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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To use benefits to put down a deposit for a house

435 replies

Bringinglightandpeace · 28/01/2022 14:08

Hello all,

This thread is not about me.

I have a friend who is feeling incredibly guilty. This is how it goes... so she applied for benefits, she has children and a husband,,, well technically partner but anyway she received a huge backlog of benefits. She confided in me that she would like to use the money to to put down a deposit for a help to buy scheme or shared ownership. I told her "well you have to use every opportunity that you can get" but in my conscience, I was thinking, is this right? I am on benefits myself so not judging at all. She feels a bit down about it as it's not her hard on money that she used to put a deposit down..but then again some parents give their children money for a deposit... so I guess it's similar.

However, I feel a bit of itch and thought to myself that I don't think what she is doing is right. But then again, I don't want to come across as jealous. What do you all think?

OP posts:
Namechangehereandnow · 28/01/2022 15:44

love she was already claiming benefits, assume Universal Credit .. then she was awarded PIP. The PIP entitles her to a disability premium of her UC - the backdated increased UC payment is the huge sum of money being talked about. As PIP claims are taking so long to go through and be awarded, there could be a large sum owing.

However, the UC claim is fraudulent so it’s all irrelevant really. Let’s hope she’s caught somehow.

ScrollingLeaves · 28/01/2022 15:44

If she was entitled to those benefits I think it makes absolute good sense.

How would it be more ‘moral’ to spend that accumulated back- log on rents, or on presents for her children, or anything else?

If she was not getting what she was entitled to before, presumably she has had to wrestle through some financial difficulties up till now.
If she managed without getting into bad financial trouble that was commendable, as is this wise plan.

DiddyHeck · 28/01/2022 15:45

I do love a benefits frothing thread but this one is not my favourite!

"it's not her hard on money that she used to put a deposit down"

The mind boggles 🤣🤣🤣

DiddyHeck · 28/01/2022 15:45

*now my favourite

Namechangehereandnow · 28/01/2022 15:45

bjj … please read the thread - BENEFIT FRAUD!

Berthatydfil · 28/01/2022 15:48

She feels like she doesn't deserve it because if her situation. She hasn't told the council that her husband is living with her but wants him to pay off all his debts. They think she is a single parent- but she is in a way as she pays the rent and bills, he mainly pays for the shopping, car an electric.

She is not entitled as she has not been honest in her claim as she is not disclosing her full circumstances. This is fraud.

bjjgirl · 28/01/2022 15:48

@Namechangehereandnow

bjj … please read the thread - BENEFIT FRAUD!
Ah yes the that is awful, apologies I have cocos so I'm slightly delirious I will back out now Blush
Kebabandchipsplease · 28/01/2022 15:48

This reply has been deleted

Message withdrawn at poster's request.

Original poster
Bringinglightandpeace · 28/01/2022 15:49

But the issue is that I know of many people who do this and they do not get caught.

OP posts:
lisaandalan · 28/01/2022 15:49

In other words she needs to claim benefits because she lives with a ponce who pays nothing to live there and spend his own money on his lifestyle and runs up debts because he lives beyond his means.
If I were her friend I say to her yes use the money to buy a house, leave the cock lodger of a boyfriend of your behind and move on alone.

IncompleteSenten · 28/01/2022 15:49

Using benefits she is genuinely entitled to to secure accomodation - absolutely fine.

Committing housing benefit fraud - wrong.

Original poster
Bringinglightandpeace · 28/01/2022 15:50

@Kebabandchipsplease

With IS, she would be called to a IUC (interview under caution), there does not have to be a report of fraud, we can find out things in many other ways.

Depending on how the IUC goes, that would determine the next steps, but at £10k there is the possibility of prosecution where she would have to attend court, it would be reported in the local papers and the chance of a custodial sentence, which would affect her kids massively. Even if no sentence, it would mess up her benefits for years to come, as well as the potential for this house she is planning on buying being repossessed.

Is it really worth it??

You know what. I'm going to tell her before it's too late.
OP posts:
crowsfeet57 · 28/01/2022 15:50

But what's the issue, all she has to say that it's from her benefits? They wouldn't not give them a mortgage just because of that

Clearly you haven't tried to get a mortgage lately.

ProudThrilledHappy · 28/01/2022 15:51

I am astonished they are getting away with it to be honest. When my FB got a divorce he came to stay with me for 3 weeks, had some legal paperwork addressed to him at my address and pretty soon after I had a letter from HMRC suggesting they suspected I was living with a partner and to get in touch asap. Surely his bills are at the same address?

BillMasen · 28/01/2022 15:52

@Bringinglightandpeace

But the issue is that I know of many people who do this and they do not get caught.
Oh well that ok then. Theft is fine as loads of people do it.

The issue is that it’s theft, not that others do it too!

AllTheUsernamesAreAlreadyTaken · 28/01/2022 15:52

@Bringinglightandpeace

But the issue is that I know of many people who do this and they do not get caught.
You know lots people who have made fraudulent benefit claims to pay off their debts and buy a house?
ProudThrilledHappy · 28/01/2022 15:52

That was supposed to be DB as in brother

Kebabandchipsplease · 28/01/2022 15:52

This reply has been deleted

Message withdrawn at poster's request.

Quackpot · 28/01/2022 15:52

Why did you report the thread hmm. I knew I should not have said anything.

Because it's glorifying benefit fraud

Soakitup37 · 28/01/2022 15:52

I purchased my property via shared ownership (same effect as help to buy)

The process is exactly the same as any house purchase in that you need a deposit, the borrowing for the mortgage (in this case joint mortgage) assuming she wants her name on the mortgage. If it’s solely in his name the amount they can borrow will be lower and with debts it’ll take 6 months of bank statments to show that he is a reliable borrower. If it’s a joint application they have to declare where the money came from, I inherited mine and I needed proof of this. she’ll have to declare where the money came from even if it goes via the partner.

If it’s a joint statement she also needs to be in full time work with a salary and steady employment to prove she too is reliable to lend to. Again that will take 6 months to even start the process.

It’s not as simple as giving a help to buy scheme £xxxx and saying we’d like to pay for this house please. Legally they have a lot to cross just like anyone buying on the open market and if what you say is true that he’s not very money savvy then I don’t think this idea is going to get off the ground.

The backdated benefits seem to be shifty in the way it’s been obtained at best, but if she’s going to do something that puts her in eye view of solicitors etc this won’t be something she can hid if she’s fibbed on her application. I’m a single parent on an average London income, I don’t qualify for a single benefit even though it would be of huge help to me financially, so I’d be surprised that she’s got enough to take forward for a deposit and sustain that costs.

Should you fess up/confront her? depends on your friendship, warn her of the implications, sure, but I don’t think you need to say anything tbh, this sounds to me like the situation will work itself out.

uncomfortablydumb53 · 28/01/2022 15:53

They're both living in Cloud cuckoo land! Her "plan" will come unstuck at the first hurdle, not even mentioning the Fraud
I speak as someone on ESA and Ongoing Enhanced PIP
However big a deposit they have won't entitle them to a mortgage plus he likely has CCJ's etc, even with a " well paid job"
You also have to prove where the produce evidence of where the deposit came from... and the lenders go through everything with a fine tooth comb
I'd be tempted to report to DWP that he is living there and let the holy mess unravel

Mumoblue · 28/01/2022 15:53

I’m more than a little skeptical about this story.
You know “many people” who commit and get away with benefit fraud, despite it being a tiny minority of benefits?

Gilly12345 · 28/01/2022 15:54

If she has declared she has a partner and is entitled to these benefits/money then it is her decision how to spend the money.

I really do hope she has declared she is living with a partner or that would be fraud.

ShallWeTalkAboutBruno · 28/01/2022 15:55

@Mumoblue

I’m more than a little skeptical about this story. You know “many people” who commit and get away with benefit fraud, despite it being a tiny minority of benefits?
Agreed.
Original poster
Bringinglightandpeace · 28/01/2022 15:56

Of course I don't know "many people". I was just being loose in my words. But it is quite common and I have not heard of one of those people being caught.

OP posts: