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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:
lollipoprainbow · 28/01/2022 15:03

I get benefits but no way would it be enough to save for a deposit for a house ! Every penny is used and I work. A mortgage for me would be way cheaper than rent.

Original poster
Bringinglightandpeace · 28/01/2022 15:03

@GirlInACountrySong

You said she's not going to be on the mortgage!?
Yes, she will put her name down on the mortgage.
OP posts:
Whammyyammy · 28/01/2022 15:04

@KarenTheGammonRemoaner

She is literally entitled to the money, it's hers, she is a beneficiary of said money. You don't have to earn benefits so why would she have earned it? You can't earn benefits, who's this loyalty to? The government? Taxpayers? We pay into this system exactly so people can benefit from it. I hope I've put this across to get through to you; your friend getting a grip and sorting her life out using that money would be a success story!
Entitled to it? Somebody hasn't read the whole thread
NotVictorianHonestly · 28/01/2022 15:04

Setting aside fraudulent claim.... she's going to give the money to the partner so he can buy in her name, and she'll have zero entitlement to actually live in the house because it will be in his name and they're not married? Risky. Particularly if she gets pursued for the fraudulent claim with no recourse to the house.

StoneofDestiny · 28/01/2022 15:04

The government rips us off at any opportunity, if someone finds a way to work the Benefits system to their advantage, good for them

It's the taxpayer getting ripped off and the NHS, School and every public service we depend on.

TyrannosaurusRegina · 28/01/2022 15:05

Home ownership should be a reward for going out and working hard to get ahead in life. Not for people to sit on their arses defrauding the system. How insulting to and infuriating for low paid workers who will never be able to afford to get on the property ladder.

Original poster
Bringinglightandpeace · 28/01/2022 15:05

@StoneofDestiny

I said below that in England he is not her husband legally but in their religion he is

It's the legal distinction that is important when claiming benefits and getting housing/mortgages

Oh right ok. He is her partner but he lives in their house full time and works full time. It's their home.
OP posts:
Bexxe · 28/01/2022 15:05

But its always lovely to know the £300 i pay a month in tax is going into the pockets of people claiming fraudulantly so they are able to put a house deposit down whilst i remain renting.

Happy Friday

irregularegular · 28/01/2022 15:06

I honestly don't know what she is concerned about. Assuming there is nothing fraudulent about the claim, then she is entitled to the money and she has done well to have (in effect) lived frugally enough to save it for a deposit. I know she received it as a back payment, but it is essentially the same thing - she must have been short of money and could easily have ended up in debt.

My only caveat is if she got though the period of low income by receiving money from others then she kind of owes some of the back payment to them.

Otherwise, good for her!

Original poster
Bringinglightandpeace · 28/01/2022 15:07

@NotVictorianHonestly

Setting aside fraudulent claim.... she's going to give the money to the partner so he can buy in her name, and she'll have zero entitlement to actually live in the house because it will be in his name and they're not married? Risky. Particularly if she gets pursued for the fraudulent claim with no recourse to the house.
But can she also put the house in her name?
OP posts:
me4real · 28/01/2022 15:07

@Bringinglightandpeace If she hasn't disclosed that her partner is living with her, then it's illegal and arguably immoral.

She shouldn't be using any other money than she was entitled to for anything.

But the reality is it happens a lot. (I'm on disability payments myself.)

GirlInACountrySong · 28/01/2022 15:07

Are they both legally in the U.K.?

Whole thing is sketchy

MsAgnesDiPesto · 28/01/2022 15:07

Yes, she will put her name down on the mortgage.

I’m not sure it’s as simple as just ‘putting your name down’. She will have to be a joint applicant, and the mortgage company will then look closely at her income. A big deposit saved from benefit fraud will likely attract attention.

BillMasen · 28/01/2022 15:07

@irregularegular

I honestly don't know what she is concerned about. Assuming there is nothing fraudulent about the claim, then she is entitled to the money and she has done well to have (in effect) lived frugally enough to save it for a deposit. I know she received it as a back payment, but it is essentially the same thing - she must have been short of money and could easily have ended up in debt.

My only caveat is if she got though the period of low income by receiving money from others then she kind of owes some of the back payment to them.

Otherwise, good for her!

Sigh
GirlInACountrySong · 28/01/2022 15:07

@irregularegular

I honestly don't know what she is concerned about. Assuming there is nothing fraudulent about the claim, then she is entitled to the money and she has done well to have (in effect) lived frugally enough to save it for a deposit. I know she received it as a back payment, but it is essentially the same thing - she must have been short of money and could easily have ended up in debt.

My only caveat is if she got though the period of low income by receiving money from others then she kind of owes some of the back payment to them.

Otherwise, good for her!

FFS! Are you for real??

phishy · 28/01/2022 15:07

If she’s entitled to the money then of course she shouldn’t feel guilty.

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.

Not everyone gets money from benefits or paren to. Some of us had zero help from anyone and had to scrimp and save every penny from 2 jobs.

DisforDarkChocolate · 28/01/2022 15:08

Doesn't bother me at all but having been on the wrong side of a benefits mistake I'd be holding onto it for a while.

GeidiPrimes · 28/01/2022 15:08

Benefit froth! With a "freeloading forriners" flavour

SleepingStandingUp · 28/01/2022 15:08

So she's claiming PIP (is her disability genuine?) and had then fraudulently claimed a top up in tax credits / UC which she'll put into a deposit for a house in shared name with a man she's not married to who has a history of financial incompetence.
And its OK because she's going to walk into a well paid full time job (to cover the bills when she wastes his accruing more debt) even though she can't afford child care.

Great plan.

Ragruggers · 28/01/2022 15:08

To obtain a mortgage you would be asked many questions ,have an excellent credit rating,regular savings.Your past will be checked again and again.You would not get away with vague answers even if you have a deposit.Bank details are checked.The lender wants to make sure you can afford the mortgage.They even ask how much your pets cost to feed.Theystand very little chance of getting a mortgage.With shared ownership you alsoneed to pay rent.Read up about it.this s not going to happen.The past will catch up with her one day.

Original poster
Bringinglightandpeace · 28/01/2022 15:08

@MsAgnesDiPesto

Yes, she will put her name down on the mortgage.

I’m not sure it’s as simple as just ‘putting your name down’. She will have to be a joint applicant, and the mortgage company will then look closely at her income. A big deposit saved from benefit fraud will likely attract attention.

Ohno... I will tell her his. But this is for a buy to help scheme/shared ownership not a house or is it the same thing?
OP posts:
GirlInACountrySong · 28/01/2022 15:08

OP.... there is no friend, this is blatantly about YOU !

Whammyyammy · 28/01/2022 15:09

For those that haven't bothered to read, this is what op has stated;

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.

ITS CALLED FRAUD

EvilPea · 28/01/2022 15:09

Oh no fuck that. Just seen all the updates since I started typing my initial reply up ahead. Scrap that all about it being a win win.

No it’s shameless fraud

Blossomtoes · 28/01/2022 15:10

@MsAgnesDiPesto

Yes, she will put her name down on the mortgage.

I’m not sure it’s as simple as just ‘putting your name down’. She will have to be a joint applicant, and the mortgage company will then look closely at her income. A big deposit saved from benefit fraud will likely attract attention.

It probably is or how would couples with a SAHP buy a house? MN tends to say mortgage when it means Land Register.

She’d be a complete idiot to say the money’s from backdated benefits. No lender would touch them.