Not really to sure what to do.

jonboy79

Ok, my partner is moving out of her parents house and will be renting some where soon with her son. As she is a single parent the housing association etc will pay most or all of her rent.
So i thought i could buy some where that she could then rent of off me, understanding that i will only be able to stay there for no more then 3 nights a week.
The problem i have now is using the online mortgage calculators, some say i can only borrow £45,000 and others £67,000. I'm 35 a support worker on a really low wage of about £15,000. Tempted to go back to college for sure.

I've now thought if it is possible to go down the shared ownership route and get a mortgage but then rent it out to her, if that is possible or would we be better buying it as a couple or through some other scheme.

Other suggestions will be greatly appreciated.

Regards jon

kingstreet

1. Housing Associations don't pay rent. She may be able to claim Local Housing Allowance, what used to be Housing Benefit. However, you can't contrive a tenancy so this can be paid to you, you sentimental old stick.

2. Shared ownership is for owner-occupiers only who can afford the mortgage, rent and service charges according to the HCA calculator and lender requirements.

My best suggestion would be to stop trying to screw the system and find a solution which suits you, your partner and your step-son.

jonboy79

Cheers kingstreet. I guess it sounds that way, but i'm not trying to screw the system. I just thought if i'm renting a place i might as well have her in it then some complete idiot.
We aren't married etc so would this still be classed as 'contrived tenancy'? No different then me buying some where and renting it out to someone else? Assuming that i could get the £65,000.

ACG

Would this end up being a BTL or would it be a resi?
You cant rent out a resi, but you cant live in a BTL either...

If its a residential it is based on your income.
If its a BTL it is based on the rental but even then, BTL mortgage would be difficult as your income is below the £25k threshold and im assuming your a first time buyer - both of which are going to make it very difficult to get a mortgage... thats assuming you have the deposit.

Tax credits/benefits are there to support people who need them. Not for people to profit from.

I really do hate this country at times.

jonboy79

I know what you mean, i'm not looking to make a profit from the government i just thought it might be a way to kill two birds with one stone so to speak.
Theres no way with my wage that i can afford to support all, and rather then the money going to a guy with 50 houses all being rented out i thought it could go towards helping us out.
So i guess neither way would work, and that saying i have over £10,000 deposit.

I guess i'm going to have to give up supporting for people with disabilities and look after number one.

And yes first time buyer, so i will have to by as a residential.

ACG

But as a residential you cant let it out... If you get caught the lender may decide to call in the loan.

jonboy79

Yeah i know i was thinking we might just have to live together and look into a shared ownership and live poorly and wait until she can get back to work. But even then i dont think i'm earning enough.

jonboy79

ACG On my salary would it be possible to buy a shared ownership £100,000 total cost of house and £50,000 mortgage with a 50% ownership and £10,000 deposit?

Many regards

kingstreet

£15,000 salary, rent of £114.58 per month and service charge of eg £45 per month sees the best known SO lender, prepared to lend £50,402 over 25 years, as long as you have no dependents, no other outgoings such as credit commitments etc.

If you have two adults in the household and one child, the amount you can borrow falls to £308.

Child benefit and tax credits (not childcare element) may be taken into account, if applicable.

jonboy79

Cheers kingstreet. So it will be possible then? Hoping that once the little one is older enough to go to nursery etc the other half could then get back to work, gaining more of the share in out name.

"If you have two adults in the household and one child, the amount you can borrow falls to £308."

Could you explain that bit please, the £308, is that a typo? Also your saying it will be worse if she lived with me then me getting a place on my own?

Got a credit card but usually only by stuff on it from the internet then pay it back monthly via DD, so it's clean. Got really good credit rating too, only ever took one loan out in my life so that bit shouldn't be a problem.

bigsamih

Just let her rent somewhere. And you concentrate on you.