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AIBU?

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Original poster

To think being able to use housing benefits as a mortgage is unfair?

388 replies

blahloney · 09/06/2022 14:58

I’m actually feeling quite annoyed. I currently work full time, don’t receive benefits but cannot afford to buy a house despite my rent being more than a mortgage. How is this fair?

OP posts:
PolkaDotMankini · 09/06/2022 15:20

It makes sense to me that people who own their own home on a mortgage are able to get housing benefit if they need it. Mortgage payments are often cheaper than rents for similar properties and the purpose of the benefit system isn't to punish people by making them lose their home.

JustTheOneSwan · 09/06/2022 15:18

TwinklingFairyLights · 09/06/2022 15:16

@JustTheOneSwan

Maybe I've misunderstood but if people claiming housing benefit and the housing element of UC will be able to use that income to pay a mortgage on a new purchase? Sure,y that means they will continue to receive the housing benefit or housing element of UC once they've bought? Seems unfair not to extend that to owners who lose their job after having owned for several years.

You haven't misunderstood.
Boris is talking crap.
It's an old Dave Cameron policy that didn't work then.
it won't happen.

luckylavender · 09/06/2022 15:18

AnotherEmma · 09/06/2022 15:03

Eh?
you can't use housing benefit to pay a mortgage. It's for people who are renting.
of course private landlords use the rental income to pay their buy to let mortgages, so if a private tenant is claiming HB, it's indirectly paying their landlord's mortgage.
but that's not what you mean is it?

It's not what the PM said though. It is for people on benefits. Won't work of course.

Blossomtoes · 09/06/2022 15:18

Apparently they’re going to get round the deposit issue by using the discount as the deposit. So 40% discount, the mortgage would be 60% LTV.

TwinklingFairyLights · 09/06/2022 15:18

the80sweregreat · 09/06/2022 15:16

Martin Lewis thinks it's a crazy idea and I value his expertise above Boris Johnson and co.
DM and guardian comments online also agree too ; very rare occurrence!

The stars must be aligned 🤣

EveryFlightBeginsWithAFall · 09/06/2022 15:18

Well you can only have £6000 before it starts affecting your benefits .

If you are entitled to hb you either earn very little or are on full benefits. I doubt very much a bank would want to lend me the money even if I did have 16,000 deposit

Is it to do with rtb

IsDaveThere · 09/06/2022 15:17

SaintJavelin · 09/06/2022 15:13

Yeah areas where there's fuck all jobs or amenities, there's a reason they're so cheap.

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Well I live in such an area and have a perfectly decent job thanks 😁I don't want to move, even if I could afford it.

JustTheOneSwan · 09/06/2022 15:16

Discovereads · 09/06/2022 15:14

Yes. Don’t see why working age disabled should get a free pass when elderly have to sell their homes to pay care home fees when they are disabled by old age. (Im disabled and lost my home/fell off the property ladder as a result before you think to call me a privileged twat).

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Harsh.
So because you got fucked over you want others to?

RedWingBoots · 09/06/2022 15:16

This is just to grab headlines.

Was just hearing two women on the radio one from a think tank and another a mortgage advisor. Both pointed out that if you are on housing benefit then you are a lower earner.

The mortgage advisor also pointed out that when it is explained to people that they will be responsible for housing repairs both internal e.g. boiler and external e.g. roof that most people would prefer to continue to rent from a Housing Association.

Also if the Housing Association is a terrible landlord they aren't going to be better as your freeholder whether it's for the entire property or just the grounds.

the80sweregreat · 09/06/2022 15:16

Martin Lewis thinks it's a crazy idea and I value his expertise above Boris Johnson and co.
DM and guardian comments online also agree too ; very rare occurrence!

TwinklingFairyLights · 09/06/2022 15:16

@JustTheOneSwan

Maybe I've misunderstood but if people claiming housing benefit and the housing element of UC will be able to use that income to pay a mortgage on a new purchase? Sure,y that means they will continue to receive the housing benefit or housing element of UC once they've bought? Seems unfair not to extend that to owners who lose their job after having owned for several years.

Discovereads · 09/06/2022 15:15

TwinklingFairyLights · 09/06/2022 15:11

So does this mean people who have bought previously will be entitled to housing benefit now, should they lose their job?

At the moment, if you own, you can't claim housing benefit or the housing element of UC if you own your own home.

Yes that’s exactly what this means.

JustTheOneSwan · 09/06/2022 15:15

IsDaveThere · 09/06/2022 15:12

For those mentioning the inability to save a deposit when you can't have savings of more than £16,000 - there are plenty of houses in cheap areas of the country where £10K would be enough for a deposit - for example on a small terraced or similar.

HA has the right to acquire, capped at £17k discount. Even in the cheapest area you aren't getting a bargain.

Femalewoman · 09/06/2022 15:14

@AnotherEmma I guess you don't watch the current news then....oops

Discovereads · 09/06/2022 15:14

JustTheOneSwan · 09/06/2022 15:08

Disabled people fortunate enough to have equity should be forced to lose their secure home and be at the liberty of rental?

Show quote history

Yes. Don’t see why working age disabled should get a free pass when elderly have to sell their homes to pay care home fees when they are disabled by old age. (Im disabled and lost my home/fell off the property ladder as a result before you think to call me a privileged twat).

SaintJavelin · 09/06/2022 15:13

IsDaveThere · 09/06/2022 15:12

For those mentioning the inability to save a deposit when you can't have savings of more than £16,000 - there are plenty of houses in cheap areas of the country where £10K would be enough for a deposit - for example on a small terraced or similar.

Yeah areas where there's fuck all jobs or amenities, there's a reason they're so cheap.

Blossomtoes · 09/06/2022 15:13

It’s never going to happen. It’s yet another attempt to distract from Partygate/the disastrous confidence vote. I dread to think what he’s going to dream up after they lose the two by-elections on the 23rd.

ThisIsGroundControl · 09/06/2022 15:13

Even more so as these people have secure tenancy, there are millions in private rent left on the whim of a landlord.

Plus if you own your own home you have to pay for everything that goes wrong, how will they have money for that? Benefits are not enough to live on anyway

JustTheOneSwan · 09/06/2022 15:13

TwinklingFairyLights · 09/06/2022 15:11

So does this mean people who have bought previously will be entitled to housing benefit now, should they lose their job?

At the moment, if you own, you can't claim housing benefit or the housing element of UC if you own your own home.

You can if it's interest only after a certain amount of time of you meet the criteria.

TwinklingFairyLights · 09/06/2022 15:12

CaptainMyCaptain · 09/06/2022 15:08

It's a terrible idea but the mortgage providers will still be the ones to say yes or no. If they don't think you are in a stable enough position financially you won't get one.

I agree. Some lenders won't even allow landlords to rent to those on benefits. I can't see those lenders lending to those on benefits.

IsDaveThere · 09/06/2022 15:12

For those mentioning the inability to save a deposit when you can't have savings of more than £16,000 - there are plenty of houses in cheap areas of the country where £10K would be enough for a deposit - for example on a small terraced or similar.

Original poster
blahloney · 09/06/2022 15:11

@YouCantBeSadHoldingACupcake apparently they can save up to £16,000 which is enough for a deposit where I live.

OP posts:
TwinklingFairyLights · 09/06/2022 15:11

So does this mean people who have bought previously will be entitled to housing benefit now, should they lose their job?

At the moment, if you own, you can't claim housing benefit or the housing element of UC if you own your own home.

ImTheToothFairy · 09/06/2022 15:10

Its ludicrous!!

JustTheOneSwan · 09/06/2022 15:10

blahloney · 09/06/2022 15:07

I also didn’t realise you could have £16,000 savings and still claim UC and Housing Benefits. The world’s gone mad.

Did you know people who WORK and earn MONEY get benefits?
I hope you're sat down.