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?

This.
All. Day. Long. This.

I haven't heard anything to the effect that it's going to help existing homeowners who subsequently end up on benefits. I'd very much appreciate a link to wherever it says that's proposed. (I work in welfare rights and have already had a client ask me about this.)

At the moment, mortgage payers on means-tested benefits can get an element called "support for mortgage interest" added to their UC/ESA/PIP if they wish. But it's only a loan, and the debt to the govt is secured by a charge against the property. It's almost like a mortgage in reverse.

And iirc, the interest on the debt to is around 3.6%, which may be more than people currently pay on their mortgage.

I agree, it’s a typical Boris sound bite for headlines. It’s like the Rwanda hotels for deported asylum seekers, never going to happen, but it shuts up the back benchers and the ranters for a couple of weeks while he thinks up another boys own ripping wheeze.

No they won't. Who'd give up the security of work and throw themselves at the mercy of the Tory party during a cost of living crisis when they are being jettisoned from pillar to post like the political football they have become in the hope you might be able to use an undefined amount of housing benefit towards a mortgage the bank won't give you anyway. Meanwhile you can endure your new position in life as a social punchbag for any fucker with a chip on their shoulder.

I'll stick with my job thanks.

Not sure if it's already been said but housing benefit is paying the mortgage of thousands of private landlords already, why are people suddenly up in arms about this?..

I did a quote the other day out of interest to see how my claim would change if I changed jobs. Two people working full time (around 40k per year joint), paying childcare and renting are eligible for UC (and a fairly decent amount too). But hey all claimants are dirty scroungers according to some posters aren't they?! I think a lot of people are unaware of how many people are actually eligible.

Yes (as a mortgage payer who has never received HB) I agree with this.

It doesn't mean this though. Lenders have extended a high amount of forbearance to mortgage holders. This forbearance has made commercial sense to lenders due to increasing house prices ie the mortgage holder may have been on a payment holiday but the property was increasing by x amount a year. The question is, if house prices start to drop, are lenders going to extend the same level of forbearance to those who are in negative equity? I know my old Nationwide mortgage terms said that they couldn't start repossession proceedings until I had less than 10% equity in the property. This isn't an issue in an era of rising house prices because mortgage holders start to gain more equity as soon as they move in. It's a completely different story if house prices start to drop.

I thought that buy to let owners did pay a lot of tax? I remember a similar thread once a while back and a btl landlord / woman on here was listing his tax affairs etc. it wasn't all wonderful and seemed genuine. They are not all land owning tories ( although many are ) and they have to pay all the maintenance too. That's a shock as a 'home owner ' paying for that yourself and not cheap!
Anyways, maybe the banks won't play ball here and the stress testing will throw up too many problems even with a big discount towards the mortgage etc. interest rates will go up too :(
It is very fragile for many.

I know and it's appalling.

I'll just find a low paid job and work the minimum amount of hours to quality for UC and not be hassled. Loads around here.

Housing benefit can't be used to pay for a mortgage what you on about.

Read the news.

this

People can have savings but they will get less benefits as they take the savings into account.

If you have no children or children over a certain age the minimum hours to work is 35 a week. You won't be better off trust me

Not if the deposit savings are ring fenced, as per the news today.

Yeah I’m sure that will keep you warm in your old age, honestly it just makes me laugh out loud. I pay 40% tax on everything I earn over and above the threshold and it’s still worth my while dragging my arse to work every day to just not to be on minimum wage and having to deal with anybody at the universal credits department.

I believe me there’s been times I’ve considered it. But I would do it in addition to self employment and no way would I rely on the government to keep the roof over the children and i’s heads.

I have seen the shit they put people through, literally calling my friend who works full time by the way and had small children, at work to tell her that she needed to get in to an appointment with them with less than 24 hours notice otherwise she would be sanctioned. Literally the list of reasons they could sanction you just seemed to be endless.

Maybe I am being synical, but is this to divide the country. 🤔

Hear hear!

Newspapers are never accurate I've read so much rubbish about benefits in the past. Has anything been confirmed? I've not heard if it has.

Yep, it's working already

People who are up to their eyeballs in debt are compliant.

that’s the plan, right now we have far too many people who do not need to work, who are in a comfortable position without a PAYE income.
The plan is to get those people back into the workforce by pushing up the retirement age, by inflating away their savings and by forcing as many people as possible to be indebted for as long as possible.

I thought that buy to let owners did pay a lot of tax?

They pay tax at the same rate as the rest of us. They sob about being hard done by but they’re really not.

I agree - in fact, anyone who has the cheek to claim any sort of means tested benefits should prove they’re homeless, starving and at deaths door before their claim can be processed!