Buying home on benefits — Scope | Disability forum
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Buying home on benefits

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kidsareus
kidsareus Community member Posts: 28 Listener
edited June 2021 in Housing and independent living
Can someone buy there council house if they are on benefits if someone has been a tenant for 30yrs 
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  • calcotti
    calcotti Community member Posts: 10,010 Disability Gamechanger
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    Your problem will be getting a mortgage if you need one as lenders are unlikely to lend to someone who only has benefits as their income.
    Information I post is for England unless otherwise stated. Rules may be different in other parts of UK.
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  • Cher_Alumni
    Cher_Alumni Scope alumni Posts: 5,741 Disability Gamechanger
    edited June 2021
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    Hello @kidsareus

    Scope have more information on getting a mortgage when your income is benefit-based.  As @calcotti mentioned, affordability is crucial here and it's worth considering:
    The chances of getting a mortgage when your income consists solely of benefits are very low. The maximum loan to value available to people on benefits is usually 75% of the purchase price or value of the property.

    If you have a partner who is working or you are also working, lenders will consider your benefits as part of the household income. Lenders may consider Employment and Support Allowance (ESA) Support Group awards of at least 3 years. This varies from lender to lender.
    Plus, are plans in place to finance the extra costs such as legal fees?

    If you visit the Scope link above, it includes links to where to obtain independent financial advice and I would definitely advise doing this as a first step towards looking at buying a home.

    Just to let you know, I've moved your thread to our Housing and independent living category to make it easier for others to find.  Please ask away with any other questions and good luck :)
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  • kidsareus
    kidsareus Community member Posts: 28 Listener
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    Thank you for your advice this really helps as it’s for my sister she gets ESA PIP SDP support group and high rate she has been a council tenant and would get the maximum discount with right to buy for being a tenant for so long I don’t have the answers for her so I really appreciate your feedback ?
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  • woodbine
    woodbine Community member Posts: 11,629 Disability Gamechanger
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    This is a question that pops up from time to time, and the answer i'm afraid is that getting a mortgage when on benefits isn't easy. I assume that as she has been a tenant for 30 years she is probably well into her 50's? an age when most people struggle to get a mortgage.
    Has she also considered that she will be liable for paying for repairs and the upkeep of the property if she owned it? and that whilst she probably gets help with her rent that won't be the same with a mortgage.
    Getting back to the mortgage issue, I can only suggest that she finds what is known as a "whole of market broker".
    2024 The year of the general election...the time for change is coming 💡

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