Buy to let mortgage paid by housing benefit

pitbulluk

A friend of mine's partner has just left her and her 4 kids. She is unable to afford the mortgage on her own, even with maintenance being paid by the father. The option is for the mortgage to go to interest only and then maybe she could afford it. However, I was thinking........instead of her moving out of the family home into a council house, could I not mortgage the property myself and get the housing benefit to pay for it?

If so would it be a buy to let mortgage?

Thanks

Loopgames

By mortgage you mean you want to buy the property from her and own it 100%?

Caz3121

pitbulluk wrote: »

A friend of mine's partner has just left her and her 4 kids. She is unable to afford the mortgage on her own, even with maintenance being paid by the father. The option is for the mortgage to go to interest only and then maybe she could afford it. However, I was thinking........instead of her moving out of the family home into a council house, could I not mortgage the property myself and get the housing benefit to pay for it?

If so would it be a buy to let mortgage?

Thanks

this purchase will probably require a 25% deposit and a BTL mortgage there are rules about claiming housing benefit for a property that you previously owned, also depending on the amount of equity in the property currently you may find your friend is not entitled to any means tested benefits.

She also wouldn't need to move out into a council house (she could wait many years for that) she can rent private and get some help, again depending on the equity from the sale

karenx

There is a period of about 5 years a tenant has to wait to apply for housing benefit for a house they have previously owned.

Fire_Fox

That sounds like it could be deemed a 'contrived tenancy' - why doesn't your friend apply for Support for Mortgage Interest?

afc80

if the only way that your friend could continue to live in the property is by selling the property and then renting it from the new owner then, yes, Housing Benefit can be paid. The 5 year rule for previous owners would not apply in this instance.

she would have to provide evidence of the above, (ie) letters from her mortgage provider showing arrears/threatened re-possession or a letter stating that they are unwilling to transfer the ownership/mortgage to her alone as she would not be able to keep up with the payments.

this is called the mortgage to rent scheme.

the mortgage to rent shcheme may only apply to Scotland? as it was introduced by the scottish government

bigbill

What income does she have as she might not get any help from HB even if it was allowed?

Child Maintenance is now fully ignored by all benefits so dont include this