Credit rating causing my a big problem

twhitehousescat

I would suggest that you register at the same location your driving licence , credit cards and mail goes to and throw your percentage of the community charge/counsil tax into the kitty

If you register at your mothers location , you are stating that you LIVE there and by doing so , not only will the housing benefit for your mother stop , but the 25% off for single person will stop

in another world , they come down on claimants co habiting and claiming single allowance

Sncjw

You say it!!!8217;s costinf you to allow your mum to live there. If she wasn!!!8217;t living there it would cost you more.

You do realise doing interest only mortgage you will need to find the money at the end of the interest mortahe to buy the house or risk losing it.

MEM62

Col81 wrote: »

no it isnt a buy to let mortgage ive had the mortgage for 15 years and it is interest only. Look guys i am after advice thats all not a argument i can have one of them anytime with my partner...... credit cards registered at my mums but my credit score is 60 and ive been told if i go on the electoral roll it will go up and i can then lease a car

I appreciate that you are trying to find a solution for your situation. You should also understand that it is not my intention to be argumentative. I have no such intention. Where OP's are looking at a course of action that has consequences that it would not appear they have considered then many respondents will point these out. (And being an public forum some are more direct than others in the way that they word things.)

My assumption was that, as you are renting your property out, that you were doing this legitimately and therefore had a BTL mortgage. I therefore pointed out that potential issues that you may have with your mortgage lender if you were to go on the ER in case you had not considered this.

It appears that you don't have a BTL so that raises other risks for you as you are in breech of the normal terms of a residential mortgage by renting the property to your mother.

This point, as with many other points raised by other posters that are not necessarily a direct answer to your question, are intended to be helpful in that they are pointing out risks that you have potentially not considered. It is very easy to get tunnel vision in respect of dealing with a particular issue without looking at the wider consequences of what you are proposing. The positive part of forums such as this is that you benefit from thinking outside of your narrow parameters.

If you are already financially stressed then it is even more important that you consider doing things above board as the consequences of falling foul of the likes of you mortgage lender (and maybe the tax man if you are not declaring the income you derive from your m other?) can be serious and would make an already difficult situation even worse.

Col81_2

I do not receive a income i lose £250 a month. Any way it is ok i am seeking financial advice from a solicitor in order put put things right and try to sort out my situation. I may just go bankrupt and then rent a cheaper flat for my mum leaving me £250 better off and buy a used car.

efes_shareholder

Gavoo7 wrote: »

Your Mum needs to be very careful. She shouldn’t be claiming housing benefit for a house that you own (or any close family member).

I was just thinking this - Its certainly the case in my borough

Candyapple

Col81 wrote: »

Why will she lose housing benefit? i dont live their? and why should i be expected to house my mum? i already do and the fact i have put a roof over her head for years has cause me issues the mortgage is £600 a month and i get £350 off the council so it costs me to keep her housed

If your mortgage is £600 then I'm assuming the going rental rate in your area must at least be this if not higher, how comes your mum's housing benefit is only £350?

Is that the max the council will allow her? If yes, then why not help your mum look for another cheap house where the rent is £350pm, she's housed and then you can sell your house/start living there and move on with your life.

tripled

Assuming you act purely as a landlord in respect to your property (your mother has a tenancy agreement and you never stay there) then it is not your residential address and you cannot put yourself on the electoral role there. Instead you can register at another property where you spend a substantial part of your time or have some connection, i.e. your dad's or partner's address. For it to benefit your credit history you would probably need to switch your bills/bank accounts over to that address as well.

If however you just let your mother live in your property for a contribution towards the mortgage, even if you stay away in temporary accommodation most of the time, you could put yourself on the electoral role there. If the council notice the discrepancy (two people on the electoral role at an address with single person discount) it may well trigger an investigation. As you don't have anywhere else permanent they would likely deem it to be your main residence, along with the consequences that entails.

ViolaLass

Col81 wrote: »

I do not receive a income i lose £250 a month. Any way it is ok i am seeking financial advice from a solicitor in order put put things right and try to sort out my situation. I may just go bankrupt and then rent a cheaper flat for my mum leaving me £250 better off and buy a used car.

You DO receive an income but you're not making a profit.

mrsw1968

Col81 wrote: »

I do not receive a income i lose £250 a month. Any way it is ok i am seeking financial advice from a solicitor in order put put things right and try to sort out my situation. I may just go bankrupt and then rent a cheaper flat for my mum leaving me £250 better off and buy a used car.

Bankruptcy is the worst the worst thing you can do. The Official Receivers would own all of the beneficial interest in your property and can force the sale in order to clear your debts. You also have to, by law, submit an income and expenditure statement to the Receivers who then go through this statement and tell you what they will allow for expenditure. The Receivers will take any vehicle you have that's worth more than £500 to sell and put towards your debts. Any excess income must be paid to the Receivers for a period of 3 years. You are forbidden by law to enter into any credit arrangements for the period of bankruptcy, usually 12 months. After this your credit file is shot to pieces for the next 6 years.

Please don't think of bankruptcy as the easier option, it isn't. You will be left with nothing. Take it from someone who's been there.

I hope you manage to sort yourself out soon X

MEM62

Col81 wrote: »

I do not receive a income i lose £250 a month. Any way it is ok i am seeking financial advice from a solicitor in order put put things right and try to sort out my situation. I may just go bankrupt and then rent a cheaper flat for my mum leaving me £250 better off and buy a used car.

Correction, you do receive an income. However, as a 'business' your costs are greater than your income. You might be able to work this to your advantage as any looses could be offset against tax. I am fortunate to be in profit on my rental property so have not looked at things from this angle. Also I have no expertise in this field above what is required to complete my self-assessment. Speak with a Tax expert and see what advice they offer.