Single parent. Mortgage and universal credit

[eve34]

A year on from separating from the children's father. And I have decided I need to look into sorting the mortgage.

I am fortunate to have a property worth £260k. Roughly. And need a mortgage of £110k.

I work part time. Earning £20k
Maintenance of £7500
Cb/ dla/uc £13k

I do realise it is a risk. But it appears that being on uc and not wtc means I can only get a mortgage of £85k.

So if I can't get the mortgage in my own name. I will have to sell the house and rent. And live off the money from the sale of the property.

I can afford my commitment on my wages solely. Although it is very tight.

It doesn't seem right. Feeling very worried now.

You might get a response on 'money matters'.

Your best bet is to talk to a broker.

Talk to "which?" Mortgages - impartial free advice

Thank you.

What makes you think you can’t get a mortgage on Universal Credit? Halifax, for example will take this into affordability, they’d take this along with your salary, cb and maintenance (don’t think they’d use DLA). They are calculators on their website that you could take a look at.

I did an on line calculator to get rough idea. But clearly need a broker to look at specific deals. Just hoped it be simple.

I work in a mortgage brokers (although not an adviser) and the amount of options is overwhelming to most people so you’re certainly not alone! I can PM you a name for someone to talk to if that helps but they do charge, L&C are free and I hear good things about them

@SarcasticMrKnowItAll Thank you. Any information would be helpful. I did the online calculator with L & C. But I realise that speaking to someone would give me more personalised assessment.

I was in a similar situation. Took advice from a friend who said to try Barclays as they are more benefits friendly when applying for a mortgage and he was right! Maybe give them a call x

I’ve messaged you x

Can you ask friends to recommend a local financial advisor?

could you downsize? A smaller mortgage would make things a little bit less tight? Not ideal I know but I don't think you get much/any housing allowance for a mortgage. A smaller mortgage might at least mean you wouldn't have to rent and lose all of the equity you've built up in your home.

@shiningstar2 it is something I have tentatively looked at. It would mean a move from where we are. And would be a two bed. With 12 year old boy and six year old girl. Means I would need sofa bed. Which I am happy to do if necessary.

No there is no support for mortgage payments. And I am not expecting there to be. I can manage and have done for the past 18 months. 12 of which I had no child support.

Hopefully there is a lender out there who will be able to help.

Thank you @SarcasticMrKnowItAll

I am also in similar situation although have less money. I was told that if they were still doing tax credits I would have got a small mortgage but because it is UC i wont. (Which i have not applied for yet, being stuck in never never land with stbex in the house we both own). He however could move now but refusing.