Can anyone assist me with a question i have

mawomow623
mawomow623 Online Community Member Posts: 7 Listener
in Housing and independent living
Hi, im on UC and during the past year i have decided to try and buy a property. Any single small property that is freehold. Im tired of paying rent as its costing me too much. Im currently on UC but have read that i cannot save up new 6k otherwise you wont get benefit. Its a very long shot as i have near to nothin right now but starting to save from now wouldnt hurt. But how do i save up as when it totals to a decent deposit in the distant years they might take UC off me. So does anyone know how it works. Thanks.

Comments

  • bg844
    bg844 Online Community Member Posts: 3,927 Championing
    You can have up to £6,000 in savings, this will always be disregarded. After this you can have up to £16,000 although you’ll get a deduction of £4.35 for each £250 over. 

    If you do reach £16,000 your claim will close although you can do a ‘rapid-reclaim’ within 6 months, a Decision Maker will ask what you have spent your money on so you need appropriate evidence which shows you haven’t deprived yourself of capital. It is very difficult to get a mortgage while on benefits but not completely out of the window.
  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    Have you also thought about the cost to any repairs or boiler services? When renting you do not have to pay any of those but having a home of your own you will be responsible.

    Are you currently working?
  • vikingqueen
    vikingqueen Scope Member Posts: 1,851 Championing
         It's a never ending saga with repairs when you own your home, and with mortgage rates unstable at the minute you need to work it all out as to whether you can afford it all. I don't want to put you off in trying but sit down and cost it all 1st. Good luck 
      
  • mawomow623
    mawomow623 Online Community Member Posts: 7 Listener
    edited June 2023
    Hi all many thanks for the replies. Yea it seems as though owning a home has its own costly outgoings but as long as i save something towards a rainy day it should be possible, repairs wise, as long as the boiler,fridge, tv and cooker dont pack up in one go )). But my main concern is that on UC as the user above has stated, 16k is when you no longer get UC and its understandable having that much as savings means you shouldnt really be getting anything until its spent. I am as of now, unemployed. But With my current anxious situations, keeping a job becomes hard. So it look as though saving up for a home isnt something worth thinking about. Im assuming all those let off work but have hard earned savings over 16k go through the same thing if they apply for UC ? Is there any scheme that could possibly come out which would allow someone on UC to save up for a home as renting all these years, i could have just got a mortgage and paid it off now or atleast paid off a share. I havnt checked up on mortgages for the unemployed buts its reassuring to know that it is doable, il have to check up on that too.
  • MW123
    MW123 Scope Member Posts: 1,464 Championing

    Hello mawomow623 

    There are different government programs that try to help people become homeowners, like Help to Buy, Shared Ownership, and Right to Buy. These programs have certain rules you need to meet, like having a certain income or stable job. It's a good idea to look into these options and talk to a mortgage advisor or housing association to see if you could qualify for one of the schemes and what help you might be able to get. 

    Regarding mortgages for the unemployed, securing a mortgage without a stable income can be onerous. Lenders typically assess an applicant's ability to repay the loan, which often involves evaluating their income and employment status. However, some lenders may consider alternative sources of income or circumstances, so it's worth discussing your situation with a mortgage advisor. 

    It might be beneficial to seek support from a career counsellor, who can help you manage your anxiety and explore suitable employment options.  Whatever you decide to do I wish you all the best.

     

  • mawomow623
    mawomow623 Online Community Member Posts: 7 Listener
    MW123 said:

    Hello mawomow623 

    There are different government programs that try to help people become homeowners, like Help to Buy, Shared Ownership, and Right to Buy. These programs have certain rules you need to meet, like having a certain income or stable job. It's a good idea to look into these options and talk to a mortgage advisor or housing association to see if you could qualify for one of the schemes and what help you might be able to get. 

    Regarding mortgages for the unemployed, securing a mortgage without a stable income can be onerous. Lenders typically assess an applicant's ability to repay the loan, which often involves evaluating their income and employment status. However, some lenders may consider alternative sources of income or circumstances, so it's worth discussing your situation with a mortgage advisor. 

    It might be beneficial to seek support from a career counsellor, who can help you manage your anxiety and explore suitable employment options.  Whatever you decide to do I wish you all the best.

     

    Many thanks for the replies. while it is possible to get a mortgage for the unemployed, it is an unruly process as lenders have to make sure they can pay back an amount loaned to them. Without a stable job but a stable income from UC it still becomes near enough non existent, unless i qualify for a few of the above mentioned. I will certainly have a much more thorough look. But ideally a stable income 2 fold over the usual expenses must be met. As if now i will have to disregard the savings idea as if it doesnt seem viable. Thanks.

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