hOUSING BENEFIT BEFORE MORTGAGE QUESTION

eeyore29

We are thinking about buying a shared ownership property in the near future.
We are currently renting a house for which we receive a little housing benefit per month. Where do we stand in reference to getting a mortgage?What i mean to ask is do you need to be off the housing benefit for a certein period of time before applying for a mortgage??

chambta

eeyore29 wrote: »

We are thinking about buying a shared ownership property in the near future.
We are currently renting a house for which we receive a little housing benefit per month. Where do we stand in reference to getting a mortgage?What i mean to ask is do you need to be off the housing benefit for a certein period of time before applying for a mortgage??

You would only get housing benefit because you are on a low income. As such the fact you receive it indicates you would unlikely to be approved for a mortgage. Is your income due to increase?

eeyore29

We dont receive a lot to be honest i wouldnt say that we were low income (dh wages £27000 per year)

chambta

eeyore29 wrote: »

We dont receive a lot to be honest i wouldnt say that we were low income (dh wages £27000 per year)

If you have an income of £27000 I cannot see how you can be correctly receiving housing benefit under 'normal' circumstances.

dmg24

You should also be aware that some HA's will not offer you a SO property if you have been recently receiving HB.

eeyore29

Well it is correct,have provide all wage slips to housing benefit dept. We live in a 4 bed house £825 per month, and have 4 kids

poppy10_2

eeyore29 wrote: »

Well it is correct,have provide all wage slips to housing benefit dept. We live in a 4 bed house £825 per month, and have 4 kids

Assuming a 4 bed house costs £200,000, you'd be paying £1300/month on a 6% mortgage. And no taxpayer handouts to help you out.

You're in a good situation currently, hold on to it while you can.

krisskross

Would the total costs of the combined mortgage and rent element be higher than the current rent? If so and you are getting HB now then you couldn't afford it.

Also remember that usually even if a property is shared ownership it is the buyer who is reponsible for all repairs etc.

eeyore29

Thanks for all the advice,
Have decided to try and move to a cheaper house( this was the only one avaliable at the time we needed somewhere) , and then come off the housing benefit.
Just been in contact with the shared ownership company and they have said us being on housing benefit doesnt not affect us applying for a property.

My main question was thou how long do you have to be off the hb before you can apply for a mortgage? How many wage slips and bank statements do the mortgage companies ask for??

mitchaa

HB with a £27k income??

Seems strange to me

I know of someone that earns £21k and doesn't get a penny towards housing, council tax etc.

Benefits are for low income families, if your hubby is on higher than average wage (£25k) then i cannot see how you manage to get HB?

What about your income, do you not work at all or receive any non working benefits?

Obviously dont know the whole story though.

Based on 4 x his salary, you'll probably get a max mortgage of £110k. The answer to your question, is normally 3 months worth of bank statements + reference from your hubbys employer confirming his salary.

flipcat

Dont know how it works but maybe because she has 4 children then shes entitled to more hb and maybe the person you know mitchaa doesnt have 4 children,maybe eeyore29,s rent is more than the person you know,we cant assume when we dont know the circumstances.My advice though is dont rock the boat and if it works for you now stay with it.