House purchase on Benefits

mjbaker

My daughter is handicapped and is in receipt of DLA, Incap Ben, Council tax Ben, Child tax credit, Income support. Her husband receives carers allowance. They have one child and are expecting a second one in April. My daughter is 25 and her husband, 23.
At the moment they are renting a 3 bed property at £550 per month. They contribute £150 towards the rent. The rest is paid by housing benefit. The house will soon be up for sale for £150,000. They would like to buy it to get on the property ladder. Could they buy it whilst still on benefits? Will the DSS contribute towards a mortgage? And if they could - how would they be able to go about this? Any help gratefully received. Many thanks. Jura13 Total annual income £21000

PasturesNew

I've no idea of their income.
Or the schemes that might enable this.

But just looking at the figure of £150,000 I'd say "You're having a laugh. No way". Even if they were both out at work, they'd need an income of about £40,000/year to get granted a mortgage on that much.

Toto

Are they on the council waiting list? It sounds to me as if they would be much better in a council house. I would have thought with her disability she would get quite a few points especially if she needs any special adaptations to a house (for a wheelchair for example). Ask the disabilities team at social services to help with an application.

mjbaker

Many thanks - we are looking in to that as well, but they are new to the area and this seems to take points away for some reason.

teeni

If she is on the waiting list for social housing with local housing assosciation she may be able to buy house through low cost house purchase scheme, they can arrange morgage for people on long term benefits if the income is high enough.. They only buy the % of the house they can afford and housing association give interest free loan for the rest. if the propery has to be sold then they take the same % from the sale price.

worth asking around.

epz_2

PasturesNew wrote: »

I've no idea of their income.
Or the schemes that might enable this.

But just looking at the figure of £150,000 I'd say "You're having a laugh. No way". Even if they were both out at work, they'd need an income of about £40,000/year to get granted a mortgage on that much.

agreed, the day a family with no outside income can buy a £150,000 home i am giving up and going on the dole till this country gets its act back together.

£150k is best part of a grand a month normal mortgage, thats an extra £600 a month to find and there is likely some asset value maximum which would stop the benifits.

SquatNow

mjbaker wrote: »

They would like to buy it to get on the property ladder.

Please do not refer to it as the property ladder, it is the property PYRAMID. Refering to it as the "preoperty ladder" is highly misleading.


oh... and DSS/housing benefit would only ever pay the interest on the mortgage.

Given the current market, it is a badt to buy... maybe they should sit the crash out?

Running_Horse

I didn't realise people on benefits could have houses bought for them by the taxpayer.