Buying House - Only just off benefits

AdrianC

Jaxxy31 wrote: »

We have the mortgage in principle

Then they've decided that you, conceptually, are good for borrowing the money. You're past the bit you're worrying about...

The next step is deciding whether the house itself is good security for the loan.

theartfullodger

MOST adults in UK are on benefits. Don't worry about it.

AdrianC

theartfullodger wrote: »

MOST adults in UK are on benefits. Don't worry about it.

No, they aren't.

Of the ~20m "benefits claimants", around 2/3 are of pensionable age, 1/3 (6.8m) are of working age. 4.3m of them are on housing benefit, 1.3m of those are in private sector housing. There are 36.2m working-age adults in England and Wales.

So a little over 10% of the working-age population is in receipt of housing benefit.

https://www.ethnicity-facts-figures.service.gov.uk/british-population/demographics/working-age-population/latest

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/682581/dwp-quarterly-benefits-summary-february-2018.pdf

knightstyle

Surely the lender needs the statements to show your income so they can see you can afford the repayments? It has nothing to do with the deposit and anyway you could have said your father was looking after some of your money to make sure you didn't spend it?

davidmcn

knightstyle wrote: »

Surely the lender needs the statements to show your income so they can see you can afford the repayments? It has nothing to do with the deposit

Whatever the lender's requirements, the solicitor will also need to see statements to check the source of funds for the deposit.

and anyway you could have said your father was looking after some of your money to make sure you didn't spend it?

Not particularly convincing from an anti-money-laundering point of view.

AdrianC

davidmcn wrote: »

Not particularly convincing from an anti-money-laundering point of view.

"My godfather, Don Luigi, has been looking after it for me, honest..."

Broadyx

The solicitor doesn't care if you were on benefits. The solicitor needs to verify the source of funds for money laundering purposes. So even if they did need to see your bank statements, they are hardly going to forward them on to the mortgage company.
I would be surprised though that the mortgage company doesn't ask for your bank statements to verify your income, but given youve got an AIP, they clearly don't mind you've only been in your job for 2 months.

chanz4

Halifax AIP isn't worth much, unless they have instructed the valuation its very early and don't go spending as every event trigures a check

theartfullodger

AdrianC wrote: »

..............
Of the ~20m "benefits claimants", around 2/3 are of pensionable age, 1/3 (6.8m) are of working age. 4.3m of them are on housing benefit, 1.3m of those are in private sector housing. There are 36.2m working-age adults in England and Wales...........

Helpful analysis: So some 20m of the 36.2m are on benefits: I make that about 55%, not 10% (I have an MA in sums..)



Artful: In receipt of 6 benefits ( ... old....)

AdrianC

No, because 36.2m is working age, 16-64. 6.8m of those 36.2m are on benefits.

Add the ~13m who are of pensionable age to that, 100% of whom are on "benefits", and you have 20m claimants of 49.2m 16+ population - roughly 40%. Your MA in sums will show that's less than "most".

It's also an irrelevant proportion, since relatively few pensioners are in the mortgage market, simply on the grounds of age and income...