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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:
Amisillyornot · 28/01/2022 15:23

@couldhavenotcouldof22

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.
Couldn't agree more.
Ragruggers · 28/01/2022 15:23

You don’t have to be married to obtain a mortgage .It is based on income ,and your ability to pay .Credit rating.Read up on it .Ask how do I apply for a mortgage? Certain benefits ie PIP are not counted as income.

Booboobadoo · 28/01/2022 15:23

I wouldn't report her, but I would suggest she really looks into the implications of what she's planning to do, both the potentially fraudulent claim and also the feasibility of using the money for a deposit. I also wondered if she's in a vulnerable situation with her debt-ridden partner.

MsAgnesDiPesto · 28/01/2022 15:24

@Bringinglightandpeace

Definitely not the partner. Honestly, the more money he could save the better!
Well, he’s now got access to a big pile of fraudulently gained cash, which he is expecting her to hand over to him. That sounds pretty calculating to me. She will take the consequences when they are found out, because she made the application, so he would end up with a house she had funded from fraud and she would be the one in prison.
Justtobeclear · 28/01/2022 15:25

She’s committing benefit fraud and is not entitled to the money. How she uses it is pretty irrelevant as she has already obtained it but she has no justifiable reason to have it. Her OH being in debt is no excuse to commit fraud!
Her plan is very flawed anyway - they will want to consistent work history for both, good credit scores and will want her to account for pretty much every penny for the affordability checks. Also, the interest rates on shared ownership/non standard mortgages are significantly higher than standard mortgages (around 3.5%) and so she will likely be paying more than she expected. Lastly, when I got a shared ownership mortgage, I had to prove where my deposit came from as they have a very strict list of approved sources of the cash. She may find she won’t make it past all these hurdles!

RantyAunty · 28/01/2022 15:26

It sounds like her partner is more dead weight with all his spending and debt.

It is fraud/theft. Instead of running up debt, overspending, and having babies, they both could have been getting better jobs and saving like most people do. I couldn't remain friends with people like that.

AllTheUsernamesAreAlreadyTaken · 28/01/2022 15:28

Anyway, she doesn't want him to pay rent at their current accommodation as she wants him to use most of his wages to pay off his debts

We’re 8 years into saving for a house deposit while we simultaneously rent. I didn’t realise not paying rent when someone in the home is working full time was an option all along. And that we could have had a entire deposit given to us too!

I hope they found out. Scumbags

Original poster
Bringinglightandpeace · 28/01/2022 15:29

@Booboobadoo

I wouldn't report her, but I would suggest she really looks into the implications of what she's planning to do, both the potentially fraudulent claim and also the feasibility of using the money for a deposit. I also wondered if she's in a vulnerable situation with her debt-ridden partner.
To be honest. She really wants the partner the pay off the rest of his debts
OP posts:
ninnynonny · 28/01/2022 15:30

I dont think I want to pay the rent anymore - I think I'd rather pay off some other stuff I owe. I'll get dh to say I've moved outand pretend he's on his own, then we'll get loads of money between us but will be lying and getting more than we should. Ooh look a massive back payment from when we have been doing this, which has been ages. Excellent, got away with it
Yes? That's the situation? It is really not on I'm afraid

WowIlikereallyhateyou · 28/01/2022 15:31

Well I hope your “friend” gets everything she deserves!

Franklin12 · 28/01/2022 15:31

Both of them need to hang their heads in shame. That is tax payers money. I couldn’t give a toss that he isn’t good with money. She lied and has defrauded all of us.

2bazookas · 28/01/2022 15:31

If her income depends on state benefits then no mortgage lender is likely to offer her a loan.

oviraptor21 · 28/01/2022 15:31

When she gets found out she'll be hit with a large overpayment (presumably if it's big enough for a deposit) plus interest plus possible potentially a criminal record for the fraud. www.turn2us.org.uk/Benefit-guides/Fraud-Investigations/What-penalties-are-there-if-I-am-found-to-have-com

ninnynonny · 28/01/2022 15:31

His Debts Are Not The Taxpayers Problem ffs!! We'd all like to pay our debts off by getting money that we're not entitled to I imagine

Suzanne999 · 28/01/2022 15:32

As long as she’s entitled to the money then that’s a good idea. Setting up home security for her family for the future.
Only way I’d ever be against the idea would be someone who is cheating the system.

Quackpot · 28/01/2022 15:33

This is fraud

anon12345678901 · 28/01/2022 15:34

@couldhavenotcouldof22

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.
I agree. People like that aren't showing a great example to their children. Commit fraud, be lazy and just rely on others to give you money. Fantastic way to parent.
MsAgnesDiPesto · 28/01/2022 15:34

@Suzanne999

As long as she’s entitled to the money then that’s a good idea. Setting up home security for her family for the future. Only way I’d ever be against the idea would be someone who is cheating the system.
You should probably read all the OP’s posts before commenting.
Quackpot · 28/01/2022 15:34

@Quackpot

This is fraud
This was in reply to you saying she has an undeclared partner
Iamkmackered1979 · 28/01/2022 15:34

So ‘partner’ has loads of debt yet will be getting a mortgage with random money from her so it’s in his name but she doesn’t trust him to help with the rent. Seriously fraud and a crap partner, you need to give your friend better advice!! Tell her to chuck him out and put the money away for a rainy day. HMRC do check so if the partner gets a credit check whilst using your friends address they will come for her. 3k penalty too before you even start paying back what you wrongly claimed!

I’ve been homeless and in temp accommodation for 4 years I work but can’t move forward let alone buy a bloody house and you’ve got folk like her cheating the system beggars belief really

ittakes2 · 28/01/2022 15:34

Anyway, she doesn't want him to pay rent at their current accommodation as she wants him to use most of his wages to pay off his debts. Which is fair enough.
Do you really think it’s fair enough they are lying about living together so she can get tax payer funded money so he can use his income to pay off their debts? You are deluding yourself - the idea of benefits is not so he can pay off his debts. I have no issue with benefits - there are members of the community who are in genuine need but your friend and her partner are an example of why some tax payers get angry about money going to people who rip off the system.

anon12345678901 · 28/01/2022 15:34

@Suzanne999

As long as she’s entitled to the money then that’s a good idea. Setting up home security for her family for the future. Only way I’d ever be against the idea would be someone who is cheating the system.
And she's not. She's claiming fraudulently.
Amisillyornot · 28/01/2022 15:34

@Bringinglightandpeace you seem very invested in your 'friend's affairs and seem to know a lot about what she wants and how she feels. You need to understand what youbare doing in benefit fraud!!

Hont1986 · 28/01/2022 15:34

She really wants the partner the pay off the rest of his debts

I wonder if she'll feel the same way when the DWP asks her to pay back the years of fraudulently claimed benefits she's had.

Dishwashersaurous · 28/01/2022 15:35

This is fraud. Pure and simple.

She is claiming as a single parent.

She is not a single parent she has a partner she lives with.

She could very very easily end up with a criminal record.

She needs to immediately correct her journal/tell her work coach that her partner lives with her.

Then at least they can adjust the payment going forward.