Will it affect my benefits pls?

poppy12345

Channy8 said:

poppy12345 said:

Channy8 said:

Sncjw said:

Can i ask how will you get mortgage on benefits?

If you have a low income it might be a struggle. 

i spoke to a broker who said its possible to get mortgage if you are on benefits.

Anything is possible but you still may not find it that easy. Especially if the broker you spoke to doesn't know anything about your financial situation. Getting a mortgage definitely isn't easy these days.

You also need to think about any repairs that will need doing in the future. Will you have the money to be able to afford those? When renting the repairs are down to your landlord.

There's also the deposit that you will need for any mortgage...lots of things to think about.

My daughter and her partner have just had their mortgage agreed but the whole process took just over 3 months and they both work full time and earn a little over £40,000 a year between them.

using Right to buy, the house shouldnt be more than £70k . I think i can manage it well. Thanks

My daughters mortgage was for £63K and all i can tell you is that it's not going to be easy getting a mortgage while your income is solely from benefits.

MalMonroe

Channy8 said:

Hello

I m considering buying my council house next year.

If i buy my council house, will it affect the benefits i receive like child tax credit, carers allowance, housing allowance and income support?

I see some people are being a bit judgemental here but I assume that you will be eligible for the Right to Buy discount that's available to council tenants? I am a council tenant too and am thinking of buying my home next year through the same scheme. 

The right to buy discount can be quite high if you've been a tenant for a number of years so the mortgage you need won't be as high as it could be without that discount. Plus, I've been doing some research and some lenders will accept the discount councils give as a deposit and lend you the balance. When I do it, I intend to pay as much as I can though, so the mortgage is as small as possible. My initial calculations (taking into account all the things I'll be expected to pay) are already working out to be much less than I pay in rent.  

Obviously, it is something that you have to think carefully about and ensure that you have worked out all the figures - you often hear about people whose properties have been repossessed because they could not keep up the mortgage - but there's no reason why you shouldn't become a home-owner. Good luck!

MalMonroe

McKneff said:

You really think you are going to get a 70k mortgage on benefits

Its highly unlikely to be honest, they will take account all ither outgoings
Give us some numbers so we can give a more accurate answer

OP just wanted to know if buying the house would affect their benefits. Not whether they could afford the property or not. We don't want, or need any numbers since that's nothing to do with the question.

Buying a property with a council Right to Buy scheme means you get a discount on a sliding scale, depending on how long you've been a tenant. Lenders WILL consider borrowers on benefits and, as the OP said, they have already consulted a broker. 

poppy12345

I don’t see any judgemental comments here, just people thinking logically.
I realise how nice it would be for people to own their own home, rather than rent. Been there done it many years ago. Sadly for me, my marriage broke down and I couldn’t keep up the repayments on my mortgage so my home was repossessed… my children were small at the time and I was given 2 weeks to find somewhere else to live, it was the most stressful time of my whole life. I was a working parent, didn’t claim any benefits at the time but sadly still lost my home. 

Channy8

poppy12345 said:

Channy8 said:

poppy12345 said:

Channy8 said:

Sncjw said:

Can i ask how will you get mortgage on benefits?

If you have a low income it might be a struggle. 

i spoke to a broker who said its possible to get mortgage if you are on benefits.

Anything is possible but you still may not find it that easy. Especially if the broker you spoke to doesn't know anything about your financial situation. Getting a mortgage definitely isn't easy these days.

You also need to think about any repairs that will need doing in the future. Will you have the money to be able to afford those? When renting the repairs are down to your landlord.

There's also the deposit that you will need for any mortgage...lots of things to think about.

My daughter and her partner have just had their mortgage agreed but the whole process took just over 3 months and they both work full time and earn a little over £40,000 a year between them.

using Right to buy, the house shouldnt be more than £70k . I think i can manage it well. Thanks

My daughters mortgage was for £63K and all i can tell you is that it's not going to be easy getting a mortgage while your income is solely from benefits.

I got my Mortgage Decision in principle solely on benefits and child maintenance

calcotti

Congratulations.

kaMelo

Channy8 said:

poppy12345 said:

Channy8 said:

poppy12345 said:

Channy8 said:

Sncjw said:

Can i ask how will you get mortgage on benefits?

If you have a low income it might be a struggle. 

i spoke to a broker who said its possible to get mortgage if you are on benefits.

Anything is possible but you still may not find it that easy. Especially if the broker you spoke to doesn't know anything about your financial situation. Getting a mortgage definitely isn't easy these days.

You also need to think about any repairs that will need doing in the future. Will you have the money to be able to afford those? When renting the repairs are down to your landlord.

There's also the deposit that you will need for any mortgage...lots of things to think about.

My daughter and her partner have just had their mortgage agreed but the whole process took just over 3 months and they both work full time and earn a little over £40,000 a year between them.

using Right to buy, the house shouldnt be more than £70k . I think i can manage it well. Thanks

My daughters mortgage was for £63K and all i can tell you is that it's not going to be easy getting a mortgage while your income is solely from benefits.

I got my Mortgage Decision in principle solely on benefits and child maintenance

I notice you only mention DIP, did you go on to get an actual mortgage offer?
Each application is judged on it's own merits such as applicant(s) credit history , income, debts, LTV ratio etc.

If you did go on to get an actual mortgage offer then that's great for you but it has no bearing upon whether anyone else such as the OP would. The only way to find that out would be to apply, any lender would then judge based upon the information supplied, information they gathered from elsewhere and then compare it to their lending criteria..

Spoonie_Turtle

kaMelo said:

Channy8 said:

poppy12345 said:

Channy8 said:

poppy12345 said:

Channy8 said:

Sncjw said:

Can i ask how will you get mortgage on benefits?

If you have a low income it might be a struggle. 

i spoke to a broker who said its possible to get mortgage if you are on benefits.

Anything is possible but you still may not find it that easy. Especially if the broker you spoke to doesn't know anything about your financial situation. Getting a mortgage definitely isn't easy these days.

You also need to think about any repairs that will need doing in the future. Will you have the money to be able to afford those? When renting the repairs are down to your landlord.

There's also the deposit that you will need for any mortgage...lots of things to think about.

My daughter and her partner have just had their mortgage agreed but the whole process took just over 3 months and they both work full time and earn a little over £40,000 a year between them.

using Right to buy, the house shouldnt be more than £70k . I think i can manage it well. Thanks

My daughters mortgage was for £63K and all i can tell you is that it's not going to be easy getting a mortgage while your income is solely from benefits.

I got my Mortgage Decision in principle solely on benefits and child maintenance

I notice you only mention DIP, did you go on to get an actual mortgage offer?
Each application is judged on it's own merits such as applicant(s) credit history , income, debts, LTV ratio etc.

If you did go on to get an actual mortgage offer then that's great for you but it has no bearing upon whether anyone else such as the OP would. The only way to find that out would be to apply, any lender would then judge based upon the information supplied, information they gathered from elsewhere and then compare it to their lending criteria..

Channy8 is the OP

kaMelo

Indeed,  I missed that    

(note to self, engage brain before opening mouth)

Alice_Holt

I'd suggest doing some financial budgets / forecasts before committing to a mortgage.

Factor in that you won't be in receipt of housing benefit any more, but will have mortgage repayments, house insurance, house maintenance to pay out of your income support, child tax credit, child maintenance, and carers allowance.

Think about possible adverse events i.e.
what might happen if your carers allowance stopped because the person you care for had a flawed disability assessment,
when your child(ren) turn 18,
when the average cost of heating a home hits £3k pa next winter,
the Increase in the cost of food, clothing, etc rising faster than any increase to benefits,
would you former partner help out financially if things became difficult, over and above the existing child maintenance,
the need for an emergency fund to cover unexpected expenses such as house repairs.