to think that that state should pay people's mortgage payments if their circumstances change and they lose their income?

(111 Posts)
FlouncingMintyy Fri 22-Feb-13 20:50:57

Am I right in thinking that this doesn't happen at the moment and that housing benefit only covers rent?

gaelicsheep Fri 22-Feb-13 21:19:15

I think they should pay whatever is sufficient to prevent repossession. If that's the interest, so be it. If more is required they should pay more. It is in nobody's interests to have more homeless families, especially if all they need is some breathing space for a few months until they manage to start earning again.

Talkinpeace Fri 22-Feb-13 21:21:19

you know all those dodgy PPI policies that the banks sold on the basis that they would never cough up ....

back in 1987, DH and I had one. He lost his job and while we fought through the courts, the policy paid the mortgage (cap + int) in full for seven months.
Oddly enough the rules changed the week after our claim ceased!!

MuddlingMackem Fri 22-Feb-13 21:21:40

True Flouncy, even with HB towards mortgage it would still be a huge struggle and a major incentive to get a new job asap. Threfore, realistically, it would just remove the immediate risk of repossession, but it would allow the person to concentrate and put all of their efforts into getting a new job rather than stressing about the possibility of losing their home!

nancy75 Fri 22-Feb-13 21:22:08

I think housing benefit should be paid if the person rents or has a mortgage, for example in my area the cap is £800 for a 2 bed, so if you lose your job you should get up to the £800 if you are renting or an owner occupier. If the £800 doesn't cover the mortgage the owner would have to find the rest, as with rented accommodation.

Mimishimi Fri 22-Feb-13 21:22:38

YABU, get mortgage insurance.

sooperdooper Fri 22-Feb-13 21:22:40

Flouncingminty, I'm not sure I understand you, why would people with mortgages be more inclined to find a job paying more than benefits than anyone else? Surely everyone would be better off in that situation if it's available

sooperdooper Fri 22-Feb-13 21:23:51

As I said before, why should someone paying a mortgage pay insurance when someone paying rent doesn't have to?

NotDavidTennant Fri 22-Feb-13 21:28:19

"I don't think the government should pay off people's mortgages by any means, but I do think that people should get more help so they don't lose their homes, like people who rent do"

People who rent don't just automatically get to keep their homes though. God forbid we should end up in this situation, but I've checked and we wouldn't get much more than half our current rent in housing benefit.

So this idea that renters will just get everything paid for them and won't be forced out of their home is a bit inaccurate.

CloudsAndTrees Fri 22-Feb-13 21:35:39

Renters don't get everything paid for them all the time, but in many cases HB covers full rent. There is no good reason why people in need who have a mortgage shouldn't be paid the same amount of LHA they would get if they were renting. It takes into account income, and the number of people needing housing.

As things are changing, people won't get money to pay for rooms they don't need, and I think it would be fair enough for that to apply to mortage owning applicants too.

I agree that people paying a mortgage shouldn't have to pay insurance when renters don't have to.

There is too much division in the way benefits are paid at the moment, and it's very unfair.

ReallyTired Fri 22-Feb-13 21:48:48

I think that helping home owners in the short term makes financial sense. It is very expensive to the state if a family gets repocessed and needs to be re housed or put up in B and B. However there needs to be a cap on what is paid and it needs to be for a limited time.

I like the idea of a loan. Prehaps paying off the mortage of an unemployed person is a relatively cheap way of increasing council housing stock if the person does not get a job within two years.

Prehaps there could be the risk of being forced to move into a council property in a cheaper area or a smaller property if you have extra rooms after a couple of years. Otherwise people would end up taking the piss of having Jo taxpayer paying for their lovely four bed detached house when they have one child.

Talkinpeace Fri 22-Feb-13 21:51:24

in the USA, mortgage interest is a tax deductible expense, no matter how many houses you own, how rich you are or how stupid the mortgage ratio is

the uk system is a beacon of sanity by comparison

stargirl1701 Fri 22-Feb-13 21:57:23

I think it should return to being based on NI contributions. A worker who has paid full NI for 30 years should be entitled to our full support if they lose their job. Someone who has no record of NI contributions should receive far less support than worker A.

I would exempt disability benefits from this though.

<prepares to be flamed>

Talkinpeace Fri 22-Feb-13 22:00:39

I think it should return to being based on NI contributions
it never was ....
MIRAS had nothing to do with NI - DH and I got it straight out of University
and housing benefit used to be given to university students during the short holidays

not flamed - just talking bilge

stargirl1701 Fri 22-Feb-13 22:02:11

Ah well. It should be based on contributions then!

I thought that was how the welfare state was set up by Bevin in the late 1940s.

Talkinpeace Fri 22-Feb-13 22:03:21

so nobody under 50 gets any help?

stargirl1701 Fri 22-Feb-13 22:04:58

You get help on a sliding scale. A person with 5 years contributions gets less help than a person with 30.

Talkinpeace Fri 22-Feb-13 22:07:10

so a person who just bought their house is stuffed, but a person who bought theirs 20 years before and has savings gets help ....

stargirl1701 Fri 22-Feb-13 22:13:30

No, a person, say 25 who just bought a house (obviously not now grin) would get their mortgage interest paid but a person, say 60 who has a full contributions record, would get capital & interest help.

It would reflect the years of paying into a system like National Insurance.

Tbh, it's all pie in the bloody sky. The country can't afford the welfare bill we've got now!

Talkinpeace Fri 22-Feb-13 22:20:39

what about housewives who never pay in - should they get nothing back ?

WhitesandsofLuskentyre Fri 22-Feb-13 22:27:23

We were in this situation last year (DP out of work for 6 months with cancer). They paid 3 months' interest (we had to cope for the first three) so I am now up to my eyeballs in debt because the shortfall had to go on a credit card. Well, that, and having to make up the shortfall between the £500 a week DP WAS earning (and then lost, being self-employed), and the £71 per week ESA he was awarded. So I've taken out insurance for me, now! Wish to god I knew how people managed on benefits...

thekidsrule Fri 22-Feb-13 23:11:52

yanbu

i have been in the position of the DWP paying my interest only on the morgage,i had to top up and obviously you incur more expense in a morgaged property rather than renting

many in this position really struggle

makes no sense the current rules

stargirl1701 Fri 22-Feb-13 23:29:13

Anyone claiming Child Benefit gets credits. A 'housewife' without children isn't going to be entitled to anything but, I would imagine, her husband must be a high earner and it would be him who pays the mortgage.

midastouch Sat 23-Feb-13 00:11:40

I believe they pay the interest? I think its right to stay that way, otherwise it doesnt give much incentive to find another job does it? The govermnet would basically be buying you a house?!

midastouch Sat 23-Feb-13 00:14:10

Renting costs more a month than a morgage, so you should pay insurance, surely its your decision and a chance you are willing to take like buying anything with credit? That you cannot guarantee your income for the next 40 years

GregBishopsBottomBitch Sat 23-Feb-13 00:14:53

I know a woman who has 500 pound of her mortgage paid, she has to pay the other 600.

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