Government announces sweeping homeownership reforms

SuseOrm

Morglin said:

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

Where did you read that ? 

Exodi

SuseOrm said:

Morglin said:

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

Where did you read that ? 

I think he's probably just referring to the Right to Buy scheme being pseudo-extended to HA tenants.

danjackson2021

If someone gets about £2K UC and earns about £1K per month, then will the bank lend based on 5X total income including UC?

SuseOrm

danjackson2021 said:

If someone gets about £2K UC and earns about £1K per month, then will the bank lend based on 5X total income including UC?

Correct and that is the current status with I know the Natwest does that off the top of my head.  

It was frustrating from my perspective because I got nearly £600 of months in child-support for the length of the mortgage which was completely disregarded,  they wouldn’t account for that at all but the 30 quid I’m on universal credits that went in the pot.  

danjackson2021

SuseOrm said:

danjackson2021 said:

If someone gets about £2K UC and earns about £1K per month, then will the bank lend based on 5X total income including UC?

Correct and that is the current status with I know the Natwest does that off the top of my head.  

It was frustrating from my perspective because I got nearly £600 of months in child-support for the length of the mortgage which was completely disregarded,  they wouldn’t account for that at all but the 30 quid I’m on universal credits that went in the pot.  

So if that’s the current status then what is the proposed change?

SuseOrm

danjackson2021 said:

SuseOrm said:

danjackson2021 said:

If someone gets about £2K UC and earns about £1K per month, then will the bank lend based on 5X total income including UC?

Correct and that is the current status with I know the Natwest does that off the top of my head.  

It was frustrating from my perspective because I got nearly £600 of months in child-support for the length of the mortgage which was completely disregarded,  they wouldn’t account for that at all but the 30 quid I’m on universal credits that went in the pot.  

So if that’s the current status then what is the proposed change?

As also stated further up in the thread currently if you rent you would get £600 in universal credits that you would be paying to your landlord in rent under the new proposed scheme you could be allocated £600 which you can used to pay a mortgage with that currently you are not receiving.  

So for example I receive £30 a week in universal credits,  my housing costs are £733 a month but because those costs are going towards paying a mortgage I do not receive any help with that cost.  If I was renting a property I would receive £600 extra that I currently do not get.  

The extra £600 per month will give me a cushion with which to over pay the mortgage and will decrease the likelihood of my ever being homeless and landing on the governments doorstep demanding that they house me and the children at great expense to the government.  

Others have stated that they’ve bought their house before they had their children and it no longer meets their needs they’re desperate to move but they can’t because they would get no assistance it’s going to improve the quality of their lives no end.  

housebuyer143

SuseOrm said:

@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.  

If you live up North, yes. But anywhere that isnt in the North its not really possible. My sister wants a 2 bed house for her, her husband and her daughter.  Its £250k minimum, even in parts of Wales now its £240k for a 3 bed semi. She can borrow £100k. She will never be able to save a £150k deposit, it wont happen and so home ownership for people like her is almost impossible.. 

Sarah1Mitty2

housebuyer143 said:

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. 

And the HA will no longer do repairs, including big structural repairs? Plus this alienates all the voters/potential buyers not on benefits or in HA housing who are watching their borrowing costs climb and can`t afford the monthly mortgage payment that they thought they could  a few months ago.

SuseOrm

housebuyer143 said:

SuseOrm said:

@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.  

If you live up North, yes. But anywhere that isnt in the North its not really possible. My sister wants a 2 bed house for her, her husband and her daughter.  Its £250k minimum, even in parts of Wales now its £240k for a 3 bed semi. She can borrow £100k. She will never be able to save a £150k deposit, it wont happen and so home ownership for people like her is almost impossible.. 

i’m honestly not trying to be an !!!!!! here but like I’d really like a Porsche 911 and ownership of that is not going to be possible for me either.  

The government cannot cover every single eventuality.  A two minute search of Cardiff shows that you can buy a two Bedroomed house there for £150k so with respect you just gotta cut your cloth accordingly

Sarah1Mitty2

SuseOrm said:

housebuyer143 said:

SuseOrm said:

@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.  

If you live up North, yes. But anywhere that isnt in the North its not really possible. My sister wants a 2 bed house for her, her husband and her daughter.  Its £250k minimum, even in parts of Wales now its £240k for a 3 bed semi. She can borrow £100k. She will never be able to save a £150k deposit, it wont happen and so home ownership for people like her is almost impossible.. 

i’m honestly not trying to be an !!!!!! here but like I’d really like a Porsche 911 and ownership of that is not going to be possible for me either.  

The government cannot cover every single eventuality.  A two minute search of Cardiff shows that you can buy a two Bedroomed house there for £150k so with respect you just gotta cut your cloth accordingly

A Porsche isn`t essential though, decent housing is, and what is the average wage in Cardiff and how many jobs are available?