Mortgages and benefits

johannamse

Hi,

Has anyone any experience with this?

Do companies even take benefits into account? Does it depend on how "reliable" the benefits are? Do they ask to see sprecific documentation?

Could it be detrimental to the whole process if I declare something (ie. could it open w hole can of unnessary worms?)

Cheers x

fast_track

It depends what you mean. If you lose your job and have to claim income based Job Seekers Allowance or Income Support; after a waiting period of about 40 weeks (however, waiting period can vary due to circumstances) the DWP will pay interest direct to your lender (interest currently at about 5.7%). You can also get this help if your are receiving Pension Credit. However, if you are nearing the end of a repayment mortgage this help amounts to very little as you are mostly repaying capital at this point. If you are on benefits don't even consider buying as you will not get much help (certainly compared to Housing Benefit paid on rental accommodation) If you found a lender you would get a really dreadful rate I believe. Other benefits such as DLA should not be considered by anyone when assessing your income as this benefit is solely to meet costs associated with a disability. If you redraft the question I can be more specific with an answer