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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

to give up my council house and buy a house?

106 replies

dirtyface · 12/08/2013 08:51

here is our situation, i am 33 and dh is 42. am (mostly) a SAHM to 2 dcs relying on tax credits and a very small income from a (very) part time job :o

DH earns about 28k, which is an ok salary where we are are (in the midlands). we are in a 3 bed council house which i was lucky enough to get a few years ago, as was a single mum at the time. my house is my bit of security, i love it, i love the area even though its a bit rough lol and i know if the worst happened the kids and i would still have it.

i always assumed buying was out of reach due to mad house prices in the last few years. but did a bit of research and looks like we could buy a decentish house for about 80 - 90k. nothing great, just a small 3 bed. we have a couple of grand in savings already and could easily save a few more by really cutting back and would poss get help from my Dparents as they are very keen for me to buy a house.

however, i worry if we bought a place, if dh and i split up i would be left a single parent again in private rented. as this is exactly what happened to his exW. as, like me, she didnt work, she was a SAHM, and he paid the mortgage etc and got the mortgage based on his salary. i would never get the security of a council place again.

DH is opposed to buying as he owned before we met and says its not all that. he had money problems and at one point was depressed and almost suicidal due to the pressure of trying to keep a roof over his familys head when interest rates went up :( and i never want him to feel that again. he feels there is more security in renting ie if he lost his job we could just sign on and get HB to pay the rent, whereas we could lose everything if we owned a house and he lost his job (or worse). in fact money stresses were one of the (admittedly many) things that caused him and exW to split.

i also worry that with DH's age we may not be offered a mortgage anyway. as he would be 67 by the time its paid off. plus both of us have had debts / bad credit in the past (although they have mostly been cleared or are being cleared now)

however, buying has always been a big ambition of mine, and one of my biggest life regrets is that i did not buy in the late 90's / early 00's when i had the chance and when prices were very affordable. and i think its a now or never thing tbh. unless we have a lottery win :o

something i would also add is that we are TTC for #3. so if that happens it will effect our finances (obviously)

phew! sorry its long but would appreciate some advice please :) x

OP posts:

RedHelenB · 12/08/2013 09:00

I would say buy if it is something you will regret not doing - £100,000 is roughly 3x your husbands wage so definitely affordable.

lougle · 12/08/2013 09:00

Do not, do not, do not, buy.

You have the best thing since sliced bread - a home you can treat as your own, secure for life, maintained by the council.

If you want to, you could apply for right to buy or shared ownership.

whiteandyellowiris · 12/08/2013 09:04

could you buy your council house, or is that not allowed anymore?

Drquin · 12/08/2013 09:11

I guess YANBU in wanting to buy a house, the perceived security and providing your own future etc etc.
It'll be easy enough to work out the sum - cost of house / cost of mortgage / known living costs and estimates of others versus known income. What you don't know - and no-one really does when starting off - is whether any of those variables are going to change, and when they might, and whether the change is something you can easily absorb or not.

Is this about perceived security? Or about another house?
Could you achieve some security through savings / buy-to-let / investing the money elsewhere?

Blissx · 12/08/2013 09:11

Yes, but the OP no longer 'needs' it, lougle. What about another single parent family who is down on their luck, but can't get a council home as there are none available, even though a lot of the current tenants' circumstances have changed? Just saying...

OP, when,you buy a property, you have to get life insurance when you take out a mortgage. You can also take out further insurance to help if you were to be left alone. In addition, make sure you have a joint tenancy agreement so you are still able to claim half the profit from any future sales. There are ways you can help to secure your situation. Seek professional advice before buying. The feeling of owning your own home can't be beaten in my mind! Good luck with what you decide to do.

Original poster

dirtyface · 12/08/2013 09:12

i will have Right to buy in about a years time according to my housing officer. would be able to buy it for about 70 - 80k i think (based on present zoopla prices)

but i would honestly not be surprised if it was scrapped by then so wouldnt want to bank on the possibilty.

and tbh i am quite opposed to RTB as its helped cause the present housing crisis and i would feel a hypocrite and that i would be "part of the problem" if i took away another social housing house. if we that could go to a family who needs it more than we do.

i also feel a bit guilty for living here tbh. as we earn good money and could private rent quite easily. but we won't because there is no security in private renting plus rent would be a couple of hundred a month more than it is here.

OP posts:

Fairenuff · 12/08/2013 09:13

I'm not sure if you've got your financial information quite right.

if he lost his job we could just sign on and get HB to pay the rent, whereas we could lose everything if we owned a house

If the HB would cover the rent, why would it not cover the mortgage?

Also, if you are currently trying to pay off debts, wouldn't you want to do that before you commit to another massive debt?

Also interest rates have been very low for a long time and are likely to go up so, bearing in mind how that affected your dh in the past - depressed and suicidal - do you really want to risk that again?

noisytoys · 12/08/2013 09:18

In your situation I would stay put. You have the security of a home for life, with none of the maintenance costs. I would give anything to live that. We bought because we were private renting and it cost way too much for no security. We pay 1/3 of our mortgage payment in insurances and maintenance so it does add up.

FlouncyMcFlouncer · 12/08/2013 09:19

Housing Beneift will not pay your mortgage, only the interest on it.

If HB paid your mortgage, taxpayers would be buying houses for the unemployed!

Reality · 12/08/2013 09:19

A few things from your post.

What happened to the house he threw his ex wife out of?

Do you have children together? Does he have DC with his exw?

It worries me that you think you'd have to lose the house if you split up, particularly if you are putting your savings (and parents' help) in to the house.

Pigsmummy · 12/08/2013 09:25

Whilst it is your ambition to buy a house it isn't your earnings that any mortgage would be based on, I think you should stay put, continue saving and when you have a decent amount in the pot and can buy together (i.e. You can contribute) then look at it.

Your DP is expressing serious doubts that you shouldn't dismiss quickly, if you buy together however you can reassure him that keeping payments up to date will be a joint responsibility.

ribeye · 12/08/2013 09:25

fairenuff housing benefits are for rent only. you are not entitled to it if you own your own home.

government benefits paying off peoples mortgages does not happen (without fraud being involved)

ribeye · 12/08/2013 09:31

btw am i the only one who thinks there should be no guilt in op keeping the council house despite their improved financial situation?
social housing was never introduced solely for those at rock bottom. it is the governments fault for selling off housing stock and giving up control of the rental market.

op you should not allow any perceived guilt to affect your decision making.

BrokenSunglasses · 12/08/2013 09:49

If your DH is the one earning and he's not keen, I don't think you should push it tbh, because you are living in tax credits. You can't rely on tax credits always being as overly generous as they are, so if that changes, you might not be able to afford a house.

Pert of me thinks that if you can afford it between the two of you then you have a social responsibility to do so, but if you are claiming tax credits and TTC a third child, then that probably isn't a priority for you.

Fairenuff · 12/08/2013 09:52

Ah, yes, I was getting mixed up with private renting where the HB can go towards the rent which is, in fact, paying off someone else's mortgage.

MrsBucketxx · 12/08/2013 09:54

Ribeye but there is no housing left, so it should be for those in true need only.

If I was op I would think twice though if its leaves them worse off in the long run. You have to factor in solicitors fees surveys. Into the cost of buying. And with only her dh's salary it could get tight.

Advice from a financial advisor or ma could help

Reality · 12/08/2013 09:55

YOu can get mortgage interest relief, but I think it only kicks in after a few months, and obviously only pays the interest, so is only any good if your mortgage is interest only or you can switch it to IO, or come to an agreement with the bank.

Original poster

dirtyface · 12/08/2013 10:08

reality

he didn't "throw" his exDW out of their house, they sold it together, split the profits (but there was only about 10k each after the mortgage and debts paid etc) and she moved into private rented as did he.

he has a 16 year old DC with her, and a 4 year old DC with me. i have a 7 year old DC as well who has a different dad. DH has helped bring ds up since he was 18 months old (although his dad is involved too)

and yes HB does not pay your mortgage, only the interest i believe (and only for a short time)

and brokensunglasses we do not rely on tax credits, we only get a small amount cos of dhs salary. they are handy to have, but tbh if they went we wouldnt miss them. as dh is able to pay for most things. and i am prepared for them to be taken away anytime soon with all the benefit cuts

i do agree with ribeye to a certain extent as well, social housing was originally not just for the very needy, but for anyone who wanted it. it should still be the case, but sadly it isnt. and hearing stories about people in dire straits who cant get housed makes me feel guilty, but at the same time i have to think of my own family

OP posts:

LegoAcupuncture · 12/08/2013 10:14

Just because you're not earning enough to get a mortgage does not mean you can't be joint applicant on your Dhs mortgage. I used to work in mortgages and we saw a few applications where the 2nd applicant was a SAHM. There is no reason you can't go down on the mortgage, unless of course you have a scary credit history.

mrsjay · 12/08/2013 10:19

keep your house you dont sound that keen your dh doesn't sound that keen it is your parents who seem to want you to buy a house maybe try and save for a deposit see how hard it will be , and keep paying your rent, folk will say oh but council housing is for the needy keep your house until you are confident buying is what you both want and can afford to do,

Reality · 12/08/2013 10:19

My apologies, I read it that they'd split and he'd kept the house, which seemed a bit off to me.

If you do buy, you need to protect your investment, make sure you are joint owners, get it all watertight.

mrsjay · 12/08/2013 10:24

If you do buy, you need to protect your investment, make sure you are joint owners, get it all watertight

yes to even if you are not earning you can go on the mortgage infact you should be on the mortgage

Runningchick123 · 12/08/2013 10:35

I would buy a house because I wouldn't be surprised if rules change on social housing tenancies in the coming years due to the massive shortage of properties. Even under current rules you would be subject to bedroom tax if you are unemployed once your children are old enough and have moved out. But in the future I wouldn't be surprised to see people forced out of council homes deemed to be too big for their needs or people with an income deemed to be too big to warrant a need for low cost housing.
If you own your own home then its yours as long as you pay the mortgage and there will be no rent to pay in old age. No stupid concil rules to adhere to / worry about being changed.
Retirement age is 66/68 for most people now so the mortgage length isn't a problem, but you could overpay by £100 each month to shorten the mortgage term or gve some leeway in case of redundancy etc. yo cold also take out mortgage protection insurance to cover payments in case of illness/ redundancy.

DollyGrey · 12/08/2013 10:39

I'm in a similar boat, I'm currently in a council house and considering private renting. The area and school is not ideal but its very reassuring knowing I will always have a house and possibly RTB. Decisions, decisions!

titchy · 12/08/2013 10:53

Do you still want to be paying rent when you're 70?

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