To think being able to use housing benefits as a mortgage is unfair?

[blahloney]

I’m actually feeling quite annoyed. I currently work full time, don’t receive benefits but cannot afford to buy a house despite my rent being more than a mortgage. How is this fair?

Okay

I don’t know the exact figures, I did some work on this a few years back but the majority of private renters don’t get housing benefit / universal credit

I think the demographic might of changed in the last few years though I was actually really surprised as to how high the household income can be whilst a person is still in receipt of universal credits.

I presume this is why wage inflation is being encouraged to push people off it.

The answer to that of course if you put the difference into your pension and try and manage on the same amount as you did before you might find that you qualify for universal credits and thats to your overall benefit especially in the long term.

Pension. I don’t earn enough for one of those
about a month ago I opened one that allowed me to pay in £15 a month, thanks to some lovely mumsnetters Who advised on one that took such a small amount.

as I say generation rent “retiring” is going to be fun for the government.

Well that’s why they’re looking to reduce that by getting people who are currently receiving housing benefit off the payroll.

Just double checked it on the ONS website. Data is a few years old but there’s 1.3 million rented households in receipt of universal credit / housing benefit. But 4.5 million renting.

But this policy will make it worse not better. If they actually wanted people off HB they would build more affordable housing for rent and then people could save for a regular mortgage.

This policy is a bullshit gimmick designed to look like they are doing something. The policy has been condemned by housing experts and charities.

You cannot claim housing benefit to pay off a mortgage - even if Boris Johnson says so. he's never been very sure of his facts and this is another instance of preferring the soundbite to the reality - see below's non-partisan news feed

www.marca.com/en/lifestyle/2022/01/18/61e68004268e3e077f8b4600.html

CAN YOU CLAIM HOUSING BENEFIT TO PAY OFF A MORTGAGE
Those who are currently paying a mortgage for their own home should be aware that they are not entitled to the Housing Benefit scheme.

I think it is a daft policy and is put there for no other reason than to appease some Tory MPS who Boris has to appease by showing his "traditional Conservative Values" such as home ownership. Its ridiculous!

It's actually £6000 for Universal Credit claimants to get their full entitlement, but a sliding scale between £6000 and £16,000.

The interest will be paid, but only in the form of a loan, so you have a charge put on your home until you have repaid the loan. Years ago, the interest would be paid and you didn't have to repay it.

This policy is codswallop. How are people on UC going to be able to buy their social housing properties? They simply won't be able to afford it! Don't be sucked into this divisive propaganda by this horrific government. We need more social housing - it's not rocket science.

It another Pinocchio lie
Boris is in trouble and this starts him off on lie after lie. It's all he knows. Thd government haven't even discussed it with the housing associations yet!

Diamondsareforever123 · Today 18:20

This policy is codswallop. How are people on UC going to be able to buy their social housing properties? They simply won't be able to afford it! Don't be sucked into this divisive propaganda by this horrific government. We need more social housing - it's not rocket science.

Exactly. Boris gets people fighting each other because it reduces the flack on him. The people who are struggling ALL need support. He doesn't.

We stopped getting housing benefit last year after I earned too much one month (I was working at a covid vaccination clinic as well as my normal nursing job).
Could reapply for universal credit, but would lose 5 weeks tax credits in the process and would only be a few hundred a month better off, which given our circumstances should change this year, is not worth jumping through their hoops.

There's no way that extra few hundred would mean the difference between not being able to get a mortgage now and suddenly qualifying for one. Absolutely no way. This 'policy' is never going to help more than a handful of people.

Next year we will (hopefully) have a £60k joint income and a 5% deposit. We'd like the buy the house we currently rent, but I can't see any of the new ideas being of any help to us. I also suspect we would not pass affordability testing for a 95% mortgage at the interest rates we are going to be seeing.

That's from January though, before the latest announcement so not sure it's relevant.

This is absolutely the case.

@Lastqueenofscotland2
@AnotherEmma is still correct though, HB is used to pay landlords mortgages.

If you have a mortgage and find yourself jobless for whatever reason, you can get a loan (via a government outsourced company) which pays the interest for you. They then put a charge on the house which stays in place until you have either repaid the loan or the house is sold. This means there is no reason for anyone in that situation to become homeless. Many years ago the interest payments were paid by the government and did not have to be repaid.

This will only serve people who already have a Mortgage. And not for long.

It’s a stop gap for those who have a Mortgage so that they don’t become homeless as well as jobless. It is unlikely to cover Mortgage payments, but it will ‘keep the wolf from the door’ for a while.

No one should have to face being homeless.

It makes no sense - you CANNOT get HB if you have a mortgage so unless he changes the rules so they can still claim it? if you have a mortgage you may be able to get a repayable credit but it may not be for the whole payment & if you insure yourself against loosing your job they will simply take that off your benefit. Also claiming UC with HB part is hardly a stable income as DWP can reduce it if your salary is paid within a month (aka long month) or for many random reasons. Interest rates are rising how will people on benefits pay that? & if you own a house or mortgage it is counted as part of your savings & decrease (cancels) your ability to claim. (Anything above £5000 leads to a sliding scale of claim) He has not promised that they will replace like for like or in the same area . & tot top it all Cameron tried this several years ago & it didn't work because unless the Housing Society was originally a council house when the would be purchaser originally rented it. Simply because these are private organisations & when approached by Cameron crowd the Housing Associations said "fine but you have to pay for the debts this entails." (they are social housing & not owned by the government) Only a few ex council houses were sold. There are other issues too
Oh - who is going to give them a mortgage? a loss leading government department??

People can get some money to pay the interest. That's it. You can't purchase a house on housing benefit. Just helping people out in a crisis!

Yes they can. Please look at the news! There was an announcement yesterday. It's not in place yet but very soon they can

Again - maybe check out yesterday's news before commenting any further?!

For those who haven't seen yesterday's announcement and keep saying this is nonsense etc - news.sky.com/video/share-12630804