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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

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

388 replies

blahloney · 09/06/2022 14:58

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?

OP posts:
Fairisleflora · 09/06/2022 15:39

The government need to stop facilitating people to stretch themselves to afford housing. They need to bring down the cost of housing instead. And the only way they can do that is by building houses (and banning 2nd homes).

UnusualFace0FF · 09/06/2022 15:40

The proposed new rules are on money saving expert website

FourTeaFallOut · 09/06/2022 15:40

Punching down is a fucking ridiculous term.

BobbinHood · 09/06/2022 15:40

It’s a really piss poor policy. This government is getting completely desperate.

Nat6999 · 09/06/2022 15:41

If you are buying under right to buy you don't need a deposit, the discount counts as your deposit.

TwinklingFairyLights · 09/06/2022 15:41

the80sweregreat · 09/06/2022 15:31

Will the banks get on board with it?
Hoping that 07/08 years may give them a clue to be wary.

Yep, it's our own version of subprime in the making.

Many lenders are global businesses though and they will be doing their own reality checks, not just doing what Boris says they should. You're right, 2008 will have an impact on the decisions lenders make.

Lovemusic33 · 09/06/2022 15:41

Boris is just trying to earn brownie points and shut poor people up. The truth is hardly anyone on HB will be able to afford a deposit or the upkeep of a house.

I am on HB (single parent, 2 disabled dc, working part time), I don’t have £16,000 in savings, I have hardly any saving at all. The area I live in is an expensive area, I have right to buy my house but a 3 bed semi here is worth £250,000+ So £16,000 would not be enough for a deposit even if I had it. I wouldn’t want to buy unless I could pay for it myself.

What Boris has done is create more hate towards people claiming benefits, I’m sure it’s not what most people on benefits want, I certainly don’t. There’s no way I could afford a deposit or the upkeep of my own home and I’m sure many can’t.

UnusualFace0FF · 09/06/2022 15:41

www.bbc.co.uk/news/uk-politics-61739816

SpideySensesIsALoadOfShit · 09/06/2022 15:42

Lastqueenofscotland2 · 09/06/2022 15:01

It also as your post demonstrates… just further serves to make people who struggle financially who work against those who struggle financially and don’t work, rather than look at the root cause of the problem, ie rich folk hoarding property and avoiding tax

That is not the root cause of the problem. That is a lazy way to kick rich people (and I am not a rich person so have no dog in this fight!)

tootiredtoocare · 09/06/2022 15:43

Sound bite nothing more. Which mortgage provider is going to give a mortgage to someone on benefits? They can't get a decent loan to buy a washing machine.

TwinklingFairyLights · 09/06/2022 15:43

This has been the case for a while. We have a council house and can purchse our home for a £84,000 discount currently (40%). So that would be considered immediate equity. With the mortgage being so low risk there are RTB rates that don't require deposits.

The lender will still carry out affordability checks and stress tests. Even with the discount / deposit in place, the lender isn't obliged to give you the mortgage.

iCorvidae · 09/06/2022 15:44

blahloney · 09/06/2022 15:07

I also didn’t realise you could have £16,000 savings and still claim UC and Housing Benefits. The world’s gone mad.

You're not wrong!

The world has gone mad - when someone can work 40+ hours at the likes of Tescos (£9.55 an hour, gives an annual salary of £ 19,864)
1 child aged 6 (no childcare or any other money in or out)

Is able to claim £55.35 - HOW ON EARTH can someone working FULL TIME not earn enough to live on???????????????????????????

**

Universal Credit
£55.35 / weekly
We estimate your monthly Universal Credit award will be £239.85.
If you made a claim for Universal Credit today this would be paid into your bank account on 15 July 2022. Our estimate is based on you receiving earnings of £1,273.11 and other income of £0.00 in the period between 09 June 2022 and 08 July 2022 (your assessment period if you claimed today).

crosstalk · 09/06/2022 15:44

@womaninatightspot

The right to buy your council house was a major vote winner for Thatcher. Unfortunately she cascaded the problem down to future generations by first saying they could be bought at a discount, leaving councils selling off good housing stock under value, and then not insisting they ring fence the income to build more.

Will look at Martin Lewis website. But for all the reasons PPs have put up I can't see how this works especially as the economy tanks.

the80sweregreat · 09/06/2022 15:44

The Labour party should have built more affordable houses in the 90s / 00s.
Even Andy Burnham admits this.
It's only after 12 years that this govt have come up with this recycled idea. I heard today that the Labour Party said it was trialed and failed a while ago , but I don't remember anything about that. A lady on lbc was also pouring cold water over it and she seemed in the know from a financial point of view.

linelgreen · 09/06/2022 15:46

Ridiculous - I totally disagree that benefit that are funded by the taxpayer should be used to allow this benefits are there to allow a basic standard of living not to allow the purchase of an asset that will rise in value. In effect I am working and paying nearly £30k a year in tax and NI to purchase someone else a home.

Nothappyatwork · 09/06/2022 15:48

Housing benefit is going to be paying somebody’s mortgage either the benefit recipient at which point there is an end date the end of the mortgage or the landlords at which point you will finish paying his their mortgage after 20 years and then you will continue to just give them pure profit as tax payers which would you prefer ?

LakieLady · 09/06/2022 15:48

Blossomtoes · 09/06/2022 15:18

Apparently they’re going to get round the deposit issue by using the discount as the deposit. So 40% discount, the mortgage would be 60% LTV.

That's always been possible. I know quite a few people who bought their council houses this way.

ForTheLoveOfSleep · 09/06/2022 15:50

TwinklingFairyLights · 09/06/2022 15:43

This has been the case for a while. We have a council house and can purchse our home for a £84,000 discount currently (40%). So that would be considered immediate equity. With the mortgage being so low risk there are RTB rates that don't require deposits.

The lender will still carry out affordability checks and stress tests. Even with the discount / deposit in place, the lender isn't obliged to give you the mortgage.

I know. I was just stating it's not a new concept that a deposit isn't always required for a RTB mortgage

lonelyapple · 09/06/2022 15:50

YANBU. I think lots of people will just give up work and go on benefits. I know I will if it is really the case that I can get a free house paid for by housing benefit! Also ridiculous that those on benefits won't be subject to the £16k savings limits while those that aren't on benefits will. What's the point in working harder if you are basically going to be told you need to pay more tax so that someone else, working less or not all all, can be better off than you!

TwinklingFairyLights · 09/06/2022 15:50

linelgreen · 09/06/2022 15:46

Ridiculous - I totally disagree that benefit that are funded by the taxpayer should be used to allow this benefits are there to allow a basic standard of living not to allow the purchase of an asset that will rise in value. In effect I am working and paying nearly £30k a year in tax and NI to purchase someone else a home.

I agree to a certain extent in that I don't think benefits should be used to fund the purchase of council and ha houses. Main reason being, these properties shouldn't be taken out of circulation for those that will need them in the future. They should be seen as a public asset.

Gettingthingsdone777 · 09/06/2022 15:51

blahloney · 09/06/2022 14:58

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?

Maybe, not the least fair policy they’ve had though is it? A few people not losing their houses when they become unemployed I’d suggest is one of the least worst outcomes they’d be responsible for. I’m sure they’ll manage to mess it up though somehow so I wouldn’t worry too much. They are not a good government by almost any measure

JustTheOneSwan · 09/06/2022 15:52

lonelyapple · 09/06/2022 15:50

YANBU. I think lots of people will just give up work and go on benefits. I know I will if it is really the case that I can get a free house paid for by housing benefit! Also ridiculous that those on benefits won't be subject to the £16k savings limits while those that aren't on benefits will. What's the point in working harder if you are basically going to be told you need to pay more tax so that someone else, working less or not all all, can be better off than you!

FreeHouse! 🤑

Bingo.* *

Nothappyatwork · 09/06/2022 15:52

lonelyapple · 09/06/2022 15:50

YANBU. I think lots of people will just give up work and go on benefits. I know I will if it is really the case that I can get a free house paid for by housing benefit! Also ridiculous that those on benefits won't be subject to the £16k savings limits while those that aren't on benefits will. What's the point in working harder if you are basically going to be told you need to pay more tax so that someone else, working less or not all all, can be better off than you!

Do you think they’re gonna let you just give up your job and jump onto benefits 🤣
you will be sanctioned at every move if you are signing on as bodied person who hasn’t got a job, you will be required to spend 40 hours a week producing a diary documenting what you have done to find a job. So nobody will be throwing in the towel and going to live the viva Loca on benefits

5128gap · 09/06/2022 15:53

I would rather HB went towards paying a mortgage for the claimant, giving someone on a low income the opportunity to acquire an asset, rather than pay the mortgage of a buy to let landlord.

RewildingAmbridge · 09/06/2022 15:54

I admit I haven't read the full details but I assumed this was almost for the opposite, so if someone owns a house and loses their job, they currently can't claim housing benefit which means people lose their homes and then end up on housing benefit in rented which is more expensive than the mortgage they lost.