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

[UndertheCedartree]

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.

Ivykaty44 - I was quoted hundreds of pounds per month for insurance due to health. Literally more than my mortgage. Was it crazy that I still wanted to own my own home?

Not everyone is on a level playing field when it comes to health. I could still get a mortgage and life insurance but not critical illness or income protection. I don’t see what’s so difficult for posters such as yourself to understand.

Paying the interest part of residential mortgages is far cheaper than paying full rent in private rental or extortionate temporary housing costs. What’s crazy is wasting tax payers money in this way. Especially as any assets op (or myself as in a similar situation) will likely go towards our care costs.

@MissSueDenim - I didn't say it wasn't the exception - however yes, some landlords do pay off mortgages from benefit payments. Did you read what I wrote about supported accomodation? Those landlords are making money from vulnerable people. However, the point is the government will pay for high rents (with a cap) but not pay a much smaller amount of interest on a mortgage to stop people becoming homeless.

@calliechain - thank you I will look into that

@ivykaty44 - if claiming the housing costs part of Universal credit if I was in rented accomodation I would get the majority paid. It would be a much higher figure than funding the interest on my mortgage.

There is a thing to pay the interest in mortgages. And it’s not re payable til the house is sold or the end of the term.

You didn’t want to pay for the insurance but want others to pay for your mortgage when it goes wrong

Can you not understand it’s the principle not the money, to make money from benefits is not correct and that’s why I can’t agree that the government paying a mortgage is right

I don’t agree with the minimum wage being low and UC topping it up, why should Greggs and Tesco etc use this as a top of of wages, it’s wrong

And the government is already paying off thousands if not millions of mortgages by paying housing benefit. Here the rates for rent are set at the.maximum housing benefit allowance. That's how savvy the landlords are.

When my family member was left a house (( good for her )) she rented it out. And has rented it as her kids uni fund instead of just selling it.

This was because she could make more money, renting it at £600 pm to housing benefit recipients which she prefers as the rent is guaranteed......all very good. But the reality is she's profiting off the tax payer. And when that house sells she'll get the full profit from that too.

Underthecedartree

Servers times you have stated that paying the mortgage would be cheaper than the rent

I have explained as kindly as I can why I think this is not right.

@CooCooAchoo - tbh I didn't take the mortgage on for financial gain I took it on for security for my children so they weren't having to move house a lot. I didn't say landlords were gaining anything extra.

@ivykaty44 - I don't want the government to pay my mortgage - just the interest on my mortgage. To keep a roof over my children's head so they don't end up homeless and costing the government a lot more. But I think we need to agree to disagree.

All these tenants that can’t find any landlords that will rent to people on benefits

There are threads on here, landlords won’t rent to tenants on benefits and it’s all due to insurance blah blah

Now all of a sudden all these landlords are renting to people on benefits and making a killing out of government money

You can’t have it both ways

Landlords made enough money, through whatever means, to buy another property to rent out in order to provide a regular income. They are not, in the main, a housing association or the council.
Many landlords are people who have lost a parent , or have a parent in care, who are trying to recoup money to pay for their parent’s care, or to provide a pension .
The current housing situation needs addressing as there are huge anomalies , but landlords get a bad deal in many cases.

I'm sorry you are in such a rubbish position op, I understand your anger, the system is unfair , I do think homeowners with mortgages should be entitled to some form if housing benefit even it's it's capped and/ or just pays the interest . Ultimately if you lose your house it may just end up costing more in benefits so it's like the government is cutting off its nose to spite it's face ! If you've got a mortgage you've clearly been a taxpayer too so I believe their should be a safety net for home owners who fall on hard times through sickness or redundancy .
And I do get what you mean about landlords, obviously they all want to make money but then there are some very unscrupulous ones out there that prey on vulnerable people and exploit the housing benefit system.

@MissSueDenim - my children are no more important. And there should be social housing so that there is stability for all children. But unfortunately we are not in that situation. But why would you not give vulnerable children stability if you could? Why would you be happy for them to be homeless when you could have spent less and kept them in their own home? Social Services certainly put a lot of emphasis on stability for the children.

Landlords wouldn’t be able to exploit the benefits system if there was enough social housing, and that’s only some landlords as so many aren’t allowed to rent to people on UC

Op don’t bother mumsnet is full of Tory landlords.

@mrsm43s - I suppose we see it differently. For me it is about keeping vulnerable children from being made homeless. And taking the cheaper option. I was happy to fund this as a taxpayer as I know many other taxpayers are.

@TheQueef - don't I know it!

@CooCooAchoo - well, they're lucky then! And good for them - I don't have a problem with landlords. Shame me and my children are so undeserving next to them. And I don't 'expect' but it is a policy I back 100 per cent - not just for me but everyone in my situation. But of course there is much more to it. The landlords of supported accomodation are getting benefit money from day one and extortionate utility money. And no - they're not 'rich' - they're properly seriously wealthy!

TheyDoDoThat

It’s hardly a lefties ideal that op should have the government paying the interest on her property debt

@ivykaty44 - I couldn't afford the insurance, that is all. And you say others to pay? Well I've paid tax for a long time and 'I' paid for the interest on others mortgage - I was quite happy to - it was a good policy imo. Can you please explain how it would be cheaper for me and my children to be in rented accomodation or most likely temporary accomodation? I'm afraid I disagree with you but others on this thread have probably explained my point better.

I explained at 21:40

@ivykaty44 - in supported accomodation all of the tenants are getting the housing part of Universal Credit. The landlord is of course aware of that at the outset. I know many landlords renting to people on benefits, but that may just be in my area - I don't know.

@1Morewineplease - I'm not against landlords. I know landlords who are rich and some not so. It is their choice how to make their money.

I'm not a Tory, nor am I landlord or indeed a homeowner.

OP you keep going on about your mortgage payments being a third of rent - if its so low then why can't the father of your children pay it? Is anything being paid at all to your lender?

am sorry that you're unwell and I'm glad you're receiving treatment, but public spending isn't for paying for assets for private individuals. If I became ill and couldn't make the payments I'd lose my car (and not be able to work) but it is not the government's responsibility to pay that debt, and nor is it theirs to pay yours. The government didn't co-sign your mortgage and have no vested interest, and would not see a return on their money. Which is why they offer a loan, I'd imagine.

Paying someone's rent on the other hand protects a person without assets from being further affected. The fact that it may or may not pay off a mortgage for someone else is immaterial, because the money paid isn't on behalf of a mortgage payment but on behalf of a person's rent obligation.

Also you keep focussing on this supported housing - I dont see how you can know about that for certain as you are neither the landlord nor a government agency making payment.