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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:
irregularegular · 28/01/2022 15:10

OK. I've read the full thread now. Agree with everyone else, this is fraudulent benefit claim and she should feel guilty. What she wants to do with the money is completely irrelevant!!!

BillMasen · 28/01/2022 15:11

Op she/you can’t just have the mortgage (the debt) in one persons name and the house (the asset the debt is secured against) in different names. The lender needs to know they can obtain recovery of the debt if needed, and if the/your partner has all the debt but only half the asset they cant.

She/you also can’t just gift a deposit without explaining where it came from (theft)

It’s a bit more complex than she/you think

Cardilogical · 28/01/2022 15:11

Seems fine tome. Will she also get Housing Allowancd to pay mortgags or pay herself? Sorry don't know how system works.

lonelyapple · 28/01/2022 15:11

Bloody hell. Her benefits must be very generous if she can use them to put down a deposit (normally thousands of pounds in this day and age)!

TerryChoc · 28/01/2022 15:12

If they officially haven’t been married then they.. aren’t married. Therefore not husband. I’m unmarried with kids so not judging.
Anyhoo I don’t think it’s a bad thing really, it’s providing for their children in the long run
but if you tell us that their children are going without in view of them doing this then might be a different story

Bexxe · 28/01/2022 15:12

Help to buy or shared ownership makes no difference as you will have to apply to a bank or mortgage lender who will do a thorough check of bank statements plus credit checks.

A huge chunk of money arriving in her bank from the GOV will certainly raise suspicion. Its not as simple as popping your name on a tenancy agreement

GeidiPrimes · 28/01/2022 15:12

A big deposit saved from benefit fraud will likely attract attention

Definitely. I think OPs telling us a tall tale though

Original poster
Bringinglightandpeace · 28/01/2022 15:13

@GirlInACountrySong

OP.... there is no friend, this is blatantly about YOU !
I'm not the friend. Trust me. Morally, I would not be able to do what she's done.

So what should I advice my friend to do? Should I just keep my mouth shut or advice her about what she should do... eg. Telling the council she has a partner living with her... and getting legally married in the UK before purchasing a place.

OP posts:
TheMullerLightOwl · 28/01/2022 15:14

I'm not going to comment on the benefit fraud but she needs to bear in mind there are a lot of financial checks (rightly) performed on money that is used to buy a house and you have to prove where it all came from. If someone picks up that it's come from benefits to which she wasn't entitled then it might land her in some hot water.

endlesslystandingonlego · 28/01/2022 15:14

Assume this is an SDP on (probably) ESA, which is calculated from when you are entitled, not from when you claim. Being awarded PIP is usually the trigger, I've seen huge backdated awards of SDP.

However, one of the main qualifiers is that you live alone - unless the partner is also entitled to the SDP??

But this is a speak up or shut up situation. Either report your suspicions to the dwp and they will investigate, or don't and forget about it.

It's actually really difficult to get away with benefits fraud long term. I've seen a case where a claimants son used her address for a piece of important mail and it triggered suspension of benefits and all sorts.

BungleandGeorge · 28/01/2022 15:14

I’m not sure how she got a large backlog I thought you could only claim a minimal amount in retrospect.
But surely it’s obvious that pretending you don’t live with a partner because they work full time is fraud and removing money from people who deny inept need it? Otherwise every couple in the country with one partner on low/ no wage could claim, even if they have high overall income!

Hont1986 · 28/01/2022 15:15

So 'your friend' has been awarded PIP and thus got a backdated payment of Severe Disability Premium added to her ESA.

But she should not have been eligible for Severe Disability Premium, because she was living with her (non-disabled) partner. This is a pretty clear cut case of benefit fraud.

Leaving that aside, she needs to find a way to spend it within a year anyway, because after that it will start being treated as savings, which would reduce her ESA and HB. Of course, she probably won't report that anyway so who cares? Hmm

RockAndHardPlace1 · 28/01/2022 15:15

So she's committing fraud by claiming as a single parent? Hmm

YANBU in that case.

RockAndHardPlace1 · 28/01/2022 15:17

Also most mortgage places won't accept benefits anyway. I was refused and that was with just wages and pip.

Whammyyammy · 28/01/2022 15:17

It's people like the OP's 'friend' that give genuine people in need a bad name, or even worse Shane people in need away from claiming.

Pretending to be single, whilst living with your partner, who is working is blatant fraud. I really hope your 'friend" gets caught and has to pay every penny back, along with a criminal record.

Ps. Hope the Mortgage application gets rejected and reported to the DWP by the lender

RantyAunty · 28/01/2022 15:18

Whose idea was this? Hers or the partner?

Amisillyornot · 28/01/2022 15:18

She has lied and therefore NOT entitled to this money. This is fraud, she knows it hence why she's feeling guilty. You know it hence your unease in telling her what she's doing is right. No need to sugar-coat it, she's wrong in what she is doing.

Cardilogical · 28/01/2022 15:18

Whoops, didn't read full thread. That is fraudulent. I would dob her in. How much did she get?

Ragruggers · 28/01/2022 15:19

Having the deposit doesn’t mean you will be entitled to a mortgage whether shared ownership,help to buy or normal house buying.Every applicant will need to show their credit rating and ability to pay the mortgage and the rental part plus legal fees.You is not easy.They need steady jobs,no debt,savings.They will not qualify at the present time so need to think again .When she gets caught she will never get a mortgage.

MsAgnesDiPesto · 28/01/2022 15:19

@RantyAunty

Whose idea was this? Hers or the partner?
This just occurred to me. Is she being financially abused and controlled, in fact?
Original poster
Bringinglightandpeace · 28/01/2022 15:19

@RantyAunty

Whose idea was this? Hers or the partner?
Hers. Her partner is not too bothered but she really want a better life and a home for her family.
OP posts:
Whammyyammy · 28/01/2022 15:19

@Amisillyornot

She has lied and therefore NOT entitled to this money. This is fraud, she knows it hence why she's feeling guilty. You know it hence your unease in telling her what she's doing is right. No need to sugar-coat it, she's wrong in what she is doing.
I doubt it's feeling guilty, it's probably concerned over being caught
Original poster
Bringinglightandpeace · 28/01/2022 15:20

Definitely not the partner. Honestly, the more money he could save the better!

OP posts:
couldhavenotcouldof22 · 28/01/2022 15:20

Really fucks me off that I spent years saving to buy a house and criminals are defrauding the benefits system like this to buy a house! Absolutely disgusting. I hope she gets caught.

Hont1986 · 28/01/2022 15:23

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 pays the rent because she is fraudulently claiming Housing Benefit and ESA! This does not actually make her a single parent in any sort of way! Confused