Let to buy and benifit income help please

tajin777

I curently owned house, 13k left and thinking of paying of all by next year 2024. My house is value est 165k.
i am on universal credit/Dla (1child)care allowance and child benefits. Also dla for 2nd child is processing. Due to disability child i cant work atall. Wondering all these benefits will count as income ? Also my family will gift me around 15-20k when buying the house for deposit.
is it even possible for me to buy 250k to 300k house? 

My current house rent will be £800-£900 . Thats what i know on my street.

My expense total will be £1250 .
any suggestion? My husband is self employed but not been 1 yrs yet and earn £500 after all his self employment expenses 

TheJP

So you currently own your own home with £13k left to pay, you want to buy a property to rent out and are wondering if the government benefits you receive as your sole income will enable you to access a BTL mortgage. Few responses and questions below.

• Don't think child benefit can be counted as income, ours wasn't when we re-mortgaged.
• What would happen if your tenants decided not to pay rent? It can take 6-12 months to evict a tenant. How would you pay both mortgages?
• Have you considered the other and ongoing costs of being a landlord. Safety checks, tax, maintenance etc.

ArbitraryRandom

You should also be aware that you would count as self employed as a landlord (you would split the rental income with your partner on your tax returns based on the share of the property you owned; so I assume 50/50).

I'm not sure if that income would change any of your benefit awards/entitlements?

housebuyer143

I'm not sure how much your partner earns but you will not get £300k mortgage unless you have at least a 10% deposit and you need at least £60k income. 
Only a handful of lenders will accept DLA, most accept child benefit if income if not a higher rate tax payer. 

For BTL most lenders require a minimum earned income so no benefits are taken into account. You definitely can't do this without your partners income. 
You are better off selling your current house and buying a new one if you need to upsize. 

theartfullodger

housebuyer143 said:

..............

For BTL most lenders require a minimum earned income so no benefits are taken into account......................

Untrue:  I got a B2L mortgage when I was over 65 with no earned income:  Only pensions (4 private, one state), savings interest etc etc.  Mortgage runs to my age 80.

As an old person I'm getting 6 benefits (like most old people) thank you you generous tax-payers you :  Free prescriptions, £10 Xmas bonus, Free 'bus pass, Winter fuel allowance, Free eye tests, State pension... 

housebuyer143

theartfullodger said:

housebuyer143 said:

..............

For BTL most lenders require a minimum earned income so no benefits are taken into account......................

Untrue:  I got a B2L mortgage when I was over 65 with no earned income:  Only pensions (4 private, one state), savings interest etc etc.  Mortgage runs to my age 80.

As an old person I'm getting 6 benefits (like most old people) thank you you generous tax-payers you :  Free prescriptions, £10 Xmas bonus, Free 'bus pass, Winter fuel allowance, Free eye tests, State pension... 

That's why I said "most". 
No earned income, first time landlord and let to buy... It's narrowing the pool of lenders considerably. 

jonnydeppiwish!

I think, more to the point, why do you expect the tax payer to provide you with benefits when you can afford to buy a bigger house?

housebuyer143

jonnydeppiwish! said:

I think, more to the point, why do you expect the tax payer to provide you with benefits when you can afford to buy a bigger house?

Um...are you really saying that because someone has disabled children and claims disability benefits for them they should not be allowed to live in a larger house?  I imagine the OP claims carers allowance to, are you going to begrudge them claiming that measly £70 a week for providing full time care to two disabled individuals? 

DLA isn't means be tested so the OP is entitled to claim regardless of income as the money is provided to help support the children. Maybe having a larger house is essential for their development. Don't judge what you don't know.

tajin777

jonnydeppiwish! said:

I think, more to the point, why do you expect the tax payer to provide you with benefits when you can afford to buy a bigger house?

I gave up full time 25k job because of my 2 autistic child. I have worked fulltime for past 15yrs. Everything changed now. I work 24hrs now at home, sometime no sleep for 36 or more hrs. I live in very small house right now, i need house with garden and 3bedroom. 

Also when i can pull out 100k from my current house then why not buy a bigger house. Just wondering if benifits count toward mortgage or not. Its been only 3 yrs i m on benifits. Doing all these for first time. 

tajin777

housebuyer143 said:

I'm not sure how much your partner earns but you will not get £300k mortgage unless you have at least a 10% deposit and you need at least £60k income. 
Only a handful of lenders will accept DLA, most accept child benefit if income if not a higher rate tax payer. 

For BTL most lenders require a minimum earned income so no benefits are taken into account. You definitely can't do this without your partners income. 
You are better off selling your current house and buying a new one if you need to upsize. 

For the 2nd house is it still 10% deposit required? Lets say with all the benefits and my husband self employed income total is £30k per anum and can pull out 100k from current house (ltb) will that work? 

tajin777

ArbitraryRandom said:

You should also be aware that you would count as self employed as a landlord (you would split the rental income with your partner on your tax returns based on the share of the property you owned; so I assume 50/50).

I'm not sure if that income would change any of your benefit awards/entitlements?

It wont be share . I will be the sole owner for the both house.