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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

AIBU to think I'm never going to be able to save enough for a house.

84 replies

WhoWhatWhereWhen · 22/03/2013 20:49

When Universal credit is introduced anyone with more than £16k won't qualify, I need much more than that for a mortgage deposit, I'm screwed.

OP posts:
MintyyAeroEgg · 22/03/2013 20:50

Can you translate? I don't understand.

Astley · 22/03/2013 21:04

How could you be savings that much while on benefits anyway?

CockyFox · 22/03/2013 21:08

How long have you been saving, because tax credits just about allow us to save £20 a month. It would take forever to save £16,000 at that rate.

Original poster
WhoWhatWhereWhen · 22/03/2013 21:08

Universal credit is replacing a range of benefits incl. Child tax credits and Working tax credits, at present all savings are disregarded when calculating how much CTC & WTC people get, soon anyone with more than £16k wont get any Universal credit.

This will reduce my income so i wont be able to save anymore toward my mortgage deposit.

OP posts:
Floggingmolly · 22/03/2013 21:08

Anyone with the wherewithal to save for a deposit on a house should not qualify for benefits.

Original poster
WhoWhatWhereWhen · 22/03/2013 21:09

I'm living with family while I save up a deposit

OP posts:
hwjm1945 · 22/03/2013 21:09

Well the idea is u get benefits paid for by the tax payer to help you live. Not to help u save to buy an asset for your own use

stormforce10 · 22/03/2013 21:10

Confused I thought the upper limit was £16000 anyway and deductions were made for any savings between £6000 and £16000 though I forget at what rate. Check the rules OP are you sure you're not inadvertently committing benefit? If you are better to contact them and sort it out than be found out and investigated

stormforce10 · 22/03/2013 21:10

Apologies cross posted - assumed you were talking about jsa

MsVestibule · 22/03/2013 21:11

soon anyone with more than £16k wont get any Universal credit.

Anybody with more than £16k doesn't need Universal Credit! My understanding of benefits (to top up wages or otherwise) is to ensure people have a basic to reasonable standard of living, not to allow them to save enough money for a deposit.

Original poster
WhoWhatWhereWhen · 22/03/2013 21:12

The £16k upper limit currently applies only to housing benefit & Council tax benefit, not to tax credits.

OP posts:
ThePskettiIncident · 22/03/2013 21:12

Ctc and wtc contribute towards childcare costs an will be merged into universal credit.

There's no reason why someone shouldn't be able to save whilst getting a contribution to childcare.

I agree with you Op if that's what you mean.

CockyFox · 22/03/2013 21:17

Just calculated that it would take 66 years for us to save £16000. Of course that would mean no cars as the £240 we manage to save goes on tax and MOT each January.

Original poster
WhoWhatWhereWhen · 22/03/2013 21:21

I guess I'll just take my savings out of the bank, piss it up the wall and apply for a council house.

OP posts:
MsVestibule · 22/03/2013 21:22

Can I get this straight? You live with your family, and your total family income allows you to claim UC. At some point, you want to buy a house of your own, and the best way of saving for a deposit is to continue living with family.

However, once you've saved £16k, your family will then stop receiving UC, meaning that you won't be able to save any more (or they'll lose the benefit), and you'll have to stay in the family home.

I understand what you're saying, but can't really think of a fairer way of doing things -I do think YABU to expect to receive benefits when you have £16k saved, but at the same time, I sympathise with the situation you're in .

It took me a while to write this, sorry if I've massively cross posted.

CockyFox · 22/03/2013 21:28

Thinking about it £160,000 is about what three bed houses are on the market for round here so £16,000 would be 10% deposit. And I am sure you can still get 90% LTV mortgages.

Original poster
WhoWhatWhereWhen · 22/03/2013 21:30

Houses are cheaper here but i still need more than 16k

OP posts:
perplexedpirate · 22/03/2013 21:34

Am I supposed to feel bad for you?
We got child benefit, for one child and not a penny more from the state. The thought of having £16k to save is a pipe dream. It will simply not happen for us.
The idea that my taxes are paying for your house deposit makes me sick. Sad

MisForMumNotMaid · 22/03/2013 21:35

I don't understand the full ins and outs but you could potentially cash gift money to your parents 'for staying in their house' as apposed to deliberately depriving yourelf of assets 'pissing money up wall to get council house - not that they're that easy to get'.

Potentially they as wonderful generous parents then save it for you, if it doesn't screw them financially, then when the total pot is adequate they gift it back.

CockyFox · 22/03/2013 21:36

I can see where you are coming from though OP, we had to put down a lot more than 10% and were only able to thanks to an inheritance or would still be renting.
I was just pointing out that £16,000 could be a reasonable deposit.

Astley · 22/03/2013 21:41

IMO it's really pretty horrifying that the benefit 'safety net' allows people to keep £16k of their own money in the bank gaining interest, while spending the tax payers money on everything else Hmm

Original poster
WhoWhatWhereWhen · 22/03/2013 21:56

So only high earners should ever aspire to buying a home?

Sacrifices have been made to get this deposit together, lots of people who have mortgages already get Tax credits, should those payments stop because "the tax payer is funding the purchase of a asset?"

OP posts:
Astley · 22/03/2013 22:02

No. People should not expect to save £16k while living at other people's expense! End of.

We don't have a mortgage. We can't save enough deposit. So should we sponge off everyone else for a few years so we can get one? No. Imagine of everyone did that.

Floggingmolly · 22/03/2013 22:04

No, only people who don't rely on benefits to fund their day to day expenses should feel buying their own home is an option.

hwjm1945 · 22/03/2013 22:08

I do not see why my taxes should help u save to buy your asset.do you?just as I do not ever expect to own a brand new car or a house in Chelsea or to privately educate my kids....cos I do not earn enough, sometimes some material assets are not in the reach of lower earners....