Universal Credit and Mortgages

Cintakins

Hi, I've been looking into getting my own place as I've been lucky enough to save a deposit of £15000 over the years, however, I am currently on Universal Credit. I've been told I can borrow up to £100k on universal credit, but I don't know how it would work as I do get housing element in my Universal credit. Does anybody have any experience of buying a house whilst currently on UC and housing benefits?

housebuyer143

Cintakins said:

Hi, I've been looking into getting my own place as I've been lucky enough to save a deposit of £15000 over the years, however, I am currently on Universal Credit. I've been told I can borrow up to £100k on universal credit, but I don't know how it would work as I do get housing element in my Universal credit. Does anybody have any experience of buying a house whilst currently on UC and housing benefits?

Have you spoken to a broker who has found a lender to lend you £100k? You don't get housing element on a mortgaged property.

theartfullodger

Who told you you get a £100k mortgage on UC?  Do they work for a mortgage lender or broker?  (I'm rather surprised)

Are you employed PAYE (yes many in work get UC) or are you unemployed?

Single or with partner & kids?

Yellowsub2000

All lending institutions are tightening its getting very hard to get any credit and a hell of a lot more expensive as everyone expects interest rates to keep going up as inflation is raging

theartfullodger

Yellowsub2000 said:

All lending institutions are tightening its getting very hard to get any credit and a hell of a lot more expensive as everyone expects interest rates to keep going up as inflation is raging

Indeed.  Under Thatcher's iron handbag (not a fan) bank of England base rate hit 17% November 1979. 


I had a for then large mortgage ..it was painful but was lucky as my building society only demanded 15%....=

Cintakins

housebuyer143 said:

Cintakins said:

Hi, I've been looking into getting my own place as I've been lucky enough to save a deposit of £15000 over the years, however, I am currently on Universal Credit. I've been told I can borrow up to £100k on universal credit, but I don't know how it would work as I do get housing element in my Universal credit. Does anybody have any experience of buying a house whilst currently on UC and housing benefits?

Have you spoken to a broker who has found a lender to lend you £100k? You don't get housing element on a mortgaged property.

I've spoken to somebody on MoneyBox

Cintakins

theartfullodger said:

Who told you you get a £100k mortgage on UC?  Do they work for a mortgage lender or broker?  (I'm rather surprised)

Are you employed PAYE (yes many in work get UC) or are you unemployed?

Single or with partner & kids?

Hi, I'm employed, doing 20+ hours a week and on Universal Credit. I've 2 kids and single

Cintakins

Yellowsub2000 said:

All lending institutions are tightening its getting very hard to get any credit and a hell of a lot more expensive as everyone expects interest rates to keep going up as inflation is raging

theartfullodger said:

Yellowsub2000 said:

All lending institutions are tightening its getting very hard to get any credit and a hell of a lot more expensive as everyone expects interest rates to keep going up as inflation is raging

Indeed.  Under Thatcher's iron handbag (not a fan) bank of England base rate hit 17% November 1979. 


I had a for then large mortgage ..it was painful but was lucky as my building society only demanded 15%....=

So, do you think I should wait?
The reason I'm feeling impatient is because my children are too old to be sharing a bedroom and Feel the pressure to move out of this flat soon, but if buying is a bad idea, then I may just continue with renting

housebuyer143

Buying isn't a bad idea, however you will not get the housing element of UC. 
If you can afford the mortgage and the repair costs then you should do it if that's what you want to do 

[Deleted User]

theartfullodger said:

Yellowsub2000 said:

All lending institutions are tightening its getting very hard to get any credit and a hell of a lot more expensive as everyone expects interest rates to keep going up as inflation is raging

Indeed.  Under Thatcher's iron handbag (not a fan) bank of England base rate hit 17% November 1979. 


I had a for then large mortgage ..it was painful but was lucky as my building society only demanded 15%....=

Yeah yeah. Houses were a fraction of the cost back then, relative to incomes. Things are far, far worse now.

Murphybear

[Deleted User] said:

theartfullodger said:

Yellowsub2000 said:

All lending institutions are tightening its getting very hard to get any credit and a hell of a lot more expensive as everyone expects interest rates to keep going up as inflation is raging

Indeed.  Under Thatcher's iron handbag (not a fan) bank of England base rate hit 17% November 1979. 


I had a for then large mortgage ..it was painful but was lucky as my building society only demanded 15%....=

Yeah yeah. Houses were a fraction of the cost back then, relative to incomes. Things are far, far worse now.

I do agree with you but I lived in London at the time with my first husband.  We both had laboratory jobs in the NHS but properties were like hens teeth in London and we couldn’t find a small flat that up to 50 people weren’t chasing.  As we worked in SW London and not in the centre commuting from a distance would have been difficult.  Plus even with 2 salaries we couldn’t save much with the high cost of renting even back then.  Sadly qualified laboratory staff were not paid a fortune back then.