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Scotland

Increasing income

A borrower who has difficulties paying the mortgage should consider ways of maximising her/his income.

This content applies to Scotland

Maximising income

Ways to maximise income can include:

  • arranging a benefit check, including eligibility for tax credits, council tax rebate, Income Support, Employment and Support Allowance or Jobseeker's Allowance (including premiums), school clothing grants and non-means-tested disability benefits

  • checking tax code, to ensure all allowances are being claimed

  • looking at other ways of generating cash, for example part-time work, or letting out a room

  • reducing outgoings, for example by saving energy in the home, switching energy and insurance suppliers and cancelling subscriptions.

If the borrower is in receipt of Income Support or income related Employment and Support allowance and is considering letting a room, offering the accommodation on a bed and breakfast arrangement will attract the most favourable weekly income disregard. The Benefits Agency will disregard the first £20 of the rent, together with one half of any money received above £20. [1] This means that, if £40 is charged, only £10 will be deducted from the claimant's benefit. Remember, it may be necessary to obtain the lender's approval before letting out a room.

Last updated: 29 January 2020

Footnotes

  • [1]

    sch.9 para.20 Income Support (General) Regulations 1987 SI 1987/1967 as amended; sch.8 para.21 Employment and Support Allowance Regulations 2008 SI 2008/794