Benefits - housing , tax credits, mortgage????? Tearing hair out!

[Tullippa]

Hi

I will be as brief as possible, in a right pickle, my husband and I have separated and have a joint mortgage. Our house is now on the market, we are reasonably amicable, trying our best for the sake of the kids, 7 and 10.

I've seen a perfect house for me and my 2 children - local, near friends and school, but don't think I can qualify for a mortgage, even though in theory I should receive 40k which would act as my deposit.... I need a 60000 mortgage.

Today when the broker took down my earnings (13086 pa), and other basics like dependants etc. They said even the most generous wouldn't lend to me, (broker - London and country recommended by Martin Lewis -whole of the market), but some details they don't have access to, so I did my own online calculator ..And refused again.

I asked broker to then apply as if no dependants living at the address, and it then altered to 55k to 60k, but said there are further checks then like credit scoring etc, so absolutely no guarantee. I could do that way, but messy as when they do statements and stuff they would see child benefit receipt and question why applied on basis as no children living with me.

i have done a benefits calculator and it seems because I am considered lowish income (with two children) then I am provisionally entitled to 470pm tax credits, and 120 working tax credits (hope this is true, done it a few times now and comes back same) I phoned up Inland Revenue and they referred me to the online calculator, they wouldn't give me an estimate. I can't work anymore hours than I do, as I have to take time off in the school holidays as I have no childcare help or family. I work term time only.

getting a 60k mortgage is more than half the monthly costs of renting. Plus this deposit I don't want to fritter away, as its to set us up somewhere permanent, it's an asset for me and my children.

i am unable to put the benefits down as 'income' figures in my mortgage application until I'm actually receiving them (and that's if I definitely am entitled to them)

when I rang IR they said even though separated I could actually claim them now, but if a few months down line and still living together, then I could be in trouble for a false declaration, but then I can't predict how long it will take for the house to sell.

the broker said it might be worth me renting to show like a track record of receiving these extra incomes. But When I look at renting, it's extortionate, like 600+ And hardly anything round where I live . Not even seen one that is furnished, which would soften the blow of hassle. I am trying now to see if I would be entitled to housing benefit as that would also soften the blow.... And would help me with rental costs, but got feeling computer says no, because they will see I have 40k, but this is my deposit money that I want to move into my own house. I don't want to be penalised for it, or will it not be taken into account. I don't think for tax credits or working tax credits they ask about savings.

Tried ringin my local housing benefit department today, waste of time, no answer, queuing etc, and same with my local CAB, their phone line was permanently engaged.

Tearing hair out with it. I can't seem to find a solution at all...and I so want to do with minimum disruption to the kids.

At work I have free legal advice for half an hour and all they kept doing was referring me to 'turn to us', which again all online calculators, I got to a certain point where I could no longer go and it kept crashing.

Any advice would be so appreciated xxxx

As pp linked the £49k will be ignored for six months sometimes longer.
"Any sum you receive from selling your previous home, which you will use to buy a new home. We can ignore it for longer if it is reasonable to do so. If you or your partner are 60 or over, we ignore this money for a year from the date you receive it."

Sorry 40k

Hi, many thanks for some of the really helpful advice.

I feel a bit better. some people have misunderstood my query over housing benefit. I don't feel entitled to it, and I'm not a SCrounger, I've never claimed in my life. I previously worked full time until children came along, and my mother helped me with juggling work and childcare. Husband works longer hours. I work 4 days a week - term time only, I chose to do this when my mum died because of my eldest son. He is SLD at school and is currently being assessed. he absolutely loves me being off with him, and makes him feel safe and happy, as he has serious anxiety issues. so just explaining that to someone who suggested I earn more money.

So if I am not yet eligible for a mortgage until I can show I am receiving tax credits, I just would prefer the money made on the sale of my property to be injected into my own house for my children and I, so I was just asking! If I do end up renting I don't want to do for long at all, but will probably be tied in. I don't know much about renting, and I just didn't want to uproot the children too much by moving them to rent, to then few months later another place.

MY next step is to apply for tax credits, my husband and I are living very separate lives... I just can't wait to be out of this bloody mess. But even claiming that scares me as you read such horror stories.

The 50/50 agreement I think is fair. my husband is going to continue paying after school club which is 90 quid a month, and he will pay maintenance when we split. he also will be having the children a lot, and he will be constantly paying for clothes and stuff. if he doesn't then I will work that out. we haven't even discussed divorce yet, taking one step at a time.

Someone also said about moving in with one of my parents.

my father and sister Have turned their back on me, because of our separation. very bigoted unfortunately, they don't understand what things have been like for me at home, although trying to keep amicable, so I don't have a good particularly good relationship with them. I do hope it works out and I can show them they shouldn't of had such little faith.

.stsrting to bore me' many thanks for this, it does make sense. And 'now it's seven' thanks for your advice too about the housing benefit. I did read that information too today.

thanks afaun

I was in almost exactly the same position as you until January. Feel free to pm me if you want a holding hand.

1. You should speak to a divorce lawyer. They will proably advise that you don't move as you earn less you may be entitled to 100% of the house/equity whilst your husband pays support even if he has to move into a bed sit.
2. If you don't do the above do you have a relative (but not your father or sister) who could guarantee your £60k mortgage for you? I know it is a big thing to ask but most parents (and some siblings) would do it if asked as it is not a massive sum.
3. Do be aware that your agreements are not legally binding with your husband and that if you divorce the finances are only formally settled in English law when you and he have a court sealed "consent order" on the finances.

Why can't people rtft! The op doesn't have 40k but she will when she sells!!!!

So in the meantime she can claim benefits.

Op I believe there are mortgages lenders who will take benefits and maintenance into account when totting up your income.

Ring London & Country because they know everything there is to know about the various requirements of the various mortgage lenders. You can get there number from Google, they're a national company

You need to walk away with more than 50:50. You will probably find that your ex is still better off. I left the marriage with 100% home equity. 2 years down the line and I am still paying the mortgage and ExH is looking to buy a flat outright. Had I left with 50:50 I wouldn't be able to afford a home at all. 50:50 is not a fair split at all. Fair very rarely means equal.

The proceeds from selling a house can be disregarded for 26weeks from the date they are received for hb purposes. If you rent before the house is sold you will need to declare the house and state that's it's part of divorce proceedings in order for your share of the house to be disregarded before its sold

being amicable is keeping the children happy, there is no way I would ever want to send my kids father to a bedsit, because of English Law. MAybe 60/40, and we have agreed if we get the asking price for our home then, he is going to give me more, I have been with him 20 years, and he is a man of his word. but I couldn't and won't be taking more, because I know if I can get the mortgage amount I need I will be comfortable and contented.my main problem is my eligibility for a mortgage, because I am not in position of any other income yet... But I will be eventually.

I hope he is a good man, a man of his word, and a man who seeks equality for you both.
You're getting 50% of his pension, yes?
I'm sure you are as you're both so keen to divide equally.
In which case, would you consider taking less pension share and a higher house equity share?

You do need legal advice and I think you need to accept that because you are housing the DC on a lower income that a 50:50 split may not be the fairest solution.

It could be that you get spousal maintenance until you are able to increase your earnings to manage on your own - that can then continue until your DC are much older etc and enable you to afford a larger mortgage. Also that you have more than 50% of the equity.

Absolutely yes phone up and start claiming tax credits now as you are entitled to. Provided you do no washing/cooking/shopping/cleaning for each other/have separate bank accounts they cannot deny you this although they may make out that you can't. Both of you paying into the mortgage/utility bills is not shared finances - that is the same as any house share arrangement.

Shared ownership may be an option for you - so you part buy part rent a property. Get your name down on the housing list with the council now, they then should you refer you on to go for DIY shared ownership or any other local schemes that are similar.

You can't get help to buy on a 2nd mortgage. It's for first mortgage only
You can't get HB with savings over £16 or named on a mortgage.

I feel for you it's horrible.

£16k