Mortgage advice

[Sasquatch75]

Just wondering if it's possible to get a mortgage while on benefits? Me and ex have a mortgage but he's now living elsewhere... And I'd love to take on the house on my own but is it possible while I don't work (youngest child is 2)?

[morethanpotatoprints]

I know that tax credits are considered as proof of income, or at least they were.
However, not sure if UC is, so best to get in now whilst you can.

[purpleroses]

Not normally. What would you pay the mortgage with? Housing benefit only covers rent.
The only state support for mortgages is much more restricted and aimed at people who already own homes then lose their job. Even then it only pays the interest.

If your DC is 2 you could start looking for work and a nursary place then think about buying.

[chickensaladagain]

As a loan parent I wouldn't ever advise anyone to take on a mortgage regardless of circumstances

I did, was very proud if the fact I had raised enough to buy the ex out and was meeting the mortgage payments

And then I got made redundant!

I now face the very real possibility of loosing mine and my children's home

If I was renting hb would keep a roof over our heads

[Sasquatch75]

I'm paying the mortgage right now out of tax credits, income support, child benefits and child maintenance and managing fine. I was just wondering if the mortgage company might think it was too risky as I don't have a job? Maybe I should leave it as it is...

Morethanpotatoprints - what's UC?

[roughtyping]

Will you not need to come off IS when your daughter is older?

[roughtyping]

Don't know why I have daughter in my head!

[Sasquatch75]

Lol. Yes, but my plan is to start working in a year's time when my youngest is at the school nursery and my mum has retired so will be able to help out with child care.

[AnitaManeater]

I'm not a lone parent as such, but I do have a mortgage based on just my own finances and with my 3 children as my sole responsibility. I'm lucky in the respect I had an 80% deposit from an inheritance. Nationwide offered me a 50k mortgage at 2.79% fixed for 3 years. which was based on p/t earnings of 10k p/a and my tax credits. This was 3 months ago. I was pleasantly surprised as it was a flat no from HSBC.

[roughtyping]

But what I meant was, they won't see IS as a long term income if they know you have to come off it in a certain amount of time IYSWIM?

[TwoStepsBeyond]

If your ex is agreeable I would keep it as a joint thing for the time being for your own stability. While his name is on there too he is responsible for making sure it is paid and he will have a vested interest (apart from keeping a roof over his DCs' heads of course!) in making sure you are able to keep paying it.

I still have a joint mortgage with ex and rely on TCs, CB etc as well as maintenance from him and my P/T income to live on. I haven't transferred it into my name for the same reasons, my actual income from work isn't enough to get a credit card let alone a mortgage!

Over the next couple of years all the TCs/IS etc are going to change to a single type of benefit payment, Universal Credit (UC) Although they say that nobody will be worse off under the new rules, this is the government, so who knows what will happen. You certainly can't rely on things staying the same for you over the next 2-3 years, so anything which puts you in a vulnerable position is best avoided.

[mammadiggingdeep]

I'm in same boat as you op (although am working but not enough salary to buy him out)....I'm looking into getting family member to sign a guarantor mortgage. Might be worth a look?

[Sasquatch75]

I guess it would make more sense to just keep him on the mortgage then. But in the meantime, I'm the one paying the mortgage, so what happens when I eventually buy him out?

Atm he'd only get about £10k as (luckily) when we got together I had a declaration of trust drawn up as I put a big deposit down on it from the sale of my old house. In a few years time, the mortgage will be less, and his half will be more. Or do the calculations the solicitors use take that into account?

[rainflux]

I think it will be a risky thing to do. Wait until you have your own job and buy the property out. Check out yep-market too, you might be able to find details there.