Government announces sweeping homeownership reforms

aoleks

CB1968 said:

aoleks said:

CB1968 said:

What about the long-term disabled, who have a lifetime of housing benefit payments and have to live with the continual risk of losing their home, because the landlord decides to sell, or simply no longer wants to lease a property to benefits claimants because of perceived problems?

I don't know, but this question is completely unrelated to the announcement today. what you asked about can happen anytime, even now, the changes announced won't change that.

Considering the announcement makes provision for those in receipt of housing benefit but in work and seeks to channel state funds into buying houses rather than paying landlords, I think my post is absolutely pertinent. I'm sorry if you do not.

I don't think that's right. if the housing element will be available to those who have mortgages, it won't matter if you work or not, or whether you're disabled or not. as long as you have a mortgage and are on universal credit, you will be eligible. from that perspective, there's no discrimination against disabled people.

I'm not sure how someone on disability benefits will be able to obtain a mortgage in the first place, hence the mention of "working" people.

robbiemann

Isn't this how the subprime mortgage crash started?

aoleks

robbiemann said:

Isn't this how the subprime mortgage crash started?

no. the subprime mortgage crash started with greedy, American banks allowing people to self-certify their incomes without even checking their residency or payslips. basically anyone who wanted a penthouse could more or less buy one. as these people obviously didn't have the means to pay, they started defaulting, which brought the price of other, normal borrowers' houses down too. why pay x when your house is worth half? so people started defaulting in masses...

as opposed to the UK, where mortgage applications are very strict, require a minimum deposit, checks source of funds, employment, outgoings and ID and stress tests affordability to an APR much higher than what the current market can offer.

completely different approach and not at all comparable!

daveyjp

Thrre's a long way between a speech today and anything coming into force.  This is all about manifesto kite flying.

CB1968

aoleks said:

CB1968 said:

aoleks said:

CB1968 said:

What about the long-term disabled, who have a lifetime of housing benefit payments and have to live with the continual risk of losing their home, because the landlord decides to sell, or simply no longer wants to lease a property to benefits claimants because of perceived problems?

I don't know, but this question is completely unrelated to the announcement today. what you asked about can happen anytime, even now, the changes announced won't change that.

Considering the announcement makes provision for those in receipt of housing benefit but in work and seeks to channel state funds into buying houses rather than paying landlords, I think my post is absolutely pertinent. I'm sorry if you do not.

I don't think that's right. if the housing element will be available to those who have mortgages, it won't matter if you work or not, or whether you're disabled or not. as long as you have a mortgage and are on universal credit, you will be eligible. from that perspective, there's no discrimination against disabled people.

I'm not sure how someone on disability benefits will be able to obtain a mortgage in the first place, hence the mention of "working" people.

It's unclear, but the suggestion seems to be that people able to work, whether in work or not, would be able to secure or pay mortgages with housing benefit. I'm simply asking that the long term disabled can also use housing benefit payments in a similar manner.

SavingPennies_2

aoleks said:

CB1968 said:

aoleks said:

CB1968 said:

What about the long-term disabled, who have a lifetime of housing benefit payments and have to live with the continual risk of losing their home, because the landlord decides to sell, or simply no longer wants to lease a property to benefits claimants because of perceived problems?

I don't know, but this question is completely unrelated to the announcement today. what you asked about can happen anytime, even now, the changes announced won't change that.

Considering the announcement makes provision for those in receipt of housing benefit but in work and seeks to channel state funds into buying houses rather than paying landlords, I think my post is absolutely pertinent. I'm sorry if you do not.

I don't think that's right. if the housing element will be available to those who have mortgages, it won't matter if you work or not, or whether you're disabled or not. as long as you have a mortgage and are on universal credit, you will be eligible. from that perspective, there's no discrimination against disabled people.

I'm not sure how someone on disability benefits will be able to obtain a mortgage in the first place, hence the mention of "working" people.

Have I completely misread? From what I understand this is not for people who already have mortgages, but is aimed at those renting and looking to buy for their first time.

aoleks

CB1968 said:

aoleks said:

CB1968 said:

aoleks said:

CB1968 said:

What about the long-term disabled, who have a lifetime of housing benefit payments and have to live with the continual risk of losing their home, because the landlord decides to sell, or simply no longer wants to lease a property to benefits claimants because of perceived problems?

I don't know, but this question is completely unrelated to the announcement today. what you asked about can happen anytime, even now, the changes announced won't change that.

Considering the announcement makes provision for those in receipt of housing benefit but in work and seeks to channel state funds into buying houses rather than paying landlords, I think my post is absolutely pertinent. I'm sorry if you do not.

I don't think that's right. if the housing element will be available to those who have mortgages, it won't matter if you work or not, or whether you're disabled or not. as long as you have a mortgage and are on universal credit, you will be eligible. from that perspective, there's no discrimination against disabled people.

I'm not sure how someone on disability benefits will be able to obtain a mortgage in the first place, hence the mention of "working" people.

It's unclear, but the suggestion seems to be that people able to work, whether in work or not, would be able to secure or pay mortgages with housing benefit. I'm simply asking that the long term disabled can also use housing benefit payments in a similar manner.

again, that's not what they said. what they said is that people who are eligible for mortgages (or already have one), will be able to use the housing element of UC to pay for them, which is currently not possible, as it only applies to rents. if you're disabled and on universal credit, the housing element will cover your rent. IF!!! you can secure a mortgage somehow (unlikely without a job), you will be able to pay your mortgage (or part thereof) using that housing benefit allowance.

what this will NOT do is allow you to use a housing element allowance (what allowance, if you don't have a valid claim in the first place???) to apply for a mortgage instead.

first you get the mortgage, THEN you can use it to pay for it.

so in the case you described, where disabled people are on universal credit and get their rent paid, unless they get a mortgage, there's nothing to move to, so they stay in the same situation.

Norman_Castle

Factual facts. https://www.gov.uk/government/news/right-to-buy-extension-to-make-home-ownership-possible-for-millions-more-people

It does state this is for "hard working people" but I suspect lazy gits on a decent wage could also take advantage of it.

Tahlullah.H

aoleks said:

I'm not sure how someone on disability benefits will be able to obtain a mortgage in the first place, hence the mention of "working" people.

You do know that people with disabilities are fully capable of working and supporting themselves and their families?  And as such, fully able, dependent on salary level, to obtain a mortgage AND disability benefits at the same time?

CB1968

aoleks said:

CB1968 said:

aoleks said:

CB1968 said:

aoleks said:

CB1968 said:

What about the long-term disabled, who have a lifetime of housing benefit payments and have to live with the continual risk of losing their home, because the landlord decides to sell, or simply no longer wants to lease a property to benefits claimants because of perceived problems?

I don't know, but this question is completely unrelated to the announcement today. what you asked about can happen anytime, even now, the changes announced won't change that.

Considering the announcement makes provision for those in receipt of housing benefit but in work and seeks to channel state funds into buying houses rather than paying landlords, I think my post is absolutely pertinent. I'm sorry if you do not.

I don't think that's right. if the housing element will be available to those who have mortgages, it won't matter if you work or not, or whether you're disabled or not. as long as you have a mortgage and are on universal credit, you will be eligible. from that perspective, there's no discrimination against disabled people.

I'm not sure how someone on disability benefits will be able to obtain a mortgage in the first place, hence the mention of "working" people.

It's unclear, but the suggestion seems to be that people able to work, whether in work or not, would be able to secure or pay mortgages with housing benefit. I'm simply asking that the long term disabled can also use housing benefit payments in a similar manner.

again, that's not what they said. what they said is that people who are eligible for mortgages (or already have one), will be able to use the housing element of UC to pay for them, which is currently not possible, as it only applies to rents. if you're disabled and on universal credit, the housing element will cover your rent. IF!!! you can secure a mortgage somehow (unlikely without a job), you will be able to pay your mortgage (or part thereof) using that housing benefit allowance.

what this will NOT do is allow you to use a housing element allowance (what allowance, if you don't have a valid claim in the first place???) to apply for a mortgage instead.

first you get the mortgage, THEN you can use it to pay for it.

so in the case you described, where disabled people are on universal credit and get their rent paid, unless they get a mortgage, there's nothing to move to, so they stay in the same situation.

Changes were suggested that would allow people in receipt of housing benefit to save for a deposit, as well as using housing benefit to pay for a mortgage. This suggests that it is for people looking to get on the housing ladder; what qualifies one person but not another, other than that one is able to work but another is not?

There may be any number of ways in which a person not able to work may be able to save for a deposit, so why can they not use their housing benefit payments to then pay for the mortgage?

And many long term disabled who are unable to work also benefit from stable housing benefit payments, which is not always a given for those on low wages, so, again, why are they not able to get a mortgage and use HB payments to pay that mortgage.

What makes someone eligible for a mortgage or not?