Shared Ownership Mortgage Solely on Disability Benefits

NatalieanneDFW

KxMx said:

I'm no expert on SO but would you also have to find money for repairs and maintenance on top of the small mortgage? 

I'm also disabled and can understand totally why you want out of private renting. 

I'd ask why you've ruled out a council tenancy as that would give you security and no responsibility for expensive repairs etc.

A secure council tenancy would give you security and while it might not be your first choice, it may be the most sensible financially in your circumstances. 

Thank you for this. The property will be a new build so would have the 10 year guarantee. Also I pay for repairs and have decorated the house I'm in now so that wouldn't be much of a difference. I always have money saved up anyway as I've saved up the deposit I have. 
I haven't ruled out council but there isn't really many in my area and it's around an 8-10 year waiting list. Also I'm not sure if they would be suitable for my children. 

NatalieanneDFW

cattie said:

Although I understand about wanting a secure roof over your heads, I agree with poppy as owning a property isn't just about paying the mortgage & you need to be sure you have a financial cushion before going ahead. There is the upkeep & maintenance to pay for, roof problems for example could cost in the £thousands if replacement is needed, a new boiler could set you back £2k or more. Buildings insurance is essential-probably billed along with service charges as part of the S0 scheme. I'd advise you to check out any extras on top of the mortgage that you might need to budget for.
Then there's the cost of the legals, will you have enough to pay for these to enable you to go ahead?

You don't say if your intention is to staircase in the future to be able to own a bigger proportion of the property, but until you own 100% there will never be full security as you will still be paying rent.

It's never wise to consider buying a property without a few thousand £ in the bank for emergencies I feel, so just be sure your financial position is sound before going ahead.

I totally understand all of that and the new build would come with a 10 year guarantee so I would expect the boiler to last a while. I have savings anyway and I'm very careful with money. I pay for most of the repairs in my privated rented house and I've had it decorated and I've had new lawn down etc. I'm very house proud.
Universal credit would pay the rent side of it. I would just need to pay the mortgage payment. They will also help with service charges but I absolutely agree that I need to be sure of all the legal aspects of it before moving forwards. Yes I would staircase in the future and universal credit will allow me the rent element so that's not of massive concern as even if I didn't staircase, I would just be able to pay the rent. 
I will continue research anyway, thanks. 

NatalieanneDFW

poppy12345 said:

I once had my own home, with a mortgage, my marriage brokedown and i could no longer pay my mortgage. I had 3 small children all under the age of 7 and i wasn't working. My Ex was always the one that worked, while i stayed home to look after the children. My house we repossessed and i tried everything i could to stop this happening but i hit a brick wall with everything i tried. I had 2 weeks to find us a new home, thankfully i managed it but it was the most stressful time of my life and all of this on top of an abusive marriage.

You say renting is less stability but i don't know how you can say that when your rent is covered through UC.  You're claiming benefits, how do you know this will be forever? What if you lose the DLA for your son? would you be able to continue to pay the mortgage if this happened?

When he reaches 16 he will have to apply for Personal Independence Payment (PIP) because DLA no longer exists for those aged between 16 and state pension age. DLA and PIP are 2 completely different benefits, with different criteria, will he qualify? Yes, there's 5 years until this happens but that will come around so quickly and it will be here before you know it.

You can claim for help with the mortgage through support for mortgage interest (SMI) after 9 concecutive months with zero earnings but this is just a loan and will need to be repaid back in the furture.  Yes, i know that working and having a mortgage is also a risk but the risk is much less.

The only time i would ever own my own home now is if i won the lottery..

I'm so sorry to hear about this Poppy. It must have been an awfully stressful time for you and I'm glad you've come out of the other side. 
I totally appreciate what your saying as currently my rent is being covered by UC. There is no guarantee my sons DLA will be renewed at 16 and that's why I would need to ensure that I can still afford the house without his DLA and without my Pip as well in case I lost that. My intention is to get back working part - time over the next couple of months and I would most likely recieve some UC until my youngest is around 18 or 19 and then I would be able to work full-time. I've been in your situation as well. My partner left me when he went to work and I was a student at university with two toddlers. He left me with debts up to my eye balls and a house I couldn't afford (rental) and it's taken 6 years to repair my credit.
I would now like to do it on my own instead of relying on anyone and buying just 25% seems a sensible way to go with UC covering the rent share but I absolutely take on board everything you've said and we may just stay where we are (if the owners don't sell) I'll see what happens. Take care xxx

[Deleted User]

NatalieanneDFW said:

cattie said:

Although I understand about wanting a secure roof over your heads, I agree with poppy as owning a property isn't just about paying the mortgage & you need to be sure you have a financial cushion before going ahead. There is the upkeep & maintenance to pay for, roof problems for example could cost in the £thousands if replacement is needed, a new boiler could set you back £2k or more. Buildings insurance is essential-probably billed along with service charges as part of the S0 scheme. I'd advise you to check out any extras on top of the mortgage that you might need to budget for.
Then there's the cost of the legals, will you have enough to pay for these to enable you to go ahead?

You don't say if your intention is to staircase in the future to be able to own a bigger proportion of the property, but until you own 100% there will never be full security as you will still be paying rent.

It's never wise to consider buying a property without a few thousand £ in the bank for emergencies I feel, so just be sure your financial position is sound before going ahead.

I totally understand all of that and the new build would come with a 10 year guarantee so I would expect the boiler to last a while. I have savings anyway and I'm very careful with money. I pay for most of the repairs in my privated rented house and I've had it decorated and I've had new lawn down etc. I'm very house proud.
Universal credit would pay the rent side of it. I would just need to pay the mortgage payment. They will also help with service charges but I absolutely agree that I need to be sure of all the legal aspects of it before moving forwards. Yes I would staircase in the future and universal credit will allow me the rent element so that's not of massive concern as even if I didn't staircase, I would just be able to pay the rent. 
I will continue research anyway, thanks. 

 You realise the 10 yr guarantee only applies to structural damage aka your walls start getting cracks because your house is poorly built and is falling down. It does not apply to general wear and tear and repairs to your boiler. 

 Ive been in this new build 7 yrs and paid for boiler repairs 5 times this year. Insurance excess only on that but still £60 each time. Twice since Christmas 😭As well as a replacement garage door, leaks in both bathroom and kitchen and replacement patio door glass. 

Savvy_Sue

NatalieanneDFW said: 

I haven't ruled out council but there isn't really many in my area and it's around an 8-10 year waiting list. Also I'm not sure if they would be suitable for my children. 

I presume you're also registered for anything going from local Housing Associations? It's usually a common list, and you get to bid for any properties for which you qualify. 

At least round here, the HAs are building and renovating significantly. 

NatalieanneDFW

_shel said:

NatalieanneDFW said:

cattie said:

Although I understand about wanting a secure roof over your heads, I agree with poppy as owning a property isn't just about paying the mortgage & you need to be sure you have a financial cushion before going ahead. There is the upkeep & maintenance to pay for, roof problems for example could cost in the £thousands if replacement is needed, a new boiler could set you back £2k or more. Buildings insurance is essential-probably billed along with service charges as part of the S0 scheme. I'd advise you to check out any extras on top of the mortgage that you might need to budget for.
Then there's the cost of the legals, will you have enough to pay for these to enable you to go ahead?

You don't say if your intention is to staircase in the future to be able to own a bigger proportion of the property, but until you own 100% there will never be full security as you will still be paying rent.

It's never wise to consider buying a property without a few thousand £ in the bank for emergencies I feel, so just be sure your financial position is sound before going ahead.

I totally understand all of that and the new build would come with a 10 year guarantee so I would expect the boiler to last a while. I have savings anyway and I'm very careful with money. I pay for most of the repairs in my privated rented house and I've had it decorated and I've had new lawn down etc. I'm very house proud.
Universal credit would pay the rent side of it. I would just need to pay the mortgage payment. They will also help with service charges but I absolutely agree that I need to be sure of all the legal aspects of it before moving forwards. Yes I would staircase in the future and universal credit will allow me the rent element so that's not of massive concern as even if I didn't staircase, I would just be able to pay the rent. 
I will continue research anyway, thanks. 

 You realise the 10 yr guarantee only applies to structural damage aka your walls start getting cracks because your house is poorly built and is falling down. It does not apply to general wear and tear and repairs to your boiler. 

 Ive been in this new build 7 yrs and paid for boiler repairs 5 times this year. Insurance excess only on that but still £60 each time. Twice since Christmas 😭As well as a replacement garage door, leaks in both bathroom and kitchen and replacement patio door glass. 

Sorry to hear that you've had to do so many repairs. I've been in my rental for 4 years and it's only needed a few bits and bobs. You wouldn't expect a new property to need so much! The builder gives a 2 year fixtures and fittings warranty but it would be up to me after that. I will certainly have a think about it all. Thank you! 

Sncjw

I have pip but for only 2 and a bit years. When I applied for mortgage I was working and so was my partner.. They did ask about any benefits and I told them about recently being awarded my pip but only got two years. They said to list it still even though it could be taken away from me. 

I wouldn't want the added stress if i had just my pip to rely on. You say its discrimination that you wouldn't get a house but the thing is that benefit could be taken away during reassessment. Also getting a mortgage is about affordability that's why they ask alot if financial question then they use their own algorithm to include daily living costs and then work out if you can afford a mortgage. Not just the rate and amount your going to be paying each month but alao for when it comes to renewing the mortgage after the fixed term the interest rates could go up so they are checking to see if you can afford that. 

NatalieanneDFW

Sncjw said:

I have pip but for only 2 and a bit years. When I applied for mortgage I was working and so was my partner.. They did ask about any benefits and I told them about recently being awarded my pip but only got two years. They said to list it still even though it could be taken away from me. 

I wouldn't want the added stress if i had just my pip to rely on. You say its discrimination that you wouldn't get a house but the thing is that benefit could be taken away during reassessment. Also getting a mortgage is about affordability that's why they ask alot if financial question then they use their own algorithm to include daily living costs and then work out if you can afford a mortgage. Not just the rate and amount your going to be paying each month but alao for when it comes to renewing the mortgage after the fixed term the interest rates could go up so they are checking to see if you can afford that. 

Thank you. I'm not replying on just pip. My son receives DLA and we get UC but I'm applying for part time work anyway. Unfortunately employment income is not guaranteed these days either so we can't just live avoiding every possible risk. Obviously I wouldn't take it on if I thought I couldn't afford it without DLA or Pip. Even if they were both taken off me, I would still receive UC along part time work and I have qualifications. If I lost all my income now then I couldn't afford my life as it is so if I was going by that then I shouldn't even be living in my current house or have anything. I should just be homeless. 
Totally get what your saying about interest. If it's through the roof then it's not an option. Simple as 🙂