Mortgage for single mother on benefits

gunnag

My girlfriend has recently inherited a three bed semi worth around £270000. There are some debts associated with the estate which must be paid off, approx £40000.

Currently my GF is living in a 3 bed flat which is rented, she has 3 children and receives housing benifit, tax credit & income support. We dont live together as we prefer to have our own space.

Having inherited the house, she wants to live in it but needs to raise £40000.

So my question is, how can she raise this sum of money? IM guessing a mortgage would be the best bet and I would be willing to act as a guarantor. Are there any mortgage companies who would accept this situation?

Mrs_Z

Why not sell the house, pay off the debt and then buy something cheaper (£230k) for her and the kids to live in?

Thrugelmir

Mrs_Z wrote: »

Why not sell the house, pay off the debt and then buy something cheaper (£230k) for her and the kids to live in?

Seems to be the best option. A a mortgage is most certainly out of the question at the current time.

antrobus

Mrs_Z wrote: »

Why not sell the house, pay off the debt and then buy something cheaper (£230k) for her and the kids to live in?

Because if she sold the house she'd have £230,000 in the bank and wouldn't qualify for income support?

opinions4u

antrobus wrote: »

Because if she sold the house she'd have £230,000 in the bank and wouldn't qualify for income support?

No. She'd have a mortgage free property worth £230k.

gunnag

Thanks for the replies, just to be clear, we dont want to live together and her three kids are not mine, we feel it would be better to keep our affairs separate.

Selling the house is definetley a possibility, we were trying to find out whether she would be able to keep the house by getting a mortgage with me as guarantor. If not then selling & buying somewhere cheaper would be the best option.

JonnyTwoToes

This country.

leveller2911

gunnag wrote: »

Thanks for the replies, just to be clear, we dont want to live together and her three kids are not mine, we feel it would be better to keep our affairs separate.

Selling the house is definetley a possibility, we were trying to find out whether she would be able to keep the house by getting a mortgage with me as guarantor. If not then selling & buying somewhere cheaper would be the best option.

Not really keeping your affairs seperate if you become a guarantor.From your posts it doesn't seem like there is much commitment with the relationship so I would be very careful , just my opinion though..;)

Annisele

You might be better of sticking this on the benefits board.

£230k worth of assets (in whatever form) are going to affect your girlfriend's benefits somehow!

mildred1978

gunnag wrote: »

Currently my GF is living in a 3 bed flat which is rented, she has 3 children and receives housing benifit, tax credit & income support. We dont live together as we prefer to have our own space.

Has she inherited another child as well? In March 2010 she only had 2 children..........??

gunnag wrote: »

Her circumstances are as follows:-

- single mother aged 44 with two children 13 & 16
- working 29 hours per week, gross income £191 per week
- tax credits £174 per week
- child benefit £33 per week
- council tax £1300 yearly
- monthly rent on flat £825, private rental
- local housing allowance £207 per week

gunnag

mildred1978 wrote: »

Has she inherited another child as well? In March 2010 she only had 2 children..........??

I came to this forum trying to get a sensible answer to a sensible question. So far, I have received nothing of any use, instead I have received a series of cynical comments from people who clearly have no knowledge of her circumstances and who have nothing to contribute.

This was a perfectly valid question and IM sure someone with knowledge in these matters can give a decent answer. Sadly this doesnt seem to have happened so far.