low income mortgages

separatedinsamehome

Hi all,

If I am a low income earner on 18,000 a year before tax, single parent, get universal credit and child benefit, what options do I have in getting a shared ownership home? I have been doing some research but am finding it all a bit confusing.Thankyou

Joeisaware539

It’s usually £18,000 x4 times your income = £72,000. As a gross figure. 

What deposit do you have?

csgohan4

SO is usually leasehold, or at the very least under a management company looking after repairs and maintenance externally. You are 100% liable for costs of repairs, despite owning less than 100% of the house. 

Owning a house at any cost, can be false economy. Make sure you know what your getting in to. Owning a house is expensive in terms of maintenance and repairs. No LL to run to if there's a problem that needs fixing

separatedinsamehome

Thanks for the replies, do they include any benefits received in calculations? Also would getting universal credit and child benefit qualify for any government schemes which help?
Thanks for giving the pros and cons of shared ownership, have looked into it further and still want to see how doable it could be.
Have seen several Government schemes like equity loans for deposits etc, but couldn't find anything which supports low income earners on benefits. I have been looking at the helptobuy scheme on gov.uk

Joeisaware539

separatedinsamehome said:

Thanks for the replies, do they include any benefits received in calculations? Also would getting universal credit and child benefit qualify for any government schemes which help?
Thanks for giving the pros and cons of shared ownership, have looked into it further and still want to see how doable it could be.
Have seen several Government schemes like equity loans for deposits etc, but couldn't find anything which supports low income earners on benefits. I have been looking at the helptobuy scheme on gov.uk

Could you save money for a bigger deposit?

separatedinsamehome

might be separating from my partner so don't have much time available to save, i could probably get a guarantor for the mortgage, but again not sure if thats doable

Joeisaware539

I think your income is going to be too low for a self applicant.