Government announces sweeping homeownership reforms

martindow

If there is to be a discount offered wouldn't this be considered the deposit?  I'm not sure why the UC savings limit would need to be changed.

Norman_Castle

CB1968 said:

Norman_Castle said:

CB1968 said:

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.

What makes someone eligible for a mortgage or not?

The government might legislate that benefits can be used towards mortgages but will mortgage providers lend based on them?

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.

It could be argued that receiving benefits due to a long term or lifelong disability is a more stable income than from working.

BikingBud

CB1968 said:

theoretica said:

CB1968 said:

What makes someone eligible for a mortgage or not?

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...

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 taxpayer's money, paid to an individual, to pay for the purchase of a house rather than the rental of a house from a landlord.

Sorted that.

So taxpayers will now see their hard earned go to bank profits rather than private landlord's pension pots.

Facts:

1. The consumer always pays!
2. The bank always wins!
3. Taxes are never fair!

CB1968

BikingBud said:

CB1968 said:

theoretica said:

CB1968 said:

What makes someone eligible for a mortgage or not?

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...

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 taxpayer's money, paid to an individual, to pay for the purchase of a house rather than the rental of a house from a landlord.

Sorted that.

So taxpayers will now see their hard earned go to bank profits rather than private landlord's pension pots.

Facts:

1. The consumer always pays!
2. The bank always wins!
3. Taxes are never fair!

That, by it's nature, is state money; it's like saying beef burgers are made of meat and being surprised.  But there is the possibility that state payout is limited by the available length of mortgages, rather than a never ending payout. 

The sign of a civilised society is that it cares for the weak and infirm. Hell, even the Neanderthals cared for the weak and infirm!

Sarah1Mitty2

Jaded2022 said:

aoleks said:

hmmm... why do I have the feeling we're yet to see another huge spike of house prices?

More like desperate attempt to prop up the nine times income house price bubble 

That is mainly just London though?

SavingPennies_2

Sarah1Mitty2 said:

Jaded2022 said:

aoleks said:

hmmm... why do I have the feeling we're yet to see another huge spike of house prices?

More like desperate attempt to prop up the nine times income house price bubble 

That is mainly just London though?

Nope, same in many parts of the UK

housebuyer143

Norman_Castle said:

CB1968 said:

Norman_Castle said:

CB1968 said:

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.

What makes someone eligible for a mortgage or not?

The government might legislate that benefits can be used towards mortgages but will mortgage providers lend based on them?

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.

It could be argued that receiving benefits due to a long term or lifelong disability is a more stable income than from working.

I believe a lot of lenders take disability benefits if they are awarded indefinitely, so the banks agree with you on that one. 

housebuyer143

How does the government think this policy is going to help?
One: You actually have to be able to save for a deposit on universal credit.
Two: you face the lenders affordability checks which is likely 4-4.5x your salary.

I would argue the biggest hindrance to homeownership is that.  If you earn £25k and the bank will lend you £100k, you need a really ridiculous deposit in most places in the country to afford anything. 

SuseOrm

BikingBud said:

CB1968 said:

theoretica said:

CB1968 said:

What makes someone eligible for a mortgage or not?

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...

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 taxpayer's money, paid to an individual, to pay for the purchase of a house rather than the rental of a house from a landlord.

Sorted that.

So taxpayers will now see their hard earned go to bank profits rather than private landlord's pension pots.

Facts:

1. The consumer always pays!
2. The bank always wins!
3. Taxes are never fair!

At least with the mortgage though there’s an end date where is somebody could literally spend their life on housing benefit from 18 to death basically.  

SuseOrm

@housebuyer143 there are houses up north for £80,000 still.  

Where are used to live you could actually buy a beautiful house for 150 so if you were earning 25,000 as a salary being topped up to £35,000 by universal credit you would more than qualify for that mortgage the issue is the deposit and I see them removing that too.  If not most people‘s parents could find £7 1/2 grand for you.  

And let’s be honest plenty of our parents bought houses on 100% mortgage and wouldn’t be in the position that they’re in now today if it had not been available to them.  

I worked two jobs for one year to couple together £3000 as a 5% deposit on my house back in the day it’s certainly doable.