can explain what options may be available for them as well. David, Macmillan financial guide

23 22 Housing costs If you miss several mortgage payments and don t talk to your lender about it, they could take serious action against you. This could include taking you to court. Eventually, you could lose your home. This is known as repossession, but this would only be a last option for your lender. If you re facing serious action like this, always seek expert advice from your local council. Or you can contact charities such as Shelter, Citizens Advice or StepChange Debt Charity. The contact details for these organisations are on pages Macmillan really helped take the pressure off us. I was very worried about paying the mortgage and we also had council tax arrears and were dealing with the bailiff. Macmillan helped us negotiate with the council, who agreed to call off the bailiff and accept a reduced monthly payment. Charles

24 Keeping up with your mortgage 23 Options your lender may suggest Depending on your situation, your lender might suggest ways to help you manage your payments. These may include the following: Reducing your mortgage payments for a set period of time. Changing your repayment to interest-only payments for a set period of time. Remember, you won t be paying off the loan if you do this. You will only be paying the interest. Your payments will also be higher when you start paying again. Allowing you to take a break from paying your mortgage. Some mortgage contracts include the ability to take a payment holiday (see page 24). Extending the term of your mortgage, so you pay less each month. But it will take you longer to pay off the full mortgage. Changing the interest rate you pay. Adjusting your monthly payments to cover any payments you have missed. This might mean you pay more each month, so that you can still pay the total amount owed within the original term.

25 24 Housing costs Payment holiday This term is often included in your mortgage contract, especially if you have a flexible mortgage. It involves taking a temporary break from making your regular mortgage payments. If a payment holiday is included in your mortgage deal, you won t have to make any payments during the agreed period. The payment holiday won t affect your credit rating. When you take a payment holiday, usually the payments you miss are added to the total balance of your mortgage. This means your monthly payments may go up slightly when you start repaying again. If you ask your lender for a payment holiday and it isn t included in your mortgage deal, they may say no. But you should ask whether they ll let you make nil payments for a short period. This means you won t be making any payments towards your mortgage. If you can prove you can start making full payments again after the break, this will help your lender decide whether they can help. You should also ask whether making nil payments would affect your credit rating. The second time I was diagnosed, I had to be off work for a long period and I was having real financial difficulties. I didn t have any insurance to pay my mortgage and my partner wasn t working either. But Macmillan told me I could negotiate with my mortgage lender a two-month mortgage holiday. Alan

26 Keeping up with your mortgage 25 Tips on talking to your lender Your lender can talk to you about your personal situation and the options available. If you prepare some information before calling, the conversation will be easier. Preparing for your conversation Before you speak to your mortgage lender, try to do the following: Check whether you have an income-protection insurance or mortgage payment-protection insurance policy (see pages 31 32). Check whether you can claim any benefits that may increase your income (see pages 47 67). Have details of your income and your outgoings. It is important to make sure these details are correct and realistic. Check your bank statements and look at what you spend on things like food shopping and gas and electricity bills. Think about how much you can afford to pay. Make sure this amount is realistic. Leave yourself enough money for food, heating and other essentials. Have details of your diagnosis and the expected outcome of your cancer (your prognosis).

27 26 Housing costs During the conversation When you speak to your lender, it may be helpful to talk about these following points: Find out whether your lender has a specialist team for helping vulnerable people. Tell your lender about your cancer diagnosis. For example, the type of cancer you have and what treatment you are having (or are going to have). Tell them about how the cancer and its treatment are affecting your everyday life. You do not have to tell them anything you are not comfortable sharing. If you can, tell your lender how the cancer has affected your income and your ability to manage money. You could also tell them how your situation affects your ability to deal with them. For example, you might not be able to talk on the phone for very long, or at certain times. Or your medication may affect your memory. You could tell them if someone is helping you deal with your money issues. If they know about these things, they ll be able to work with you in a way that better suits you. Tell your lender when you expect your finances to return to normal, if you have an idea of when this might be. Let them know about any claims you have on insurance or pension policies, or if you are planning to make any claims. If your lender suggests ways to help you, ask how this will affect your mortgage payments when that help stops. You could also ask what you can do to stop your credit rating being negatively affected.

28 Keeping up with your mortgage 27 What your lender must do Your lender must follow a set of rules to help you keep your home. These are called a pre-action protocol in England, Wales and Northern Ireland. They are called pre-action requirements in Scotland. Your lender will need to: tell you the exact amount you owe and any interest charges you ll have to pay listen to any request from you to change how you pay your mortgage respond to any offer of payment you make. If you continue to struggle with paying your mortgage, your lender has to: explain why within 10 working days, if they refuse your offer of payment give you at least 15 working days written warning if they plan to start court action, which would be because you haven t kept to a repayment agreement, but starting court action would only be a last option.

29 28 Housing costs What you must do When dealing with your mortgage payments, you must: be willing to give your mortgage lender written evidence of your health issues show you are willing to make repayments of an amount that you can afford pay what you can, when you can even if you can t afford your full monthly mortgage payments at the moment get a written copy of any repayment arrangements you make with your lender keep in regular contact with your lender and tell them if your situation changes.

30 Keeping up with your mortgage 29 Changing your mortgage If you have lots of other debts as well as your mortgage, you may be tempted to add these debts to your mortgage by: remortgaging (taking out another mortgage) with a new lender taking out a further advance with your current lender, which is when you borrow more from them, usually at a different rate to your main mortgage. You may also be tempted to: take out a secured loan on your property take out a consolidation loan (see page 30). Remortgaging or a further advance may let you clear your debts in the short term, but it can also be risky. Even if the interest rate is lower, it may still be difficult to afford payments. The low interest rate may only last for a few years, and your payments may increase at the end of that period. It can also affect whether you qualify for help towards the payment of the interest through any benefits. You may also have to pay fees to increase your mortgage or move to another lender. Lenders must check that you can afford your mortgage repayments. You may be refused a new mortgage even if you think you could manage the repayments. You should speak to your current lender and ask how they can help you first, before trying to get a new mortgage. If you still think you want to change your mortgage, you should speak to an independent mortgage broker before making any decisions.

31 30 Housing costs A family member or friend may be able to recommend a broker, or you can find one in your area by visiting one of these sites: unbiased.co.uk findanadviser.org financialplanning.org.uk/wayfinder If you are thinking about changing your mortgage because you are struggling to repay debts, you should get free, independent advice first. You can get this from an organisation such as Shelter or StepChange Debt Charity (see pages 97 98). Debt-consolidation loans These loans put all your different debts together into one loan. The idea is to try to lower your monthly payments. You borrow enough money to pay off all your current debts and then you owe money to just one lender. This type of loan was common in the years leading up to the financial crisis of They are now less common. You should be careful with this type of loan. They can often be dangerous and lead to even more debt. These loans are often secured against your home. This means if you cannot keep up with the loan repayments, your home will be at risk. You need to be sure this type of loan will cut your spending and help you get back on track. Otherwise you could end up being in even more debt. You can get support by speaking to one of our financial guides. Call our support line on for more information. Our guides can refer you directly to the vulnerable customer team at StepChange Debt Charity.

32 Keeping up with your mortgage 31 Insurance Checking your insurance It s important to check any health or life insurance policies you have. Your situation may mean you could get some money from your insurer. This is called a payout. A payout could help you with your mortgage or other housing costs. Mortgage payment-protection insurance This type of insurance may have been offered when you first arranged your mortgage. It pays your mortgage payments (and sometimes a bit extra) if you re unable to work due to an accident, sickness or redundancy. The amount it pays out depends on how much insurance cover you originally paid for. Some people may not be aware that they have this cover, so make sure you check with your mortgage provider. If you do have mortgage payment-protection insurance, you should make a claim as soon as possible. The payout usually starts after a waiting period of one or two months, but it can be longer. This is known as the period of notice. With some policies, payments are backdated to the first day you stopped working. This is sometimes called back-to-day-one cover. Mortgage payment-protection insurance can be useful in the short term. But it usually only pays your mortgage for up to about one year. It s important to keep up the mortgage payments after that to avoid any risk of losing your home.

33 32 Housing costs With some mortgage payment-protection insurance policies, you have to keep paying the premiums (the monthly payments for having the policy) even while you are claiming. Make sure you know whether your policy says you need to do this. Income-protection insurance This pays out a monthly income if you are unable to work because of illness or disability. You might have income-protection insurance through your work. Check with your HR (human resources) department. If you do have it, your employer will deal with the claim. The payout is paid to you like ordinary pay, with tax and National Insurance taken off. If you have taken out your own income-protection insurance, you will have chosen the level of income it pays out. You will also have chosen a waiting period. This is a delay between the start of the illness and the start of the insurance payout and may be from one month to two years. You do not have to pay tax on a payout from a policy you have arranged yourself. The insurance usually carries on paying out until you either return to work or reach retirement age, whichever comes first. But some policies only pay out for a maximum term. This could be five years, or less for short-term policies. Some policies pay out less if you are able to return to work part-time. Remember to check whether you need to keep paying the premium while you claim. If you claim benefits, they might be affected by an incomeprotection insurance payout. Or your payout may be affected by the fact that you get benefits. Speak to one of our financial guides on for more information.

34 Keeping up with your mortgage 33 Critical illness cover This pays out an amount of money (a lump sum) that is tax-free if you are diagnosed with certain life-threatening health conditions. You may have bought critical illness cover on its own, or it might be combined with life insurance. When it s combined with life insurance, this is sometimes called life and critical illness cover. Sometimes your employer will provide critical illness cover as a benefit. You should check with your HR department to see whether your company offers this. Not every cancer diagnosis is considered life-threatening, so not everyone diagnosed with cancer will be able to get a payout under critical illness cover. Check the wording of your policy to see which cancers are covered. If the wording is not clear, contact your insurer. Even if your cancer does not cause a payout on your critical illness cover by itself, you may still be able to claim. If you are left disabled and won t be able to go back to work, you may be able to claim. This would be under the total and permanent disability section of your insurance policy. Depending on the policy, this might apply if you cannot do: the same work as before similar work any work a specified number of work-related tasks.

35 34 Housing costs Life insurance Life insurance is a type of insurance that pays out when you die. Sometimes it only pays out if you die during a certain period of time. Life insurance is helpful for two main reasons: It can pay off debts left behind, such as a mortgage. It can provide money for your family. Many life insurance policies include terminal illness cover. This means the insurer will pay out the full amount of the cover straight away if you are expected to live less than 12 months. You can keep the payout even if you live longer. You can use the money for any purpose. You should check with your insurer to see whether this benefit is included in your policy. Employers may offer life insurance to employees. This cover is usually available to every employee (up to a set value), whatever their state of health. Speak to your HR department at work to find out more. Your employer might offer a type of life insurance called death-in-service benefit. This benefit guarantees a lump-sum payout if you die while working for that employer. You can usually choose who you would want this payment to go to. These are known as your beneficiaries. However, sometimes death-in-service payouts go into a discretionary trust. This means you can t choose exactly who will benefit. If you are thinking about giving up work due to illness, it s important to check with your employer what would happen to any life insurance cover they provide. If you have questions about your insurance policies, contact your insurer. You can also speak to our financial guides by calling

36 Keeping up with your mortgage 35 If your illness gets worse Many people with cancer recover, and treatments are getting better all the time. But if there is a chance that your illness may get worse, it can help if you have planned ahead. Ill-health retirement If you are terminally ill, or unable to return to work, you may be able to take something known as ill-health retirement. This is where you can start claiming a private or work-related (occupational) pension early. If you are not retiring, you might still be able to use your pension to help you pay your mortgage. Since April 2015, as long as you are aged 55 or over, you can now draw out your pension savings as one or more lump sums whenever you like. You can do this whether you are retiring, reducing your work hours or continuing to work as normal. It s important to know that at least part of any lump sum will be taxed. Anything you draw out now will mean you have less income when you do retire. So think carefully before using your pension in this way. Call our financial guides on to find out more about your options. We have more detailed information in our booklet Pensions. You can order a free copy from be.macmillan.org.uk

37 36 Housing costs If you need long-term care If you go into a care home or hospice, but your spouse or a dependant is still living in your home, they will be allowed to stay there. Your spouse is the person you are married to, or in a civil partnership with. A dependant is someone who relies on you for support or income, for example a child or an adult with care needs. Your local council (in England, Scotland or Wales) or Health and Social Care Trust (in Northern Ireland) may be able to pay for your stay in a care home, under certain conditions. But it is up to individual councils to decide what help they offer. Levels of support are different in England, Scotland, Wales and Northern Ireland. If you don t live with anyone, you can give legal permission in advance for a relative, partner or carer to rent out your property for you. With the correct permission, they may also be able to arrange for your home to be sold. The money can be used to cover your long-term care fees. Your local council or trust may agree to lend you the money for the care home fees. This would be repaid once your home has been sold. This is called a deferred payment agreement. Our booklet Your life and your choices: plan ahead explains more about planning what you want to happen if you become seriously ill. There are different versions for England and Wales, Scotland, and Northern Ireland. You can order a free copy from be.macmillan.org.uk or by calling

38 Keeping up with your mortgage 37 If you die If you die, your house (or your share of it) will be part of your estate. This is everything you own when you die, including money, property and possessions. However, if you have a mortgage or loans secured on the property, this will be taken from the estate. If you have a will, your estate will be given out to others in the way you stated. If you don t have a will, the law says how your estate should be given out. If you have no will, your house (or share of it) may be passed on to: a married or civil partner close relatives, such as parents, children, brothers or sisters. A partner you live with but are not married to cannot inherit from you without a will. If you have not divorced your spouse, they will still inherit, unless your will says who you want your estate to be passed on to instead. Who your estate is passed on to depends on your situation and where you live. To find out the exact rules about who will inherit what if you die without a will in your country, use the online tool at gov.uk/inherits-someone-dies-without-will

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40 Keeping up with your mortgage 39 If you own your home with someone else If you own your home jointly, depending how you own it, your share may pass automatically to the other owner(s). Joint tenancy or joint ownership is where everyone who owns the property has an equal share. When you die, the survivor(s) inherit your share. Under this option, you cannot give your share of the property to another person through a will. But your share still counts as part of your estate, for example when working out inheritance tax. Joint tenancy is the most common arrangement for owning a residential property. In Scotland, having a joint tenancy is known as having a survivorship destination and people with a share are called joint owners. Tenancy in common or commonly owned property is where each owner holds their own individual share of the property, and the shares don t have to be equal. This means that when you die, your share becomes part of your estate and is distributed according to your will or the law. Call us on for information about planning ahead and to find out how we can support you.

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42 Renting Keeping up with your rent 42 Your rights while renting 43 Insert divider TOC here Your responsibilities while renting 45

43 42 Housing costs Keeping up with your rent You may be renting from: a private landlord your council in England, Scotland or Wales, or the Housing Executive in Northern Ireland an organisation that rents to people with a low income or who have certain needs (a housing association). If you think you might miss a rent payment or have missed one already, it s important to speak to whoever you rent from as soon as possible. They may be willing to make an arrangement with you where you gradually pay off what you owe. Make sure this arrangement is affordable, so you can continue with it. Explain your situation to your landlord if you can. This is likely to delay or prevent them trying to remove you from the property (evict you). It s often in their own interests to keep you renting. Finding someone new could take time and be expensive for them. Make sure you agree with your landlord about how much you owe. You can ask your landlord for a statement of your rent. Their statement and your records should show the same thing. If you are eligible for any benefits that could help cover your rent costs, such as Universal Credit or Housing Benefit (see pages 47 67), you should apply as soon as possible. Benefits can only be backdated to cover up to one month before you applied.

44 Renting 43 Your rights while renting The information over the next few pages is about renting from a private landlord. If you rent from your council (in England, Scotland or Wales), the Housing Executive (in Northern Ireland), or a housing association, the law may give you more protection than people who rent privately. To find out more, visit: gov.uk/council-housing (in England, Scotland or Wales) housingadviceni.org/advice-housing-executive-tenants (in Northern Ireland). Private renting Most people who rent privately sign an assured shorthold tenancy agreement (AST) with their landlord. This is a contract that gives you and your landlord certain rights. If you rent a room in a house and the landlord also lives there, you are their lodger. This means you will have a lodger or licence agreement with different rights and responsibilities. Everyone who rents a property has certain rights, even if they do not have a tenancy agreement. These rights can be different across the UK (see page 44).

45 44 Housing costs Your rights with AST renting When renting with an AST, you have the following rights: To live in a property that is safe and in a good condition. To have your deposit returned when the tenancy ends, as long as you meet the terms agreed when you paid the deposit. To have your deposit put in a government-backed protection scheme. This should be done by your landlord. To challenge excessively high charges. This applies in England and Wales. People in Scotland don t usually have this right. People in Northern Ireland don t have it. To know who your landlord is. To live in the property without being disturbed. To see an Energy Performance Certificate (EPC) for the property. To be protected from unfair eviction. This is called illegal eviction and harassment in Scotland. To be protected from unfair rent. This does not apply in Northern Ireland. In England and Wales, to have a written agreement if you have a fixed-term tenancy of more than three years. In Scotland, to get a tenant information pack if you are renting under an assured or short-assured tenancy. The landlord should provide this. The pack is supported by a website that offers practical help on private renting for tenants and landlords. Visit rentingscotland.org In Northern Ireland, there is no right to have a written agreement but you must receive a tenancy statement. For more information, visit housingadviceni.org/adviceprivate-tenants/rent-book-and-tenancy-statement

46 Renting 45 Your responsibilities while renting There are also things that you must do while renting from a private landlord. These include the following: Taking good care of the property. Paying the rent you have agreed to with the landlord. Paying other charges as agreed with the landlord. This may include council tax (rates in Northern Ireland), or gas and electricity bills. Only subletting a property if the tenancy agreement or landlord allows it. Subletting is when you lease all or part of a property you are renting to someone else. For more information about your rights and responsibilities while renting from a private landlord, visit: gov.uk/private-renting (England, Scotland or Wales) nidirect.gov.uk/renting-a-home-privately (Northern Ireland) housingadviceni.org/advice-private-tenants (Northern Ireland) Talk to your landlord if you are struggling with your rent. Check whether you are entitled to benefits that could help you pay your rent or other expenses. There s more information about benefits that may help with housing costs on pages

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48 Benefits and financial support The benefits system 48 Universal Credit 50 The benefit cap 55 Housing Benefit 57 Help with council tax in England, Scotland and Wales 61 Help with rates in Northern Ireland 62 Help with mortgage interest 63 Help with service charges 64 Macmillan Grants 65

49 48 Housing costs The benefits system Benefits are payments that the government gives to people who need financial help. Benefits can help if you: have a low income are unable to work have care needs are in another difficult financial situation. This chapter explains some of the benefits that can help with housing costs. Our booklet Help with the cost of cancer gives more detail about other benefits you may be entitled to. There is a separate version for Northern Ireland. You can order these from be.macmillan.org.uk or by calling Changes to the benefits system The benefits system in England, Scotland and Wales is changing. The changes were brought in by a new law called The Welfare Reform Act in Some benefits are being phased out and replaced by new benefits. It s good to be aware of these changes, in case they affect you. These are the key changes: A new benefit called Universal Credit is being introduced. This will replace Housing Benefit and some other benefits. An under-occupancy rule is in place. This is also known as the bedroom tax (see page 59). There is an upper limit for how much money you can claim in benefits. This is known as the benefit cap. (see pages 55 56)

50 Benefits and financial support 49 To read more about the Welfare Reform Act 2012, visit macmillan.org.uk/benefits Universal Credit currently only applies in England, Scotland and Wales, but there are plans to introduce it in Northern Ireland in the near future. Macmillan helped me a lot with claiming benefits, like the Disability Living Allowance. They got all the forms and helped me fill them in too. Alan

51 50 Housing costs Universal Credit Universal Credit (UC) is a new benefit in England, Scotland and Wales. It is for people below State Pension age who are out of work or on a low income. Benefits being replaced by UC UC is replacing six other benefits: Income Support Housing Benefit Child Tax Credit Working Tax Credit Universal Credit Income-based Job Seeker s Allowance Income-related Employment and Support Allowance UC is one single benefit. It is made up of a standard monthly rate (see pages 51 52) and extra payments (called elements). The extra elements you get will depend on your situation (see page 52).

52 Benefits and financial support 51 Who can claim? To claim UC, you must: live in an area where UC is available be aged 18 or over (or 16 or over in certain cases) not be in education accept an agreement called a claimant commitment (see below). If you have a partner, you will need to claim together. If your partner does not meet the requirements for UC, they will not affect the amount of UC you get. But both of your savings, income and earnings will be taken into account. Claimant commitment Your claimant commitment is a record of the things you have to do in order to get Universal Credit. This might include things like how you will look for work. You will agree to the commitment with your local Jobcentre Plus. It will usually be put into writing when you apply. The claimant commitment is based on your individual situation. How much you get These are the standard monthly rates for UC: Person claiming Monthly allowance rate Single person aged under Single person aged 25 or over

53 52 Housing costs Person claiming Monthly allowance rate A couple aged under A couple aged 25 or over Extra payments (elements) As well as the standard monthly rate, depending on your situation you may also get the following: The child element if you are responsible for a child who lives with you. This is generally a child under 16. In some cases it could be a young person aged 16 to 19 if they are in full-time education or doing certain training. Extra money is added if the child or young person has a disability. From April 2017, the child element will be limited to two children for each person claiming UC. The childcare element if you pay for childcare while you re working. The carer element if you look after someone who is severely disabled. The limited capability for work elements. There is one element for people with a limited ability to work. There is another for people who also have a limited ability to do work-related activities. This might include writing a CV or going to a training course. New claims made after April 2017 won t get an extra amount for work-related activities. The housing element helps with your rent, service charge or mortgage payments.

54 Benefits and financial support 53 UC and your home UC is not available everywhere yet and is being gradually introduced in different areas. You cannot claim UC and Housing Benefit at the same time. To find out which one you should claim, visit gov.uk/jobcentres-where-you-can-claim-universal-credit If you are currently receiving Housing Benefit, your claim will be transferred to UC. When this will happen depends on where you live. The Department for Work and Pensions (DWP) will contact you to change your claim. You don t need to do anything until then. The amount of money you get will not change if your circumstances stay the same. If you rent Under UC, you are responsible for paying your rent to your landlord. Instead of Housing Benefit, you will get the housing element (see opposite) as part of your UC payment. You must make sure your landlord gets the rent on the right date. Your UC will be paid to you once a month. If your rent is due every week, you may need to think about this when you are organising your budget. The housing element of your UC may not cover all of your rent. You will be responsible for covering any extra rent that is due.

55 54 Housing costs If you have a mortgage If either you or your partner, or both of you, own the home you live in and neither of you are earning an income, you may be able to get help with your mortgage through UC. This is called Support for Mortgage Interest. It will be paid directly to your mortgage lender. See page 63 for more details about help with mortgage interest. If you are a leaseholder If you are a leaseholder and have to pay service charges, you may be able to get help with them through UC. Not all service charges qualify, so it is important to check whether you can get support. You should also make sure you get bills from the freeholder or property management company showing any service charges you are paying. How to claim Our welfare rights advisers can help you find out if you could get UC. Call them on You can also make a claim online by visiting gov.uk/apply-universal-credit You can also call the DWP Universal Credit helpline on

56 Benefits and financial support 55 The benefit cap There are new limits to how much you can get in benefits each week. This is called the benefit cap. Some benefits are not included in the benefit cap. This includes Personal Independence Payment, Attendance Allowance and Working Tax Credit. The government has also said that it plans to change the benefit cap so that people getting Carer s Allowance are not affected by the cap. Visit gov.uk/benefit-cap or speak to a welfare rights adviser to find out which benefits are not affected. If you get any of these benefits, the benefit cap will not apply to you. The benefit cap will also not apply to you if you live with your child or partner and they get any of these benefits. But you may still be affected by the cap if the people living with you who get these benefits are grown-up children or people who don t depend on you financially (non-dependants). If you were working for 50 out of 52 weeks before you claimed benefits, you may be exempt from the benefit cap for up to 39 weeks. The benefit cap is due to change after autumn The date when this will happen has not been decided at the time of writing. We explain more about the amount of benefits you can get before and after autumn 2016 on the next page.

57 56 Housing costs Before autumn 2016 If the benefit cap applies to you, the total amount of benefits you can get from April 2016 to autumn 2016 is: 350 a week if you are single and don t have children who live with you 500 a week if you are single and have children who live with you 500 a week if you are a couple. After autumn 2016 If you live outside of London, the cap will be a week if you are single or if you are a couple or have children. If you live in London, the cap will be a week if you are single or if you are a couple or have children.

58 Benefits and financial support 57 Housing Benefit Universal Credit (UC) may not be available where you live. If it is not available, you can still claim Housing Benefit. This could help with rent payments if you have a low income. Who can claim? You can claim Housing Benefit whether you live in social housing or rent from a private landlord. You must: have a low income have savings of less than 16,000 (unless you receive Pension Credit) live in an area where UC is not available yet (if UC is available in your area, you should claim that instead if you and your partner are below State Pension age). Most full-time students are not eligible, but there are exceptions.

59 58 Housing costs How much do you get? The amount of Housing Benefit you may get will depend on: where you live your age who lives with you and their income the number of bedrooms in your home your and your partner s income and savings any other benefits you get your rent the Local Housing Allowance rates, if you are renting from a private landlord (contact your local council to find out more about these rates). How to claim Housing Benefit is organised by your local council (in England, Scotland or Wales) or the Housing Executive (in Northern Ireland). You can contact them to apply. Limits for single people aged Single people aged who rent from a private landlord can only get the Housing Benefit shared accommodation rate. In this case, a single person is someone who: is not living with someone as a couple doesn t have dependent children.

60 Benefits and financial support 59 The shared accommodation rate is the amount you would get if you were renting a single room in a shared house. It is based on local rent costs for shared properties. Even if you are not in a shared house and are renting a place on your own, you are still only entitled to the shared accommodation rate. Under-occupancy rule (bedroom tax) in England, Scotland and Wales Some people will have their Housing Benefit reduced if their home is considered too big for their needs. This rule is called the under-occupancy rule or bedroom tax. You may be affected if all the following apply to you: You live in a council or housing association property. You have a spare bedroom. You are of working age. At the moment this does not apply in Northern Ireland. It is expected that it will be introduced there in the near future. There are some exclusions: If you are getting State Pension or Pension Credit, you will not be affected. If you have a bedroom used by an overnight carer, you may also be excluded in some cases. If you live in England, Scotland or Wales, the benefit cap (see pages 55 56) may also affect the total amount of benefits you get, including Housing Benefit. Speak to one of our welfare rights advisers on if you think this may affect you. You may be able to claim a Discretionary Housing Payment (see page 60) to cover bedroom tax costs.

61 60 Housing costs Discretionary Housing Payments Your Housing Benefit may not cover all your rent. If you are having problems paying the rest of your rent, you may be able to claim a Discretionary Housing Payment. This can be claimed from your local council (in England, Scotland or Wales) or the Housing Executive (in Northern Ireland). It is only paid for a set time, although you can apply again if you need to. The amount you get will depend on your situation. If you think you may be eligible, contact your local council or the Housing Executive.

62 Benefits and financial support 61 Help with council tax in England, Scotland and Wales Council Tax Benefit has been replaced by Council Tax Reduction (sometimes called Council Tax Support). You may be able to get a discount on the amount of council tax you pay. In England, each local council has its own council tax reduction scheme. In Scotland and Wales, there are national council tax reduction schemes. This means the discounts are the same across Scotland and Wales. In some areas, councils also have discretionary funds for council tax. This means they can help some people with their council tax payments. These schemes have different names in different areas. How to claim Contact your local council to find out what support they offer. You should be able to find your council s contact details in your local phone book, or you can visit: (England) (Scotland) (Wales).

63 62 Housing costs Help with rates in Northern Ireland If you can t afford to pay your rates bill, contact Land & Property Services on You should contact them as soon as possible. Before calling, make a list of all the money you have coming in (income). You should do the same for anyone living with you. This includes any benefit payments. There are a number of options available to help you pay your rates bill, including Housing Benefit and Rate Reduction. Visit nidirect.gov.uk to find out more.

64 Benefits and financial support 63 Help with mortgage interest You might be able to get extra help with your mortgage interest payments if you claim: income-related Employment and Support Allowance Income Support income-based Jobseeker s Allowance Pension Credit Universal Credit (see pages 50 54). If you are of working age, there is a waiting period of 39 weeks (around nine months) between first claiming the benefits above and being able to access the extra help with housing costs. Help with mortgage interest only applies to a maximum mortgage of 200,000. If you are of pension age, there is no waiting period, but the maximum mortgage is 100,000.

65 64 Housing costs Help with service charges If you are a leaseholder, you may pay service charges on your property. These can include bills for minor repairs and maintenance. You might be able to get help with these charges if you claim: income-related Employment and Support Allowance Income Support income-based Jobseeker s Allowance Pension Credit Universal Credit (see pages 50 54). Not all service charge types will be covered. It s best to get advice about whether or not your services charges can be covered by a benefit payment, or if there are any other grants you could apply for. Call our support line on to speak to an experienced welfare rights adviser.

66 Benefits and financial support 65 Macmillan Grants These are small, mostly one-off payments to help people with costs caused by or related to their cancer. Everyone s practical needs are different, so grants are available for a variety of things. Whether you need extra clothing, help paying heating bills or even a relaxing break, you may be entitled to a Macmillan Grant. How much you receive will vary depending on your circumstances and needs, but the average grant is around 400. A grant from Macmillan would not normally affect the benefits you are entitled to, but this will depend on your situation. It is an extra bit of help, not a replacement for other forms of support. Who are they for? You can apply for a Macmillan Grant if you have cancer, or are still seriously affected by your illness or treatment, and both of the following apply: You have less than 6,000 in savings if you are single, or less than 8,000 as a couple or family. You have a low total income once rent, mortgage and council tax have been paid*. We allow a weekly net income of 170 for a single person, 289 for a couple or household of two people, 85 for each child, and 119 for each additional adult. *Please note that Personal Independence Payment, Disability Living Allowance and Attendance Allowance do not count as total income in our calculations. While these are the general criteria, we do take individual circumstances into account, so please contact us.

67 66 Housing costs How to apply We aim to make our application process as simple and quick as possible: 4 Apply through a health or social care professional. This may be a social worker, a district nurse or a Macmillan nurse if you have one. The health or social care professional will fill in a grant application form with you and send it to the Grants team at Macmillan. They will also include a short medical report from your specialist nurse, doctor or consultant. The Macmillan Grants team will process your application on the day they get it. If your application is approved, payments are generally sent out within three working days. Any personal or medical information included in your application will be treated confidentially. Every week, more than 600 people get a grant from Macmillan. If you have any questions about Macmillan Grants or if you are having problems getting someone to fill in an application form with you, please contact us on

68 Benefits and financial support 67 Call to speak with one of our experienced welfare rights advisers. They can guide you through the benefits system and help you find out what benefits you can apply for. You can also visit gov.uk (England, Scotland or Wales) or nidirect.gov.uk (Northern Ireland) for information about benefits. The welfare rights team can look at your financial situation and give guidance on the benefits system. We can also tell you what benefits you re eligible to make a claim for and how to make that claim. You can call us if you need help with completing any of the application forms, so that you can increase your income. We offer a personalised service that is tailor-made to an individual s needs. Helen, Macmillan welfare rights adviser

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70 Help with energy bills and home adaptations If you re worried about your energy bills 70 Help with your energy bills 71 Saving energy around your home 73 Home adaptations 74

71 70 Housing costs If you re worried about your energy bills If you are having trouble paying your energy bills, contact your energy supplier as soon as possible. If they know you are living with cancer, they should register you as a vulnerable customer. This should give you access to free, extra services. It should also mean your energy supply won t be cut off if you fall behind on your payments. Many people may not be aware that when you have cancer, you tend to feel the cold a lot more even in the summer months especially if you are recovering from an operation or are having chemotherapy. And your body is easily affected by the cold when it s fighting disease. Julian

72 Help with energy bills and home adaptations 71 Help with your energy bills There are schemes that can help if you are struggling to pay energy bills. They are run by governments and energy suppliers. Different schemes are available in different parts of the UK. You can see which ones may be available to you below. The Energy Company Obligation (England, Scotland and Wales) This is a UK Government policy. It helps vulnerable customers and people on a low income to heat and insulate their homes. Contact your energy supplier to find out whether this could help you. The Warm Home Discount (England, Scotland and Wales) This gives some people money off their electricity bills. The discount is given once a year, usually between September and March. The discount you get is fixed at a certain amount each year. Visit gov.uk/the-warm-home-discount-scheme or call Home Energy Efficiency Programmes (Scotland) This is a scheme from the Scottish Government. It offers a range of help, including extra income and discounted bills for some people. Visit energysavingtrust.org.uk/scotland

73 72 Housing costs Nest (Wales) This is a Welsh Government scheme. It gives advice and support to help people reduce their energy bills. You can have energy-saving improvements made to your home for free. Visit nestwales.org.uk Energy Wise (Northern Ireland) This gives information about energy-saving grants available in Northern Ireland. You can also get tips and advice by visiting nidirect.gov.uk/energy-wise Other schemes in Northern Ireland People in Northern Ireland can also call the Bryson Energy Advice Line on Your energy company may also run its own schemes. Contact it to find out more.

74 Help with energy bills and home adaptations 73 Saving energy around your home There are schemes that can help you get free or discounted insulation or draught protection. This can help lower your heating bills. For more information, and advice about lowering your energy bills, contact: the Energy Saving Trust (visit energysavingtrust.org.uk or call ) the Home Heat Helpline (visit homeheathelpline.org.uk or call ) Home Energy Scotland (call ). We also have a leaflet about how to manage your energy costs. You can order a free copy from be.macmillan.org.uk or by calling us on

75 74 Housing costs Home adaptations If you need to repair, improve or adapt your home for any health reasons, you can get help paying for this. For example, you could apply for help to install a stair lift or ramp, or to put in central heating. This help includes Disabled Facilities Grants. For more information: in England, Scotland or Wales, contact your local council or visit gov.uk/disabled-facilities-grants in Northern Ireland, contact your Health and Social Services Trust or visit nidirect.gov.uk/articles/adapting-your-home There are also some grants to help people improve the heating systems and insulation in their homes. These are mainly for people who are disabled, on a low income or over 60 years old. See pages for information about grants from Macmillan. Contact your energy supplier and explain your situation to them. Ask them how they can support you. Try to look into schemes that could save you money on energy costs. If you need to make home adaptations, contact your local council or trust to ask if they can help.

76 Because I was at home during the day, I had the heating on a lot and my bills practically doubled. Financially, things were tough. Luckily, Macmillan were there to help me. Julian

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78 Homelessness What is homelessness? 78 Getting help 79 Insert divider TOC here

79 78 Housing costs What is homelessness? Even if you have a place to live, you can still be homeless. You may be legally classed as homeless if you are: temporarily staying with family or friends staying in a hostel or night shelter living in very overcrowded conditions at risk of violence or abuse in your home living in poor conditions that are affecting your health. If you are homeless or think you might become homeless, you should contact your local authority as soon as possible.

80 Homelessness 79 Getting help Help from the government Local authorities may give advice, or provide housing. What they offer will depend on the situation. To get support: in England, Scotland or Wales, contact your local council you can find their details in the phone book or visit gov.uk/find-your-local-council in Northern Ireland, contact the Northern Ireland Housing Executive on If you are at risk of becoming homeless because you are struggling with mortgage payments, you should ask for support. Your local council or the Housing Executive may have schemes to help you. If you are homeless, you still have the right to claim benefits. Call our welfare rights advisers on to find out what you could claim.

81 80 Housing costs Help from other organisations There are organisations across the UK that can help if you are homeless. They can also help if you are worried about becoming homeless. These include: Shelter Shelter Scotland Shelter Cymru Housing Rights (Northern Ireland). See page 97 for more information about these organisations. The charity Homeless Link has a website where you can search for support near you. This includes advice services, day centres and hostels for homeless people across the UK. Visit homelessuk.org You can also contact Citizens Advice Bureau (see page 97) or call Shelter s free national housing advice line on Contact your local council or the Housing Executive as soon as possible. Tell them your situation and ask how they can help you.

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84 Glossary Useful words to know 84 Insert divider TOC here

85 84 Housing costs Useful words to know When you are dealing with your finances, you may come across lots of new words and not know what they mean. In this chapter, we have explained some of the words that have appeared in bold in this booklet. Remember, you can call the Macmillan Support Line free on if you need more information or support. Affordability assessment When a lender checks your income and spending to see if you can afford mortgage payments. This is done when you apply for a mortgage. Bedroom tax (under-occupancy rule) A reduction to your housing benefit, if the council decides your local council or housing association accommodation is too big for your needs. Beneficiaries People who get your money when you die, for example because you named them in your will. Benefit cap The upper limit for how much money you can claim in benefits. Capital With a mortgage, this is the amount of money you have borrowed.

86 Glossary 85 Credit rating An estimate of how able you are to pay back any money lent to you. All lenders have access to your credit rating. If you have a poor credit rating, you may have trouble borrowing money. Deferred payment agreement An agreement with a local authority where they lend you the cost of care home fees. The fees are paid back once your home has been sold. Discretionary trust A trust used to put aside money or assets on behalf of someone else. Trustees look after the money or assets and make decisions about how they are used. Endowment insurance policy An insurance policy designed to pay out a lump sum at the end of the term, for example to pay off a mortgage. Equity The difference between what you have left to pay on any mortgage or loan on your property, and what the property is currently worth. Estate Everything you own when you die, minus everything you owe. This includes possessions, money and debts.

87 86 Housing costs Housing Benefit A State Benefit that helps with your rent payments if you have a low income. This is gradually being replaced by Universal Credit (see page 89). In arrears If you are in arrears, you are behind on payments, such as your mortgage or rent. Income All the money you have coming in. Independent mortgage broker A specialist who can check and compare mortgage options. They can help you make decisions about your mortgage. Individual savings account (ISA) A savings account that can save you money on tax. Insurance payout Money you receive from your insurer. You can get a payout when your policy ends or you make a successful claim. Interest When you borrow money, this is the extra money you pay back to the lender on top of the capital (see page 84).

88 Glossary 87 Leaseholder Someone who owns a property on a lease (a type of contract). With a leasehold property, you don t own the land it is built on. This is owned by a freeholder. You have a lease with the freeholder and this allows you to use the land for a set period of time. Lender An organisation that loans you money. For a mortgage, this is usually a bank or building society. Lump sum A single, one-off payment, for example from your pension or an insurance scheme. Nil payment A break in payments on your mortgage, like a mortgage holiday. Outgoings All your spending. Period of notice The period of time between when you make a claim on an insurance policy and the start of a payout.

89 88 Housing costs Premiums The monthly payments for an insurance policy. Repossession A legal process where a mortgage lender or secured loan provider takes ownership of a property. Return The amount of money you get back from an endowment policy (see page 85) or an investment. Secured loan A loan that is backed up by something you own, such as your house or a car. The lender has the right to take it if you do not repay the loan. A mortgage is a type of secured loan. Service charges Additional charges you may pay on top of your mortgage if you are a leaseholder (see page 87), for example to cover minor repairs or building maintenance. Support for Mortgage Interest Help with your mortgage that may be available through means tested income support, pension credit, Employment and Support Allowance (ESA), Jobseeker s Allowance (JSA) or Universal Credit (see opposite).

90 Glossary 89 Tenancy agreement A contract you sign with your landlord when you start renting a property. Term The duration of a mortgage. This will be agreed with your lender when you take out the mortgage. Universal Credit (UC) A new benefit for people who are looking for work or have a low income. It includes money for basic living, children and housing. It replaces other means-tested benefits and is gradually being introduced in England, Scotland and Wales. It has not yet been introduced in Northern Ireland. Waiting period A period of time between the start of any illness and the start of an income-protection insurance payout (see page 86). You choose the waiting period when you take out the policy.

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92 Further information About our information 92 Other ways we can help you 94 Other useful organisations 97 Your notes and questions 100

93 92 Housing costs About our information We provide expert, up-to-date information about cancer. And all our information is free for everyone. Order what you need You may want to order more leaflets or booklets like this one. Visit be.macmillan.org.uk or call us on We have booklets on different cancer types, treatments and side effects. We also have information about work, financial issues, diet, life after cancer and information for carers, family and friends. All of our information is also available online at macmillan. org.uk/cancerinformation There you ll also find videos featuring real-life stories from people affected by cancer, and information from health and social care professionals. Other formats We also provide information in different languages and formats, including: audiobooks Braille British Sign Language Easy Read booklets ebooks large print translations. Find out more at macmillan. org.uk/otherformats If you d like us to produce information in a different format for you, us at cancerinformationteam@ macmillan.org.uk or call us on

94 Further information 93 Help us improve our information We know that the people who use our information are the real experts. That s why we always involve them in our work. If you ve been affected by cancer, you can help us improve our information. If you d like to hear more about becoming a reviewer, reviewing@macmillan. org.uk You can get involved from home whenever you like, and we don t ask for any special skills just an interest in our cancer information. We give you the chance to comment on a variety of information including booklets, leaflets and fact sheets.