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Can I get a mortgage if I'm receiving Housing Benefit
michael867
Posts: 6 Forumite
Hi guys, I am new here and have a question regarding getting a mortgage.
We are currently receiving a Housing Benefit - it's not much anyway and just got some money from our parents for a deposit to buy a home.
I know, obviously that Housing Benefit is not available for home owners, but my problem is different... I am worried if banks will have a problem to lend us money to buy a house, if they know that I'm currently getting a HB ?
I tried to find any answers online but looks like nobody have a similar problem. I'll appreciate if anyone could get me some info.
Regards
We are currently receiving a Housing Benefit - it's not much anyway and just got some money from our parents for a deposit to buy a home.
I know, obviously that Housing Benefit is not available for home owners, but my problem is different... I am worried if banks will have a problem to lend us money to buy a house, if they know that I'm currently getting a HB ?
I tried to find any answers online but looks like nobody have a similar problem. I'll appreciate if anyone could get me some info.
Regards
0
Comments
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Are you working?
Can you pay off a mortgage?0 -
Depends on what your total income is, disregarding any HB you receive & how much you are looking to borrow.The bigger the bargain, the better I feel.
I should mention that there's only one of me, don't confuse me with others of the same name.0 -
HB will not be taken into account for lending, nor JSA. Lenders will generally want people earning before considering offering an agreement in principle.0
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Well, based on our income + Tax Credits, a mortgage advisor calculated for us that we can borrow enough for the property we need. But she didn't ask (and I forgot to mention) what if I'm receiving Housing Benefit. I wouldn't have any concerns if my friend wouldn't told me that I may have a problem getting a mortgage while I'm still receiving a HB. That's why I wanted to ask if, maybe some of you have (or heard) about similar situation as me?0
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Thats up to you to declare to the DWP when needed. Being on HB now wont stop a mortgage if a party to the mortgage is earning.
Whats the income inc WFTC and CTC and how many dependants including you if your nit working?0 -
Of course, IF I will buy a house I will let the local Council know to cancel my HB.
Yes, we are earning... I'm self employed and I am earning and we are receiving some CTC & WTC benefits as unfortunately I am a only person working (my wife is housewife with two small children at home).0 -
Lenders will take 50-60% of usable state benefits. The income you use will need to be a minimum 3 yrsgenerally and ewhat you declared to HMRC for tax purposes via a form called SA302 that you can get from them.
Having s non working wife and 2 dependants will restrict your lending.
The income you have declared is the deal breaker.0
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