Over 60's mortgage - low income

ianh68

Just done some numbers and seems to me you are paying 21 per cent under occupancy so suggests two spare rooms. I am assuming though given your income you may have some opportunity for discretionary housing payment - although your local authority may not be sympathetic to that level of under occupancy. Although it would seem you are on full or almost full housing benefit to pay that level of under occupancy charge which is only a reduction in benefit not an increase in rent.


Am assuming (maybe wrongly) the effective jump from £6k to £10k is housing benefit? Without checking the benefit rules, you would not receive that at all on a mortgage you established whilst on benefit.


Anyhow one option that may be available would be to downsize. Seems to me you are close to or at maximum RTB discount depending on how accurate your figures are. If you were to talk to them - in most cases - several things can happen. They will probably help you move not just giving you priority for letting but also maybe financially. Your rent would clearly drop as would your under-occupancy charge or bedroom tax. Similarly the property purchase price would also drop a considerable amount.


Again not knowing your circumstances you may want to buy your current home given its size and maybe as something to pass on, but given that mortgage affordability checks (I think) look very closely at post-retirement income and I believe assume 70 as maximum working age you might struggle even with accounts unless you wanted a very short term. If though you just want to own your own home then the downsizing and under occupancy savings, and lower rent when your business is up and running would give you a fair old deposit in a year or two. Worth remembering too, given the benefits you appear to be receiving, your benefit will fall away as you work so factor that in too.


Just a thought.

csgohan4

OP even if you could afford to buy the house, I don't think you could afford to maintain the house.

https://forums.moneysavingexpert.com/discussion/5670536

you have been warned op

Brock_and_Roll

amnblog wrote: »

It interesting that in the well thought out world of social housing, you can be taxed for occupying a house that is too expansive for your needs, yet it's OK to take it from the housing stock for 30% of it's value.

Agree - if there was ever a post (no fault of the OP) that sums up how broken the UK social housing market is, then it is this one!!


The Government is imposing a bedroom tax because it wants to free up desperately needed family sized social housing....but at the same time they are happy to permanently remove the property from the social housing stock at a fraction of its value.


So the taxpayer gets lumped with the full market cost of keeping families in private rentals, whilst the current tenant walks away with a tax free gain! Broken Britain.

Rich2808

amnblog wrote: »

It interesting that in the well thought out world of social housing, you can be taxed for occupying a house that is too expansive for your needs, yet it's OK to take it from the housing stock for 30% of it's value.

I agree its absurd. I am afraid that reflects a certain attitude that still hasn't changed in government and other quarters - property owners matter and renters are considered as being worth next to nothing.

We cant afford to subsidise people to have a spare bedroom to the tune of £1k a year - to retain social housing - but can afford to give the same people up to £105,000 off the purchase price to buy the same property.

I don’t begrudge the OP wanting security in retirement but it makes no sense from the taxpayers perspective.

debtisnotme

Rich2808 wrote: »

I don’t begrudge the OP wanting security in retirement but it makes no sense from the taxpayers perspective.

The OP has a hell of a lot more security now then they would have in a mortgaged property with his/her level of income!