Coming off UC to buy a house

Bumblebee528_

Hi, so I’ve been in receipt of UC for about 4 years now as I am a single mum to a little girl. I am now back at work full time and earning a full time wage, I still receive some UC but not as much as I used to. I have met a lovely man and he has asked me if I’d like to buy a house with him- he also works full time. Me and my daughter currently live in a council flat and I’ve always dreamed of being able to give her a garden and a nice house. I would love to buy a house with him. He doesn’t live with us and he doesn’t help me to pay my bills, rates and rent. I pay all my bills alone, so my question is how do I go into getting a mortgage with him whilst in receipt of UC. I have no issue with closing my claim when we have a house as I don’t wish to receive anymore benefits due to me and him both working full time, I just don’t know how I explain to UC, I’m buying a house with my boyfriend and I don’t want to receive help anymore. 

Is it really that simple? Do you tell UC once the house is bought or do you keep them updated throughout the process? 

I’m just a bit stuck on how to go about things. I only have 2.5k in savings so his money will be mostly used for a deposit. I just would like some advice if I am allowed to go into a mortgage and close my claim? 

Thank you.

teaselMay

Unless your savings (not including the money that you've received during the current assessment period) go over 6K you don't need to tell Universal Credit anything until you move in with your partner. Then when you do move in with him you'd be expected to claim as a single unit, i.e. his income and yours. And so you could then just close the claim rather than make a joint claim that sounds unlikely to be entitled to anything.

If you just want to close your claim now you can do that too, but there's no need to.

Bumblebee528_

teaselMay said:

Unless your savings (not including the money that you've received during the current assessment period) go over 6K you don't need to tell Universal Credit anything until you move in with your partner. Then when you do move in with him you'd be expected to claim as a single unit, i.e. his income and yours. And so you could then just close the claim rather than make a joint claim that sounds unlikely to be entitled to anything.

If you just want to close your claim now you can do that too, but there's no need to.

Thank you for your message. So can I buy a house with him and be on a mortgage together and just tell them once the sale has gone through and close my claim. No my savings has never been over 6k and we live completely separate. So I can apply for the mortgage and just let them know when we move into the house that my circumstances have changed and I no longer wish to claim as I live with a partner. Thank you for your response! 

teaselMay

Yep, if you're living as two separate households until you move to a new house then nothing about your claim has changed until you buy the house. Owning a house and moving in together are things that you'd need to tell UC about, but they will both coincide with you and him become one household when you'd need to change the claim to a joint claim with him anyway.

I'm in the midst of buying a house and UC only know because that I was about to move came up in a recent UC review, but it doesn't change anything about my claim until I actually own the house, well part of it in my case, and move.

KxMx

The value of the home you live in isn't counted in the calculation of your capital for UC purposes. 

I'd recommend informing them once you've moved in, him starting a claim and then linking them together.

Because you have a work allowance and a child there may still be some entitlement from your joint circumstances.

Perhaps try a benefits calculator to estimate?

https://www.gov.uk/benefits-calculators

Muttleythefrog

As I see it keep claiming until you move in together in the home you buy (together or singularly). Then you would notify them of the change in circumstances resulting in likely end of payments due to incomes as he'd have to be joined to your claim. Currently you're considered as separate households but once moving in together you will be treated as a single household for assessment of UC. 

In light of the fact you've no concern of losing UC this should all be straightforward - no need to keep UC aware of plans until they've actually been gone through with. Keep them up to date with any changes to circumstances in the meantime as you ordinarily would need to such as if your savings did go over £6k etc. You could close your claim early but obviously we're here to help people get their entitlements and if you're entitled to some UC pending moving in with partner then I would advise continuing to claim such.

Perhaps carry out a benefit check using the likes of EntitledTo once you've moved in together to check if any entitlements may remain given new circumstances.

Good luck!

sammyjammy

I hope I'm not overstepping but you have a secure tenancy and a young child, buying a house with someone puts you in a very vulnerable situation if things don't work out.  Things to think about - how will the house be owned? Joint or tenants in common? Will his deposit be protected?  Will you each pay 50% of all bills?

Bumblebee528_

sammyjammy said:

I hope I'm not overstepping but you have a secure tenancy and a young child, buying a house with someone puts you in a very vulnerable situation if things don't work out.  Things to think about - how will the house be owned? Joint or tenants in common? Will his deposit be protected?  Will you each pay 50% of all bills?

Hi, I understand where you are coming from, I am a person who thinks things through and I wouldn’t rush into anything that would jeopardise anything of my daughters safety/ future. I’ve been seeing him for a long time and he has also recently asked me if I’d like to marry him…(I think we should live together 1st)This is what has sparked the move in together idea. He has a secure job and so do I. He’s been in my daughters life for a while now. So I either move in with him together and become a family or I stay in the flat, I think it’s more than worth a go. We will both be paying our share of the mortgage and it will be his money on the deposit so I’m sure if he wants to have it protected that’s his decision. I think we will work out payments for bills/ rates on a ratio of income as he earns more than what I do a month. I feel more than ready to come off UC. It helped me in a very dark period of my life but now I have a good secure job and I feel okay now to come off and give moving in together a go. Thank you. 

Bumblebee528_

Muttleythefrog said:

As I see it keep claiming until you move in together in the home you buy (together or singularly). Then you would notify them of the change in circumstances resulting in likely end of payments due to incomes as he'd have to be joined to your claim. Currently you're considered as separate households but once moving in together you will be treated as a single household for assessment of UC. 

In light of the fact you've no concern of losing UC this should all be straightforward - no need to keep UC aware of plans until they've actually been gone through with. Keep them up to date with any changes to circumstances in the meantime as you ordinarily would need to such as if your savings did go over £6k etc. You could close your claim early but obviously we're here to help people get their entitlements and if you're entitled to some UC pending moving in with partner then I would advise continuing to claim such.

Perhaps carry out a benefit check using the likes of EntitledTo once you've moved in together to check if any entitlements may remain given new circumstances.

Good luck!

Thank you for your advice! 

Bumblebee528_

KxMx said:

The value of the home you live in isn't counted in the calculation of your capital for UC purposes. 

I'd recommend informing them once you've moved in, him starting a claim and then linking them together.

Because you have a work allowance and a child there may still be some entitlement from your joint circumstances.

Perhaps try a benefits calculator to estimate?

Hi, I will have a look into this. Thank you!