Mortgage on benefits

Daisy_84

I’ve just had a bizarre conversation with someone who claims you can get a mortgage on benefits. Is that true? If that’s the case, then where is incentive for people to work?

silvercar

Depends what benefits, there are many eg child benefit where it wouldn’t be a barrier to buying on a mortgage. Remember that a lot of people on benefits also work, their benefits top up a very low income.

elsien

You are aware that not all benefits all means tested and some people who work full time claim benefits, some of whom who may potentially have a mortgage.
It’s lazy thinking to equate benefits with people who don’t want to work. 

https://www.moneyhelper.org.uk/en/family-and-care/illness-and-disability/getting-a-mortgage-if-youre-ill-or-disabled

Daisy_84

elsien said:

You are aware that not all benefits all means tested and some people who work full time claim benefits, some of whom who may potentially have a mortgage.
It’s lazy thinking to equate benefits with people who don’t want to work. 

https://www.moneyhelper.org.uk/en/family-and-care/illness-and-disability/getting-a-mortgage-if-youre-ill-or-disabled

It was a question. I’m not looking for an argument 🙄.

Daisy_84

silvercar said:

Depends what benefits, there are many eg child benefit where it wouldn’t be a barrier to buying on a mortgage. Remember that a lot of people on benefits also work, their benefits top up a very low income.

Thanks. That’s very helpful.

housebuyer143

Most mortgage companies take disability benefits into account as income.
I doubt you can get a very high mortgage on benefits alone. Probably not enough to buy a house.

Danieljw90

The likes of child benefit can actually increase your affordability as it’s taken into your overall income. 

On the flip side if someone is unemployed on universal credit (job seeker) then not a chance, you’d struggle to get a phone contract never mind a mortgage. 

mi-key

The incentive to work is that someone just on benefits and not working almost certainly wouldnt qualify for enough of a mortgage to buy anywhere, nor would they find it easy getting together a deposit.

However there are people who may have bought a house previously while working, then end up on disability benefits, and need to remortgage or move and in those cases their benefits are counted as income.