Help with interview under caution.

[firehazzard]

I have been asked by dwp to attend an interview under caution for failure to declare capital. my name is on a property, land registry deed and mortgage that i hold in trust, im the trustee. i have no claim to the property and i do not live there, i am not liable for any monies in relation to the house. i also got out a loan a couple of years ago for someone else, the loan is in my name but they pay it back, the full amount of the loan was paid straight into their account and i never had any of the loan money nor do i gain financially or otherwise for either of these and i have a copy of the trust deed and bank letters to confirm this money was paid into this persons account. I was on income support and housing and council tax benefit. Am i in trouble??????? please help im so worried.

[DrFilth]

bednobs >> mortgage << are you on the right thread

[bednobs]

clearly you know more than me nosha, but how does a mortgage lender give money to someone who had interest or stake in the house? Also if the land registry is in the op's name how can he not have a stake in the house?

[sara3]

razza.. they can't discuss this without cautioning her first, as they believe a criminal offence has been commited.

[bednobs]

"my name is on a property, land registry deed and mortgage"
yes, right thread

[Nosha123]

I understand the implications of Trust Deeds when it comes to mortgages as I had one with my MIL... Others here dont seem to understand it.
My MIL name was on our mortgage... her salary was taken into account when the bank worked out the multiples when lending - yet she had no financial tie to the house nor the mortgage. They could not go after her if we defaulted. The mortgage was ours and our responsibility only.. the house was ours and not hers. She sought independent legal advice to ensure she knew the details.
Its all above board and no-one covered for anyone!
The activity is not fraudulent or naive...
These days a trust deed would be required if a couple living together but only one person has their name on the mortgage.. but the other contributes to teh bills and mortgage - they can have their 'share' held in trust for them should they split up. Its perfectly legal

[Nosha123]

Bednobs: "Also if the land registry is in the op's name how can he not have a stake in the house?"
Because he has a trust deed set out which will state he has no legal claim to the property or any monies from the sale of it. This is the same reason he has no legal obligation to pay the mortgage also.
The bank didnt seem to mind when we did it - albeit it was a few years ago...
We had 3 names on the mortgage... 2 names on the deeds (mine was not allowed on deeds) and a trust set up with my name on it stating I was owner of 50% of the house.

[DrFilth]

>> i don't understand how you can get a mortgage for which you are not liable? <<

see above Nosha123

[VHG]

From your append above Nosha123 then firehazzrd may be ok.

But the dwp obviously have some concerns about the situation so want to ask questions.

It may be they ask their questions, are satisfied, and nothing more is said.

To be honest none of us know all the details and until the interview takes place it is hard to say what will happen.

[bednobs]

so if the person is not liable for any of the mortgage, why have them on there? under that principle i could take into account elton john's wages to get a multimillion pound mortgage, yet if i defaulted it wouldn't make any difference? I am asking to help me understand cause i don't get it. However, i bow to your knowledge. Firehazzard, it sounds like you ust need to prove this to DWP then

[Nosha123]

I hope for the OP that the DWP visit all the evidence and can see there is nothing funny going on - however I do appreciate it would look suspicious to the outsider... Hopefully upon investigation they will be satisfied.

Not sure why banks allow trust deeds or how easy it is anymore.. The reason for us doing it was it was a Council Right to Buy... MIL name was the Council Tenant along with her son (my now husband)... by law her name HAD to be on the mortgage and the deeds as she was the named tenant... But we were the ones who got the mortgage and paid for it all... Her name was only on there to satisfy the fact she was the former tenant and name on deeds...
Perhaps our case was like this as it was a Council Right To Buy... but I do know people who have them these days when a new partner moves in and pays half of everything but their name isnt on the mortgage. The house is valued before they move in and then they get a share of any increase in profit from that date but not pre that date....

[bednobs]

thanks nosha, still don't understand but thanks for trying to explain

[firehazzard]

Thankyou for all your answers, i understand why it does appear that something is up, and i do understand why dwp would want to talk to me. Its just a stress i dont need and yes maybe i should have thought of that when helping this person but i honestly and genuinely believe that i was doing nothing wrong. as ive said i do not have any claim to house nor have i gained from it. i also never had any of the loan money nor do i gain from the repayments. hopefully it will all be ok.

[tonywiltshire]

You need to prove you have no financial interest in the House or it will be taken as an asset.
The loan is more difficult, if it is in your name the DWP will expect you to be the beneficiary of the loan, it will not be easy to convince them you are not. They will want to know why you would take out a loan for another person.
You need to have your answers ready and be prepared to name the person for whom the loan was taken out, if they were on benefits there may be a problem.
They are obviously suspicious, as they want to interview you under caution

[jackthehat]

Is taking out a loan not permissible under DWP rules?

[firehazzard]

The trust deed states clearly that i have no claim to the house. As for the loan the person has never been on benefits and is very happy to write a statement saying that the loan was for them and they are repaying it. thank you for your answer.

[sara3]

jack, they count loans as capital.. monies available. same with Student Loans.. even though they have to be paid back.

[jackthehat]

Thanks, sara.

[tonywiltshire]

JTH: You can take out a loan whilst on benefit, if you can find someone prepared to advance money, but there are rules concerning the amount of capital you can have before you can claim Income support, Housing benefit and Council Tax benefit.

[tonywiltshire]

FH: The DWP will think it strange that you would take out a loan for another person, it will help if they are a member of your family.

[dzug2]

What puzzles me is why the property, mortgage, loan, etc, were in OP's name rather than in the name of the trust that he administers. It would have been a whole lot simpler if they were

But provided the existence of the trust and OP's authority to operate it can be established then there shouldn't be a problem once the DWP understand what's going on