Is it possible to get a mortgage on benefits and has anyone done it

happyfella

I hate where i live simple as that. I have the worst neighbours in the world. I would love to sell our house and move and woud like to know if it is possible while on benefits.

My wife works part time but she is 65 and i am 51 and i receive pip, lcwa (i think it is called).

We could put down £30,000 for a new house from the sale of our house.

I am just wondering if anyone has managed to get a mortage in our position

janer1967

It is very difficult when jyst receiving benefits and also with your age unfortunately 

This question has been asked on here a few times and as yet not seen any that have come back to say they have succeeded 

You might want to look into part ownership schemes not sure how they work tbh 

woodbine

Age is one problem most lenders insist that a mortgage is repaid by the age of 70, but. as @janer1967 rightly says this has been asked a number of times, my only advice would be to find what is known as "a whole of market broker" and have a chat with them, the problem is benefits aren't guaranteed and can end, a £30k deposit depends on how much you would have to pay for a property.

happyfella

What about an alternative way of living. Does anyone do that.

woodbine

That all depends what you mean by alternative? We actually don't live in a bricks and mortar home, but even so what we live in would still cost you anything between 50k and 300k depending on area and other factors.

happyfella

you read a lot about people living in alternative accomodation from boats and caravans

calcotti

woodbine said:

.. benefits aren't guaranteed and can end, ..

As can jobs!

woodbine

calcotti said:

woodbine said:

.. benefits aren't guaranteed and can end, ..

As can jobs!

Very true but you can take out insurance to cover losing your job you can't do that if your income is just benefits

calcotti

woodbine said:

calcotti said:

woodbine said:

.. benefits aren't guaranteed and can end, ..

As can jobs!

Very true but you can take out insurance to cover losing your job you can't do that if your income is just benefits

Good point.

woodbine

OP if you search Google re: mortgages on benefits it returns more than I imagined it would but as usual read the small print carefully.

Stratford

The higher the loan to value rate . The more likely you will be to get accepted for a mortgage. But at least 1 person would need a full time stable income. Benefits are taken into consideration as part of an income. Get advice.
mortgage insurance is very expensive also.

leeCal

Also alternative living say off the grid can be done but is better suited to younger people, I’m thinking Yurts etc. Now a houseboat might be possible but you might be hard pressed to get something bought outright for £30k which was a completed project, ie liveable in. There are also mooring fees etc to think about. Almost doable though. 🤔

Daniel_2021

Hi,
From a UC perspective regarding a mortgage the answer would be no, the reason being that you would benefit twice; the initial mortgage payment and secondly the equity in the house that you would earn.
I found the above in a CPAG book a while back, it might be on their site.
The £30k savings you may get from selling your house can essentially be ignored (as over the maximum £16k limit) as long as it's used to buy a new property within 6 months, obviously your work coach would probably want to see that you've sold your house and are looking for a new house.
After receiving UC for 9 months without any breaks you can claim something to help you pay off the interest off your mortgage (not capital) but this would need repaying and I think incurs interest too.
I hope the above helps, some of it is from memory, hence using roughly and around.
Thanks,
Daniel 

Daniel_2021

Hi @Teddybear12
Thanks so much for noticing! That's lovely of you.
I've been in hospital on and off, I was in again for a week last week. I'm seeing a pain specialist on Tuesday so I hope he can do something, at the moment it's mainly opioid based so lots of sleeping and lots of saying random things allowed.
As and when I can I always come and read the comments and things, so i'm still here.
I hope all is well with you.
Thanks again,
Daniel 

poppy123456

Daniel_2021 said:

After receiving UC for 9 months without any breaks you can claim something to help you pay off the interest off your mortgage

That's not quite correct, It's 9 concecutive months with no earned income. https://www.entitledto.co.uk/help/Support-for-mortgage-interest-Universal-Credit

happyfella

I have been offered help with our mortgage but i am too proud to accept it. the way i see it is, it is my house so why should i take taxpayers money to help me pay for it. It is just my way of thinking. I have turned down help with my mortgage lots of time and have even refused help with my council tax.

But, i do feel trapped. I do not like where we live because of our neighbours. On one side we have neighbours from hell and on the other side we have neighbours from hell and we are caught in the middle. there is never a day when you don't have to listen to one of the neighbours arguing. It does nothing for my mental health.

But the way i see it is, i will only be free from this is when they carry me out of a box. I was offered rental accomodation through OH, but i would need to sell the property first. I have never lived in rental accomodation and would not feel secure in rental accomodation.

Alex_Alumni

Hello @happyfella how have things been since you posted earlier this month?

It's quite difficult for us to advise you on such a personal decision, if what you say about your pride is still the case. Sometimes though, we just need to vent, which you are welcome to do of course! 

I would perhaps take some time to examine whether a compromise can be made between pride and quality of life, or not feeling trapped if you like. Weigh each of them up, think about the positives, and ask yourself, which one ultimately comes out top for your overall wellbeing?

Littleapril55

Hello my first comment and post. I was looking into the above comment about owing your own home. I rent a housing association property I have a full tenancy. For many years I have had issues with the housing association not repairing things which drag on for yrs or having issues with the neighbours on top dosent help to. I am currently on esa main section and housing benefits I have no other family living with me 40+ I have been on this for many years after having cancer which I am in remission for the last 11 yrs I also have another long term health issue on top which limits me from working. I getting sick of the endless issues with the housing and the neighbours I would like to feel safe and happy with my life. I am debt free. Can I own my own home or not any comments would be nice

janer1967

There is no issue you owning your own home the issue is financing it 

You would struggle to get a mortgage if only on benefits tho it isn't impossible 

But other factors you will be responsible for your own maintenance and cost, insurance etc 

There are still no guarantees you will get good neighbours 

Jo_2022

Hello @happyfella! That sounds like a tricky situation indeed. I do not have any professional knowledge in this area. I would suggest you consult with a professional and seek  professional advise.