Pension mortgage

seven-day-weekend

I personally do not know of anyone who has a NEW mortgage paid. I think it's only for people with existing mortgages who find themselves on hard times.

AFAIK this applies to everybody, pensioner or not.

MamTor13

SilverStandard wrote: »

Thanks for that, finally a useful helpful post.

But this apply to pensioners?

Yes it does. Even if you got over the new mortgage hurdle (which I can't think of a way you would) you don't seem to be in receipt of any benefit that would help you with mortgage costs to begin with. State pension and private pensions are not means tested benefits. It would need to be pension credit or the likes. If you took out the mortgage now and later qualified for a means tested benefit (perhaps after a successful claim for another benefit such as carer's allowance) this would be different, although there are restrictions on when mortgages were taken out and how much. Also if you didn't apply for a benefit before the mortgage but could have qualified may also throw up problems as to if the late claim was put off to secure benefits at a later date. See this commissioners decision relating to this matter. http://www.administrativeappeals.tribunals.gov.uk/aspx/view.aspx?id=1916

Regarding the rent being roughly the same amount; rent is paid for by the Local Authority and not dealt with under the same rules or department as help with mortgages, that comes under the DWP (although if you have a crown tenancy or live in a tent that comes under the DWP for housing costs but that's a whole different nightmare). To get help towards rent you need to have a liability to pay rent, therefore once you take out a mortgage you no longer have that liability. I know Private Mortgages differ in the respect that you have no ownership rights of the property until the loan is paid in full, for example the title deeds remain in the lenders name but the fact remains that you have no rent liability and therefore the payments you're making would never be considered rent (as far as I know – I've never had to approach the DWP or LA with the prospects of how they would view a private mortgage even if it was a pre-existing one).

McKneff

SilverStandard wrote: »

Thanks for that, finally a useful helpful post.

But this apply to pensioners?

There were other useful posts, they were just not what you wanted to see because they didnt agree with what you wanted to do. ie get the taxpayers to buy you a house.

SilverStandard

MamTor13 wrote: »

Yes it does. Even if you got over the new mortgage hurdle (which I can't think of a way you would) you don't seem to be in receipt of any benefit that would help you with mortgage costs to begin with. State pension and private pensions are not means tested benefits. It would need to be pension credit or the likes. If you took out the mortgage now and later qualified for a means tested benefit (perhaps after a successful claim for another benefit such as carer's allowance) this would be different, although there are restrictions on when mortgages were taken out and how much. Also if you didn't apply for a benefit before the mortgage but could have qualified may also throw up problems as to if the late claim was put off to secure benefits at a later date. See this commissioners decision relating to this matter. http://www.administrativeappeals.tribunals.gov.uk/aspx/view.aspx?id=1916

Regarding the rent being roughly the same amount; rent is paid for by the Local Authority and not dealt with under the same rules or department as help with mortgages, that comes under the DWP (although if you have a crown tenancy or live in a tent that comes under the DWP for housing costs but that's a whole different nightmare). To get help towards rent you need to have a liability to pay rent, therefore once you take out a mortgage you no longer have that liability. I know Private Mortgages differ in the respect that you have no ownership rights of the property until the loan is paid in full, for example the title deeds remain in the lenders name but the fact remains that you have no rent liability and therefore the payments you're making would never be considered rent (as far as I know – I've never had to approach the DWP or LA with the prospects of how they would view a private mortgage even if it was a pre-existing one).

Just one thing with a private mortgage, the deeds dont have to stay in the name of the seller. Its up to you both as long as you have a good solicitor.

You can buy the house and at land registry you are the owner, but the seller has a charge on the house for the remaining amount of debt, just the same as if it was with the bank.

MamTor13

SilverStandard wrote: »

Just one thing with a private mortgage, the deeds dont have to stay in the name of the seller. Its up to you both as long as you have a good solicitor.

You can buy the house and at land registry you are the owner, but the seller has a charge on the house for the remaining amount of debt, just the same as if it was with the bank.

I see, I didn't realise that. Thanks. It would be interesting if you had a private mortgage with a relative rather than a bank, I wonder how the DWP would view that if it was already established before a claim for a qualifying benefit. I've never had to deal with the situation in my line of work.

EdInvestor

A private mortgage is also known as a vendor mortgage.They remain fairly unusual but do still crop up with properties where the banks will not lend, freehold flats being the most well-known example, flats with very short leases being another.

I can't see why a properly drawn up vendor mortgage couldn't be considered by the authorities, obviously with the caveats mentioned above re disallowed claims.

EdInvestor

MamTor13 wrote: »

Yes it does. Even if you got over the new mortgage hurdle (which I can't think of a way you would) you don't seem to be in receipt of any benefit that would help you with mortgage costs to begin with. State pension and private pensions are not means tested benefits. It would need to be pension credit or the likes.

Since the OP gets LHA and council tax benefit it sounds as though he does actually get a pension credit topup albeit perhaps very small.

MamTor13

EdInvestor wrote: »

Since the OP gets LHA and council tax benefit it sounds as though he does actually get a pension credit topup albeit perhaps very small.

He may, but you don't have to get those to get LHA or CT. It's just that in the first post he only said state and private pension.

MamTor13

EdInvestor wrote: »

I can't see why a properly drawn up vendor mortgage couldn't be considered by the authorities, obviously with the caveats mentioned above re disallowed claims.

I can't either, but I wonder if the lender was a close relative would you be able to get help with interest payments without the DWP questioning it? I have no idea if they would or could, it's not something I've ever had to deal with.