Cousin sold her house and now unable to get mortgage to buy another

zaksmum

My cousin, 51, has sold her house and moved in with her mother temporarily while she looked for another.

She had her kids quite late - they are aged 8 and 6.

As her house sale went through her long term partner, the father of both kids, left her for another woman.

She has now found a house she wants to buy but has been refused a mortgage by every lender she has approached. She has only a small deposit - she was in negative equity - and is an unemployed single mum.

She can't stay with her mother as she's going into residential care very soon. She's in a total panic that she and her kids will be homeless.

Would her circumstances prioritise her for a council house?

casperlarue

I can't imagine any mortgage lender wanting to lend money to someone who has no income....your cousin should be looking for a place to rent rather than buy. Council houses are few and far between, many thousands of families would like to have one.

She should go to her local authority housing office to ask advice on claiming housing benefit, if she's unemployed she will be getting some benefits anyway? She wil have to use what money she has left from the house sale, if any, to go towards a deposit on a rental property.

Also the father of her children should be paying some maintenance money for them shouldn't he?

marleyboy

An unemployed single parent would struggle to get an overdraft, the chances of them ever getting a mortgage would be less than zero.

[Deleted User]

If she has a tiny deposit, is unemployed and has two children to look after -- which mean she'll find it difficult to find work, or be unwilling -- how does she expect to pay for a mortgage? Could she look at renting privately instead?

BitterAndTwisted

I am absolutely incredulous that she didn't anticipate this.

Still, that won't change anything. She needs to get onto her local authority's website and double-check what their LHA rate is for a two-bedroomed property and then find a landlord who will take her on at that rate, dependent on benefits. Easy to say, hard to do.

pinkshoes

I'm amazed she bothered even enquiring about a mortgage, let alone she's surprised by this!

The mother needs to write a letter to the council stating she cannot house them after <date>, then your cousin can take this to the council showing she will soon be homeless. Depending on the area, she will get some sort of accommodation, but this can often be a grotty b&b.

Does her mum own the property? Could she be guarantor for a private rental?

zaksmum

I'm surprised too. The father has disappeared and she thinks he has left the UK as he has links with another country.

There's no money from the house sale as she was in negative equity.

The mum does not own her property. It's sheltered housing and my cousin shouldn't be there at all so it all has to be kept quiet.

The mum cannot be a guarantor as she suffers from Alzheimer's.

My cousin has no intention of seeking work as she just wants to look after her kids. Most rental properties will not accept tenants on housing benefit so her chances of renting privately are slim.

Would she be considered priority for social housing as there seems very little else available to her?

Caz3121

zaksmum wrote: »

My cousin has no intention of seeking work as she just wants to look after her kids. Most rental properties will not accept tenants on housing benefit so her chances of renting privately are slim.

She may not have the option of not seeking work unless she has a disability. As her youngest is over 5 she will have the option of JSA where she will be expected to sign on and look for work, or accept there is no benefits she can claim for herself

paddedjohn

zaksmum wrote: »

I'm surprised too. The father has disappeared and she thinks he has left the UK as he has links with another country.

There's no money from the house sale as she was in negative equity.

The mum does not own her property. It's sheltered housing and my cousin shouldn't be there at all so it all has to be kept quiet.

The mum cannot be a guarantor as she suffers from Alzheimer's.

My cousin has no intention of seeking work as she just wants to look after her kids. Most rental properties will not accept tenants on housing benefit so her chances of renting privately are slim.

Would she be considered priority for social housing as there seems very little else available to her?

Im lost for words.

zaksmum

paddedjohn wrote: »

Im lost for words.

Me too! Unbelievable, isn't it? She has no disability as far as I know but is not hassled to look for work at all because of the children.

Anyway she will need a roof over her head so what might be her best option?

thesaint

zaksmum wrote: »

Anyway she will need a roof over her head so what might be her best option?

Present herself as homeless at the local council, or pay for 6 months rent in advance for a private rental.