Government announces sweeping homeownership reforms

danjackson2021

Jaded2022 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 

Can anyone explain this new change?

”You'll be able to use housing benefit or the housing element of universal credit to contribute towards your mortgage. This money currently goes to private landlords or housing associations, but the Government says it's looking to change the rules to enable 1.5 million working people in receipt of housing benefits to put this towards a mortgage for their first home.  ”


how how is that different what has changed?

Good question and I don’t know what has changed

surely someone could use their UC now to help hem buy a property 

but there must be something changing to make it raider to use UC

danjackson2021

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.

Didn’t it used to be that someone with a mortgage who lost their job could get their interest paid for a while? 

Maybe it’s going back to that arrangement?

helsbels43

What about those receiving support mortgage interest? this is a loan which we have to pay back. Why is all the help for those to get on the property ladder, and those who rent,   us with mortgages we don't count then?  Due to changes of circumstances often  beyond our control we have to suffer still? 

First right to buy your council house and now this, how will the social housing stock survive? 

SuseOrm

danjackson2021 said:

Jaded2022 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 

Can anyone explain this new change?

”You'll be able to use housing benefit or the housing element of universal credit to contribute towards your mortgage. This money currently goes to private landlords or housing associations, but the Government says it's looking to change the rules to enable 1.5 million working people in receipt of housing benefits to put this towards a mortgage for their first home.  ”


how how is that different what has changed?

Good question and I don’t know what has changed

surely someone could use their UC now to help hem buy a property 

but there must be something changing to make it raider to use UC

Yes so the changes are currently if you rented £600 per month of your universal credit would be allocated because you need to pay rent.  Know if you owned your property and had a mortgage instead you simply wouldn’t get that £600 before now you will.  

Retrospectively those who took out the loans to help with the interest on their mortgage SMI obviously they haven’t announced what’s gonna happen to that hopefully they’ll be moved over to this new plan ASAP.  

danjackson2021

Maybe when working out 4x income they will take into account UC ?

danjackson2021

SavingPennies_2 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.

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.

Yes exactly but how the hell would someone on UC ever get a mortgage approved?

maybe there is going to be a government scheme to subsidise the mortgage 4 or 5 times total income including benefits 

but they would still need a deposit?

SuseOrm

danjackson2021 said:

SavingPennies_2 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.

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.

Yes exactly but how the hell would someone on UC ever get a mortgage approved?

maybe there is going to be a government scheme to subsidise the mortgage 4 or 5 times total income including benefits 

but they would still need a deposit?

Currently certain lenders will already take universal credits into account for affordability so actually it could be as little as three times their salary and has been repeatedly stated on this thread it’s going to be a 98% mortgage.  

So yes they’ve got to say have something to show that they’re financially prudent but it could be as little as seven grand

SuseOrm

*save something 

Morglin

A recipe for disaster, where means tested benefit claimants are concerned.

Those on UC, working or not, are on the lowest incomes, and are the highest food bank users.  They say they cannot live on the amount they get.

How on earth can they afford a mortgage and the costs that come with home ownership?  What about service changes, lease charges, structural maintenance etc.,?

The government didn't even seem to know the rules around the deposits required, by banks.

When told that anyone on UC can't have more than £16k in the bank, and that it wouldn't be enough of a deposit, Johnson felt there may be a way for taxpayers to lend/give the deposits to those on UC.🙄

This will lead to debt, repossessions and chaos-  sub prime lending caused the last crash in 2008.

Anyone, on a low income, in a HA property, would be best to stay as they are and continue to rent it.

They have real security of tenure, assuming the rent is paid, and no anti-social behaviour.  They can make home improvements, the rents charges are moderate, and if their circumstances change, they can get extra help with the rent.

Crazy idea to encourage the poorest to lumber themselves with a mortgage -and it will further increase the affordable housing crisis. 🙁

Besdes which, this will be yet another burden on the taxpayer.

Morglin

According to the government, this scheme is only for those currently renting an HA property.