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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

If the government can pay rich landlords mortgages off - why can't they pay the interest on mortgages of people going through financial difficulties?

283 replies

UndertheCedartree · 01/02/2020 18:52

My friend was asking how my financial situation was (as I have been unwell and in hospital) and I was telling her that it has finally been agreed that I am entitled to some help with my housing costs (interest on my mortgage) but that it is a loan. She was shocked and said when she had financial difficulties the government paid most of her high rent (more than double the interest on my mortgage) and it ultimately went to her rich landlord who was able to pay off his mortgage with it. It made me think about the supportive accomodation my boyfriend lives in. The owner is extremely rich and gets housing benefit for 10 bedrooms when there is only 6 as each tenant gets housing benefit at a 2 bedroom rate. He also gets £800 per month for utilities/broadband from the tenants.

It does feel unfair that I have to take out a loan to cover the interest on my mortgage while I'm unwell (as surely keeping a roof over myself and my children's head makes sense?) while wealthy landlords benefit from housing benefit.

OP posts:
siring1 · 01/02/2020 19:01

Your thread title and the facts you present are different.

Alsohuman · 01/02/2020 19:03

So what would you prefer? Should people unable to pay their rent just get kicked out on the street?

NotSuchASmugMarriedNow1 · 01/02/2020 19:04

If people who are renting fall on hard times they are elligible for housing benefit so that they do not fall behind on the rent and become homeless.

If people who own their own homes fall on hard times they are given a loan to see them through because they can repay what they owe when the house increases in value.

JontyDoggle37 · 01/02/2020 19:05

🙄 yet another landlord bashing thread from someone who doesn’t have an appreciation of economics or the need to keep people in their housing.
If someone falls on hard times and needs help to pay the rent, the government is usually there to step in in some way. If you have only been offered a loan and not full housing benefit it’s because your personal circumstances (home ownership and savings most likely) mean that you do not qualify because you are in a far better position than your friend was. Whether a renter rents from a private landlord or a housing association, that person or company still needs to get paid to maintain their business. They are not running a charity. The government paying that persons rent is to ensure they continue to keep a home. Serious reality check needs here.

Helpme1010 · 01/02/2020 19:06

It doesn’t seem fair no. But life is not fair. It’s not fair the people next door pay half what we pay for the same house as they have a council house, ours is private rent. It’s not fair we can apparently afford nearly £1000 a month rent but can’t ‘afford’ a mortgage. Lots of things aren’t fair and I really don’t know the answer 🙁

TriangleBingoBongo · 01/02/2020 19:06

It’s not a level playing field. But you’re targeting your anger at the wrong people.

Original poster
UndertheCedartree · 01/02/2020 19:07

@Alsohuman - no - their rent should be paid - but it's quite likely myself and my DC are going to be kicked out on the street!

OP posts:
Original poster
UndertheCedartree · 01/02/2020 19:09

@NotSuchASmugMarriedNow1 - that makes sense. But the reality is a bit different. First you aren't entitled for the first 6 months so already have arrears and as far as I can tell the loan will just mean I won't ever be able to afford to move.

OP posts:
Original poster
UndertheCedartree · 01/02/2020 19:12

@JontyDoggle37 - I can't get housing benefit as I have a mortgage, no savings. I am very behind on my mortgage and most likely I will lose my home.

OP posts:
Original poster
UndertheCedartree · 01/02/2020 19:14

@JontyDoggle37 - I appreciate a business needs to be run but really 10 bedroom rate of housing benefit for 6 bedrooms and £800 per month utilities which cost nothing like that??

OP posts:
Original poster
UndertheCedartree · 01/02/2020 19:15

@Helpme1010 - yes, you're right.

OP posts:
NotSuchASmugMarriedNow1 · 01/02/2020 19:15

It's shit I know. You're paying a mortgage and need help and the government won't pay but if you lose your home they will pay your rent! It's crazy.

You will get some money though. PIP, sickness pay, child benefit, child tax credits? Could you use a small amount of this to pay some of the mortgage so that you don't get too behind.

How bad is your illness? How long are you likely to be unable to work? Could you take a lodger in your home to help? Do some work from home? Have you spoken to the mortgage company?

What about your family? Could they pay it for you?

Original poster
UndertheCedartree · 01/02/2020 19:16

@TriangleBingoBongo - my anger is at the government. Who should I be angry at?

OP posts:
ulvie · 01/02/2020 19:22

I agree with you OP. The housing situation in this country is shocking. I don't know what the solution is though.

NotSuchASmugMarriedNow1 · 01/02/2020 19:24

The solution is to purchase critical illness cover if you have a mortgage to pay and no savings to pay it with.

Original poster
UndertheCedartree · 01/02/2020 19:25

@NotSuchASmugMarriedNow1 - my illness is very serious - I've been in hospital for almost 2.5 years (mental health). I get Universal Credit but it's not enough to pay for everything (my DC live there and are looked after their dad or a friend) mortgage, bills, food when I'm on leave, all the things for the DC. I'm already quite behind on my mortgage. I doubt I'll be able to work for at least another year and a half. No family but mortgage company have been pretty understanding so far. Just to make clear they have said I am entitled to this loan but I've not got it, yet. PIP not paid while you are in hospital.

OP posts:
Leaannb · 01/02/2020 19:26

@UndertheCedartree a t yourself for not having a larger safety net

Original poster
UndertheCedartree · 01/02/2020 19:27

@NotSuchASmugMarriedNow1 - yeah, I was pretty naive about that sort of thing. I did have quite a bit of savings but they were swallowed up very quickly as I got no benefits for a long time.

OP posts:
Chocpear · 01/02/2020 19:27

Why are some of the tenants getting a two person rate? Is it because they are couples sharing one room?

The UK housing situation is bad and more social housing is needed.

TriangleBingoBongo · 01/02/2020 19:30

You sound like you’re angry at the “rich landlords”

Reginabambina · 01/02/2020 19:31

The wealthy landlords are making money by offering a service. What the government is actually paying money for us to prevent people from being homeless. I get your point but the money going to landlords (many who are not wealthy) is a byproduct of preventing homelessness. An unintended consequence is the best way to put it.

Sn0wdr0psSnow · 01/02/2020 19:32

If you have a mortgage some of the options;

Take out illness or loss of employment insurance

Savings

Sell " stuff'

Rent out a room, tax free up to a certain amount per year

Rent out parking space, garden, loft

Original poster
UndertheCedartree · 01/02/2020 19:33

@Chocpear - they all get 2 bedroom rate and they are all single people. As far as I'm aware they get it as they are in supportive accomodation. However there is only one bedroom for the carers between all 5 of them. In effect it is a 4 bed house (as lounge/dining room are bedrooms) but the landlord gets housing benefit for 2 bedrooms from all 5 tenants.

OP posts:
MyuMe · 01/02/2020 19:33

There are insurance policies to cover your earnings when you cant work due to illness.

It's lunacy to have a mortgage without insurance.

YappityYapYap · 01/02/2020 19:34

It is unfair to be honest. If you don't pay your rent you end up homeless, if you don't pay your mortgage, you end up homeless! Infact, the process to get you out of a mortgaged house is actually quicker than the process to get you out of a rented house when payments aren't made.

Mortgage providers have the funds to move quickly to repossess a house but with rented, the landlord has to jump through a load of hoops and go to court and get an eviction order to get a tenant out. Most landlords are not actually rich though and a lot of them have gone through periods of getting no rent, refurbishing trashed houses and paying a lot of money in legal fee's just to get their own property back. Housing benefit or universal credit wouldn't be needed for private rentals if the council actually bothered to build houses but they don't. Instead, landlords generally take a risk in their renting their properties out and I don't think they should be shamed for accepting tenants and getting the rent paid via the government.

Your situation though, I think you should be able to get your full mortgage paid for a specified amount of time then if after that time, you are still in hard times and can't pay the mortgage yourself, you should be able to access some kind of emergency funding to pay legal fee's to sell up so that you can repay your mortgage and move on. This would probably be less than a years rent they will pay to some people. If the system was that low income families could get their mortgages paid by the government, there would be lots of people deliberately working part time etc knowing their mortgage would get paid and they'd then have an asset at the end... people that rent get nothing but time in the property. They gain a roof over their head and nothing else. They have no incentive really to try and take advantage of the system