Sweeping plans designed to get more people onto the property ladder have been announced by the Prime Minister today (9 June). It comes as homes now cost nine times people's incomes, according to the Government, with first-time buyers able to afford monthly mortgage payments but not deposits.
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'Sweeping plans designed to help people onto the property ladder announced by the Prime Minister - here's what you need to know'
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Government announces sweeping homeownership reforms
Comments
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The government might legislate that benefits can be used towards mortgages but will mortgage providers lend based on them?CB1968 said:aoleks said:
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.CB1968 said:
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.aoleks said:
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.CB1968 said:
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.aoleks said:
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.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'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.
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.
What makes someone eligible for a mortgage or not?
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This isn't going to help at all.0
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Whether a bank will lend to them or not - which will depend on the bank's assessment of their income and the stability of it. If the bank thinks that the person applying for a mortgage will get a certain level of Universal Credit they may presumably choose to take it into account in their lending. Or may think the government will change their mind next year and the bank decide not to lend...CB1968 said:
What makes someone eligible for a mortgage or not?
But a banker, engaged at enormous expense,Had the whole of their cash in his care.
Lewis Carroll0 -
The Government granting permission for it to happen would be a big step where there is currently no route at all, and some mortgage lenders (Triodos, for example), may be more amenable to agreements if you are able to show a stable income due to a long term (or likely long term), illness.Norman_Castle said:
The government might legislate that benefits can be used towards mortgages but will mortgage providers lend based on them?CB1968 said:aoleks said:
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.CB1968 said:
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.aoleks said:
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.CB1968 said:
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.aoleks said:
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.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'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.
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.
What makes someone eligible for a mortgage or not?
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yes, I do. they would just count as people in work, right?Tahlullah.H said:aoleks said:
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?
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.0 -
And that was the point in asking the question; someone who is disabled and unable to work but with a stable income (housing benefit), should be able to access the option of buying their own home, according to reasoning of Boris Johnson. That is, that it is better for state money, paid to an individual, to pay for the purchase of a house rather than the rental of a house from a landlord.theoretica said:
Whether a bank will lend to them or not - which will depend on the bank's assessment of their income and the stability of it. If the bank thinks that the person applying for a mortgage will get a certain level of Universal Credit they may presumably choose to take it into account in their lending. Or may think the government will change their mind next year and the bank decide not to lend...CB1968 said:
What makes someone eligible for a mortgage or not?0 -
again, you can't use a hypothetical payment to apply for a mortgage. right now, people un UC receiving help with rent costs are receiving them because the amount of housing costs is known. if you're renting and thinking about a mortgage, what payment is the bank supposed to take into account? a promise of a payment that you might or might not get?CB1968 said:
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?aoleks said:
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.CB1968 said:
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.aoleks said:
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.CB1968 said:
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.aoleks said:
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.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'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.
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.
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?
you're mixing two things:
1. people on benefits will be able to save more than £16000 towards a house deposit. this has nothing to do with being in work or being disabled or not. it simply says that savings towards a house will be exempt from income assessments.
2. should you already have a mortgage and are getting UC, but no housing element (because currently UC doesn't cover mortgage payments) or not getting UC because without the a housing element you're eligible, things will change. you will either be able to continue to claim housing benefit for the property you already own OR, if you get a mortgage (with a salary), once you start paying it back, you will be able to apply for benefits.
I don't think the story about people being able to use a rental income on their mortgage application.0 -
What on earth is an 'hypothetical payment'?aoleks said:
again, you can't use a hypothetical payment to apply for a mortgage. right now, people un UC receiving help with rent costs are receiving them because the amount of housing costs is known. if you're renting and thinking about a mortgage, what payment is the bank supposed to take into account? a promise of a payment that you might or might not get?CB1968 said:
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?aoleks said:
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.CB1968 said:
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.aoleks said:
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.CB1968 said:
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.aoleks said:
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.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'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.
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.
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?
you're mixing two things:
1. people on benefits will be able to save more than £16000 towards a house deposit. this has nothing to do with being in work or being disabled or not. it simply says that savings towards a house will be exempt from income assessments.
2. should you already have a mortgage and are getting UC, but no housing element (because currently UC doesn't cover mortgage payments) or not getting UC because without the a housing element you're eligible, things will change. you will either be able to continue to claim housing benefit for the property you already own OR, if you get a mortgage (with a salary), once you start paying it back, you will be able to apply for benefits.
I don't think the story about people being able to use a rental income on their mortgage application.
People in receipt of housing benefit get paid a certain amount according to the area they live in and their qualifying status: that should denote the mortgage they could afford, unless they can prove mitigating factors as to why the mortgage should be higher.
I think you need to look again at what was said; this was about people getting on the housing ladder, and my question regarding the separation of those in receipt of housing benefit and able to work versus those in receipt but unable to work, stands: the argument against the use of public funds to pay landlords instead of buying houses should work for all.0 -
Legislation for benefits to be considered as income is already in place and lenders do lend against that income,Norman_Castle said:
The government might legislate that benefits can be used towards mortgages but will mortgage providers lend based on them?CB1968 said:aoleks said:
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.CB1968 said:
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.aoleks said:
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.CB1968 said:
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.aoleks said:
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.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'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.
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.
What makes someone eligible for a mortgage or not?1
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