UC+mortgage: how are you paying the mortgage?

JohnSmith123

Hi folks.

From my understanding, UC won't pay for mortgage principle payments, only a seemingly unlimited ground-rent and service charges. A loan limited to £200,000 could be applied for to pay off the interest. 

So, for people who's entire income comes from benefits, how are they paying the principle payments? is it from their PIP, LCWRA and standard allowance elements?

I recently received a lump sum from my LCWRA tribunal ...and also a Section 21 notice from my landlord so I am wondering if I can finally break out of the rental trap.

I assume that if I was to do shared ownership and pay rent on the portion I don't own then I guess that would be aid in a similar way as would happen with me renting now. I am not sure about the mortgage payments element however. 

trb10

If you have a shared ownership property then yes you are entitled to apply for help with the rent side of it.  Whether you will actually get any help depends on your income.  The only help for mortgages is help with the interest on the mortgage.  It is however a loan that attracts interest of 8% per annum and is put as a charge against your property until it is cleared or your property is sold and the DWP's interest in the property paid off.

JohnSmith123

trb10 said:

If you have a shared ownership property then yes you are entitled to apply for help with the rent side of it.  Whether you will actually get any help depends on your income.  The only help for mortgages is help with the interest on the mortgage.  It is however a loan that attracts interest of 8% per annum and is put as a charge against your property until it is cleared or your property is sold and the DWP's interest in the property paid off.

I wonder how people who depend solely on benefits can afford to pay for a mortgage though. Does this mean that people who have mortgage payments (that are within the LHA) who end up on benefits end up having to sell their property and start renting just to be able to get help with their housing expenses?

For example, currently I am renting so I get a housing amount up to the LHA to pay for the rent. If I get a mortgage, I will no longer get that money and I assume (unless corrected) that I would have to pay the mortgage out of my UC standard allowance and my LCWRA element and my PIP, thus I will have a much reduced monthly income to spend on living expenses and housing (in the form of the mortgage) than before when I had the same living expenses and receiving money for housing (in the form of rent). 

Is this correct?

trb10

Assuming you qualified for a mortgage then yes, if you didn't apply for the support with mortgage interest scheme, you would be paying the monthly payment from your benefit income

JohnSmith123

Ok, thank you for answering

trb10 said:

Assuming you qualified for a mortgage then yes, if you didn't apply for the support with mortgage interest scheme, you would be paying the monthly payment from your benefit income

poppy123456

JohnSmith123 said:

trb10 said:

If you have a shared ownership property then yes you are entitled to apply for help with the rent side of it.  Whether you will actually get any help depends on your income.  The only help for mortgages is help with the interest on the mortgage.  It is however a loan that attracts interest of 8% per annum and is put as a charge against your property until it is cleared or your property is sold and the DWP's interest in the property paid off.

Does this mean that people who have mortgage payments (that are within the LHA)

Mortgage has nothing to do with LHA. This is for those claiming help with the rent and are privately renting their home.

JohnSmith123

poppy123456 said:

JohnSmith123 said:

trb10 said:

If you have a shared ownership property then yes you are entitled to apply for help with the rent side of it.  Whether you will actually get any help depends on your income.  The only help for mortgages is help with the interest on the mortgage.  It is however a loan that attracts interest of 8% per annum and is put as a charge against your property until it is cleared or your property is sold and the DWP's interest in the property paid off.

Does this mean that people who have mortgage payments (that are within the LHA)

Mortgage has nothing to do with LHA. This is for those claiming help with the rent and are privately renting their home.

Hi Poppy, I thought we had mutually acknowledged that you were not going to be contributing to my threads? Please make a note of my username. I have tried blocking you and restarting my thread but it doesn't seem to be much use. I'm sure your paternalistic approach would be appreciated elsewhere as personally I am finding it antagonistic. 

poppy123456

Here we go again. I'm getting quite fed up of some new members and their very rude attitude.

Putting someone on your ignore list doesn't stop that person from commenting on the threads you post on. Blocking a member means their comments are faded out to you.