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Benefits and mortgages

Good news for some! 🙂
see tomorrows newspaper headlines at sky news
https://news.sky.com/story/saturdays-national-newspaper-front-pages-12427754
“This is my simple religion. No need for temples. No need for complicated philosophy. Your own mind, your own heart is the temple. Your philosophy is simple kindness.”
― Dalai Lama XIV
Comments
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I didn't realise they couldn't, I thought the problem was mortgage companies not lending to them and don't know how he can change that
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Biblioklept said:I didn't realise they couldn't, I thought the problem was mortgage companies not lending to them and don't know how he can change thatReports said that the speech would outline measures to allow people to use benefits to help in securing a mortgage. The Times said he will argue that the £30bn in housing benefit that currently goes towards rent would be better spent in helping people become first-time buyers. However it remained unclear how this would help people on such low incomes with lenders increasingly concerned about affordability criteria amid the cost-of-living crisis.
If true, this sounds like a typical Johnson sketch idea without much thought to the practical implications (nor can I imagine that any such move would have any support in the Treasury). It plays to the Tory obsession that home owning is fundamentally better than renting without acknowledging that the many of the problems people have rent could be removed through a different legislative framework for renters.
(Providing extra support to people with mortgages who fall on short times on a temporary basis would make sense.)
Alongside this the report also says
Another anticipated proposal is the extension of the right-to-buy discount scheme for social tenants to those in housing association properties, an idea first raised in the 2015 Conservative manifesto and condemned as likely to make the housing crisis worse.Another Tory obsession which has made the housing situation worse. A policy too which has contributed to the housing benefit bill. Houses that were built by the government and let at low rents are sold off at a knockdown price to buyers who can, after time, end up letting them out again at a much higher rent so the housing benefit bill for whoever occupies the home at tha time is much higher than it would have been if the property had remained social property.
Information I post is for England unless otherwise stated. Rules may be different in other parts of UK. -
I would like to own my own home one day and even though I work I will never be able to because the cost is just too high. Renting costs are ridiculous though and something needs to be done about the housing market in general.
Even in housing association houses near me the rent is over £1200 per month. You can imagine what private would be!!!! -
Oh! And I naively thought it was good news. ☹️
“This is my simple religion. No need for temples. No need for complicated philosophy. Your own mind, your own heart is the temple. Your philosophy is simple kindness.”
― Dalai Lama XIV -
This is laughable how on earth he thinks this will "re-launch" his premiership is utter nonsense, it's not impossible to secure a mortgage on benefits just very very difficult.Seasons greetings to one and all 🎄🎅🏻🌲
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woodbine said:This is laughable how on earth he thinks this will "re-launch" his premiership is utter nonsense, it's not impossible to secure a mortgage on benefits just very very difficult.
It would be much simpler if the Housing Benefit payments are used to pay the claimant's mortgage?
At the moment Housing Benefit is not considered as income when applying for a mortgage. I have no idea what the levels are for housing benefit for a 3 bed family home but do believe that there will be little difference with the benefit and the mortgage payments. As for saving for a deposit of 5% - the government could take a 5% interest in the home repayable when the property is sold. In other words there would be no need to save for a deposit.
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HB and LHA are both quite different than SMI which of course is now a loan not a benefit, I'm not quite sure why anyone would expect HB to be classed as income when applying for a mortgage, because HB would stop if/when a mortgage was granted.Seasons greetings to one and all 🎄🎅🏻🌲
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I have to take a slight issue with @racyguy saying, ' But the crux of this is that people 'waste' a great deal of money when receiving Housing Benefit - they are simply lining the pockets of private landlords so that THEY can pay their own mortgage.'Having until last year been a landlord of a private property, we're not all bad guys. We had a lovely tenant for 8 years, in which time we never increased her rent, sorted out any problem she had very quickly, & no, the rent wasn't paying off our small mortgage, which had already been paid off in our late 30's.Without private landlords, then surely the housing market would be even less?
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racyguy said:woodbine said:This is laughable how on earth he thinks this will "re-launch" his premiership is utter nonsense, it's not impossible to secure a mortgage on benefits just very very difficult.If you are one of the lucky ones then you’ll likely need a homeowner guarantor.I would appreciate it if members wouldn't tag me please. I have all notifcations turned off and wouldn't want a member thinking i'm being rude by not replying.If i see a question that i know the answer to i will try my best to help.
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Where I live most housing is rented private becausec of lack of counciol property's I would tsther pay private rent because I can choose where I want to live
I live in a 3 bed property two liveing rooms kitchen bath room newly decorated before I moved in brand new carpets and Cooker and bath and shower lovely house with a sea view
Only problem with private renting is the deposit I had to pay what they call the first and last month plus one month's rent in advance my rent is 740.00 so I had to pay a large deposit
It was the house I wanted the inside of the house is done to a high standard and I have the house for as long as I want to live in it
People say to me that is alot but on my street 3 bed counciol houses are only 50.00 cheaper on the rent and with counciol housing uou have to buy your own carpets /flooring and do your own decorating so it's swings and roundabouts if you own your own house yes mortgages are cheaper than what some people pay rent but then if you had to move for some reason it's not so easy plus you have to pay for repairs and things like that .
I used to own my own house but I would rather rent personally
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woodbine said:HB and LHA are both quite different than SMI which of course is now a loan not a benefit, I'm not quite sure why anyone would expect HB to be classed as income when applying for a mortgage, because HB would stop if/when a mortgage was granted.
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Username_removed said:A good home over your head is never a waste and it’s easy to forget that renting has many advantages. Given the average age people pay off a mortgage is 57 and life expectancy is falling many people get barely 15 years mortgage free and that just as their income freezes.As mentioned in another recent thread on right to buy/affordable homes buying homes is not the issue. Having sufficient income and capital to maintain them is the issue.
I've never paid off a mortgage simply because we have moved 6 times since we bought our first home. The previous 5 properties were sold for considerable more than what we paid. The 6th home was to downsize to a small three bed semi new build. The purchase of that home was by way of our savings which rolled up out of the profits made on the previous 5. We were mortgage free in 1998 aged 49. -
racyguy said:woodbine said:HB and LHA are both quite different than SMI which of course is now a loan not a benefit, I'm not quite sure why anyone would expect HB to be classed as income when applying for a mortgage, because HB would stop if/when a mortgage was granted.Seasons greetings to one and all 🎄🎅🏻🌲
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woodbine said:racyguy said:woodbine said:HB and LHA are both quite different than SMI which of course is now a loan not a benefit, I'm not quite sure why anyone would expect HB to be classed as income when applying for a mortgage, because HB would stop if/when a mortgage was granted.Information I post is for England unless otherwise stated. Rules may be different in other parts of UK.
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woodbine said:racyguy said:woodbine said:HB and LHA are both quite different than SMI which of course is now a loan not a benefit, I'm not quite sure why anyone would expect HB to be classed as income when applying for a mortgage, because HB would stop if/when a mortgage was granted.
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I think race guy is speculating about what could happen if the rules are changed in line with Boris’s latest random thinking aloud (to the extent that thought comes into it).
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racyguy said:woodbine said:racyguy said:woodbine said:HB and LHA are both quite different than SMI which of course is now a loan not a benefit, I'm not quite sure why anyone would expect HB to be classed as income when applying for a mortgage, because HB would stop if/when a mortgage was granted.
Although I appreciate that recent news from the govt. would cause people to assume this.Seasons greetings to one and all 🎄🎅🏻🌲 -
woodbine said:racyguy said:woodbine said:racyguy said:woodbine said:HB and LHA are both quite different than SMI which of course is now a loan not a benefit, I'm not quite sure why anyone would expect HB to be classed as income when applying for a mortgage, because HB would stop if/when a mortgage was granted.
Although I appreciate that recent news from the govt. would cause people to assume this.Information I post is for England unless otherwise stated. Rules may be different in other parts of UK. -
calcotti said:woodbine said:racyguy said:woodbine said:racyguy said:woodbine said:HB and LHA are both quite different than SMI which of course is now a loan not a benefit, I'm not quite sure why anyone would expect HB to be classed as income when applying for a mortgage, because HB would stop if/when a mortgage was granted.
Although I appreciate that recent news from the govt. would cause people to assume this.Seasons greetings to one and all 🎄🎅🏻🌲
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