Hypothetical situation

[Mrspoppins]

If you find yourself out of work, without any savings or redundancy payment, but with equity on your house, would you be entitled to any benefits or would you be expected to sell your house?

[alavahalf]

Equity is not classed as savings and does not effect a claim for benefit...
Have a look here..it's not a bad place to start...

http://www.benefitshelpline.com/Unemployment-B enefit~8.htm

[Mrspoppins]

Many thanks alavahalf, you just satisfied my curiousity. I was speaking to a friend whose husband is in the building trade, and he is not working at the moment. She told me they'd been advised that he wasn't entitled to anything as they have equity on their home. Looks like they were told wrong! I'll let her know asap. Thanks again!

[Scarlett]

It used to be that if you had a mortgage you had to wait for NINE MONTHS before you could claim housing benefit, which would pay the interest on your mortgage. Completely ridiculous, and unfair when people who rent can claim it straight away! However I think this has now changed- although I would be very interested to know what the new rules are.