Owning my own home and UC

cakeISnice20

Hello,


Just looking for some advice. I have been working since I was 17. I have always lived with my parents. They have never asked a penny off me but I also contribute to bills and food each month. I have been saving for a few years now. Come next year ill have enough to buy my own home.



I work for the Royal Mail and the pay is decent. Since am a first time buyer I am excited but also nervous. One of my biggest fears is. What if I buy my own home then I loose my job. Would UC help me with living expenses until I find another job?


I have never been on benefits so it's all confusing to me and I hope I never have to go on benefits (no disrespect to anyone currently claiming). So yer am just looking for a bit of advice. Thanks in advance.

poppy12345

The home that you live is is disregarded for means tested benefits.

MovingForwards

You could always take out an insurance policy in case of unemployment, it would pay a fixed amount out for a certain amount of time.

Build up a healthy emergency fund in case of job loss.

Be aware any benefits claimed towards the mortgage, which may only be towards the interest not capital, are done as a loan now.

poppy12345

MovingForwards wrote: »

Be aware any benefits claimed towards the mortgage, which may only be towards the interest not capital, are done as a loan now.

On UC there's also a wait of 9 assessment periods with zero income from earnings before any SMI can be paid.

NedS

cakeISnice20 wrote: »

I work for the Royal Mail and the pay is decent. Since am a first time buyer I am excited but also nervous. One of my biggest fears is. What if I buy my own home then I loose my job. Would UC help me with living expenses until I find another job?

When I had a mortgage and a relatively insecure job, I always ensured I had enough of a cash buffer to be able to survive for 12 months should I lose my job. I figured it may reasonably take 12 months to sell the property if I could no longer afford to pay the mortgage and/or would give me sufficient time to find another job.

I realise it's not always easy to build up such cash reserves when you are also saving for a large deposit, but I believe it is essential to not over stretch yourself financially and a level of safety should be built in to mitigate against any perceived risks, and you obviously consider losing your job as a perceived risk.


As others have mentioned, the UC benefits system will not help you with the mortgage for 9 months, and only then (after a full 9 months of zero income) it's interest only help which is repayable so is not anything worth relying on IMHO.

Kayalana99

poppy12345 wrote: »

The home that you live is is disregarded for means tested benefits.

This is true but you don't get entitled to housing benefits which could be difference between getting by or not.

That said, it's pretty easy to pick up work these days. This really isn't something I'd be worried about and a bit of EF savings to cover 2-3 months living costs would do you fine.

TELLIT01

Take out an insurance policy to protect against unemployment and to pay mortgage interest if you do lose your job. Most will have a qualifying period once unemployment happens - typically about 3 months wait.

annandale

You don’t get housing benefit if you are on UC. It’s called housing element. Depending on how much if any savings you had you could claim UC if you lost your job the single persons rate is just over 317 pounds per month.

annandale

You can apply for a support for mortgage interest loan if you are on UC and lose your job but there’s a 9 month wait period.

calcotti

annandale wrote: »

You don’t get housing benefit if you are on UC. It’s called housing element. Depending on how much if any savings you had you could claim UC if you lost your job the single persons rate is just over 317 pounds per month.

Which isn't relevant to someone buying a house anyway as they housing benefit/UC housing element provides help with paying rent and not paying a mortgage.

calcotti

annandale wrote: »

You can apply for a support for mortgage interest loan if you are on UC and lose your job but there’s a 9 month wait period.

But you are only entitled if you have 9 months with NO earnings. All as already covered in previous posts at #3 and #4.

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People buying a home with a mortgage do have a harder time if they become reliant on the benefits system. One thing to look at is the terms of your mortgage - some mortgages will allow repayment 'holidays' which can then provide a period of a few months while you can try and get new work without having to pay the mortgage. Without this included in the terms you are reliant on the flexibility of your mortgage provider at the time the need arises. See https://www.moneyadviceservice.org.uk/en/articles/mortgage-payment-holidays

It can be much tougher for those with a mortgage if they become reliant on benefits whether due to losing a job or through illness. Insurance will help - but obviously has to be paid for,