Benefits change towards mortgage

danjackson2021

These changes coming in mean someone on benefits can use their benefits income to work out mortgage?

I wonder what other help there will be so someone can get a deposit together?

poppy12345

Yes but it doesn't mean a mortgage company will accept someone purely living on benefits.

calcotti

poppy12345 said:

Yes but it doesn't mean a mortgage company will accept someone purely living on benefits. 

Nor will it help pay the cost of property maintenance, associated legal costs etc.

danjackson2021 said:

I wonder what other help there will be so someone can get a deposit together?

Suggestion that capital in a Lifetime ISA will be disregarded for benefits purposes.

TELLIT01

There will be no help to build up the deposit.  In fact anybody accumulating more than £16k towards a deposit will lose any right to income related benefits anyway.

calcotti

TELLIT01 said:

There will be no help to build up the deposit.  In fact anybody accumulating more than £16k towards a deposit will lose any right to income related benefits anyway.

Although, as noted in my previous reply, the speech indicated that the government may introduce a disregard for money held in a Lifetime ISA.

NedS

calcotti said:

TELLIT01 said:

There will be no help to build up the deposit.  In fact anybody accumulating more than £16k towards a deposit will lose any right to income related benefits anyway.

Although, as noted in my previous reply, the speech indicated that the government may introduce a disregard for money held in a Lifetime ISA.

and there was an interesting little slip up about pensions mentioned - I wonder if they are looking at tightening the regulations there.

danjackson2021

TELLIT01 said:

There will be no help to build up the deposit.  In fact anybody accumulating more than £16k towards a deposit will lose any right to income related benefits anyway.

Not anymore there has been a change proposal 

if it’s in a help to buy mortgage saver account it will not affect benefits 

poppy12345

danjackson2021 said:

TELLIT01 said:

There will be no help to build up the deposit.  In fact anybody accumulating more than £16k towards a deposit will lose any right to income related benefits anyway.

Not anymore there has been a change proposal 

if it’s in a help to buy mortgage saver account it will not affect benefits 

Not yet it hasn't. It was "suggested"

GingerTim

Like many of Johnson's 'policy' announcements, I'll be astonished if this ever comes to pass.

gbhxu

I suppose it's no different to paying a private landlord who has a property on "buy to let"

Rather surprized that we've had nobody complaining about the current situation with mortgage interest loans

NedS

gbhxu said:

I suppose it's no different to paying a private landlord who has a property on "buy to let"

Rather surprized that we've had nobody complaining about the current situation with mortgage interest loans

I think the detail of the scheme will be key, how would it work.

Would existing benefit claimants who already own their own house with a mortgage be able to benefit?

What happens if you buy your house using this scheme and then your claim closes and you have to make a new claim as a home owner - would you still get help?

This sounds like something that will be very difficult to implement in a way that is fair to all home owners with a mortgage. Maybe they take a view that it will be cheaper to pay a mortgage than pay rising rents. I get the sense the motivation is more about cutting benefit costs than helping people buy their first home.