Is buying a house deprivation of capital?

MaireAA

I currently have over the £16,000.00 threshold of savings ( equity from house sale with ex-partner) so I am not entitled to any benefits. I work part time ( single mum) and
I am currently using my savings to top up bills & rent.
1) If i put the money into a mortgage for a house i will live in with my children is this deprivation of capital?
2) the only way i can keep on top of bills will be to claim for benefits once i have put the money into a mortgage will this be allowed ?? I am not  going to claim mortgage assistance just UC & child benefit.
Will this be possible ??
I hate the idea that my alternative is to wait until my savings are gone and then claim for rental help and everything else. 
I dont want to risk buying a house and then finding out I am unable to claim UC.
  

padlilly115

I cannot comment on benefits, but it sounds like you may struggle to pass the affordability tests for a mortgage - have you checked this?

NinjaTune

If you will need UC to top up your income then I doubt you will be approved for a mortgage.

MaireAA

padlilly115 said:

I cannot comment on benefits, but it sounds like you may struggle to pass the affordability tests for a mortgage - have you checked this?

Family member is helping me to purchase

MaireAA

NinjaTune said:

If you will need UC to top up your income then I doubt you will be approved for a mortgage.

family member is helping me to purchase

AdrianC

MaireAA said:

1) If i put the money into a mortgage for a house i will live in with my children is this deprivation of capital? 

Do you mean if you gift the money to your children to help pay off the mortgage on a house they own?

NinjaTune

MaireAA said:

NinjaTune said:

If you will need UC to top up your income then I doubt you will be approved for a mortgage.

family member is helping me to purchase

That wasn't clear from your OP as you say "the only way i can keep on top of bills will be to claim for benefits once i have put the money into a mortgage"

If your family member is helping you to purchase then, presumably, you won't need a mortgage?

The acid test is whether you are doing this with the intention of claiming benefits that you currently aren't entitled to.  It seems that you are so it will come down to the decision of the DWP as to whether they feel you have deliberately deprived yourself of capital.  I guess it's a risk you may need to take in order to stop having to top up your rent payments with your savings.

Angela_D_3

Natwest will take child maintence and some government benefits into account for mortgage purposes providing you have a spotless credit record.   But no putting a roof over your head is allowed, buying a 2nd home wouldn't be.

getmore4less

I recall there is some leeway where you are using house proceeds to rehome yourself.

Might be time limits how long you can keep the proceeds. 

MovingForwards

1. No. Possibly disregarded for 6 (?) months, maybe best to ask on the benefits board about that as I can't think who to tag for them to respond.

2. Yes. You wouldn't get any help towards the mortgage or interest element due to working. Even if you were not working it's only help towards the interest and is a loan secured to the property. 

Speak with a broker to see what your options are. Possibly have a chat with @haras_n0sirrah as she has commented on situations like yours before.

jefaz07

Angela_D_3 said:

Natwest will take child maintence and some government benefits into account for mortgage purposes providing you have a spotless credit record.   But no putting a roof over your head is allowed, buying a 2nd home wouldn't be.

Do they? I didn’t know this. Seems a bit risky though.