Any hope of getting a mortgage on Universal Credit?

[HouseNoMore]

After scrimping and saving for years, living with family and working myself into the ground working full time and being a single mum to 3 very young kids, just as I'm finally putting an offer on my first house I get hit by the UC migration letter

My lender has said that they don't accept UC, and I'm struggling to find another who will lend anywhere close to the same amount my last AIP was

Is there any hope? The irony that if I can't get a house I'll end up renting which will come out of UC's pocket anyway

Frustrated Mama

You should be eligible to claim contributions based job seekers allowance which is about £80 per week for a single person if you are not working. Possibly more if you have a child. I believe that it is not means tested.

Apply www.gov.uk under universal credit

Your National Insurance "stamp" will be paid too when you are not working

I believe if they don't pay you any money, you can still claim the National Insurance credits

Claims are not back dated, so claim ASAP

Good luck

https://www.gov.uk/search/all

Correct link

https://www.gov.uk/jobseekers-allowance

Not sure if this is helpful op as its different to your circumstances but I got a mortgage with nationwide when I was receiving tax credits as well as working and getting child support from my exh, I had equity in the home I already owned but needed to move and increase my mortgage amount. Nationwide were the only ones that would offer me a mortgage.

Speak to a good broker OP, they ill be able to help you.

And ignore all the goady posts on this thread!

UPDATE: just incase anyone else searches for this out of worry

Recap: Im a single mum of 3, multiples so all eligible for tax credits/UC. I work full time and earn £30k, and the TC help has been a godsend for helping with childcare costs. Migration letter says I need to move to UC by January. I'll be worse off on UC but just grateful to have help with childcare until they start school and I'll manage

Mortgage AIP on tax credits was £150k but that particular lender refused to use UC in calculations, so couldn't get me a new AIP (because even though childcare costs are largely covered by UC, they refused to accept the income but still accepted the outgoings - ridiculous)

Barclays came to the rescue and I got a new AIP for slightly less but still enough. L&C also gave me an AIP for almost the original amount, but the lenders they work with wouldn't when I applied directly so I'm not sure how much I trust that AIP! Would hate to get all the way to mortgage application stage and find out the amount had dropped drastically

So there is hope!

Glad to hear this, Brokers can work magic sometimes so although I wouldn't recommend the one you mention i would also trust them unless they give you reason not to otherwise

but the lenders they work with wouldn't when I applied directly so I'm not sure how much I trust that AIP

You need to ask the mortgage broker to get you a decision (/agreement) in principle directly from the lender for you. This is the most certain you can be that they will lend you the full amount on the piece of paper the lender produces. What brokers produce themselves are never near anything like accurate. It has to be from the bank.

What a bank says it will lend you online on their own website and what a broker can get you via the same bank also varies massively. I plugged the numbers into NatWest today out of curiousity, they said they will lend us 29% LESS than I know the broker has already told us he can get for us from the same bank!! This broker has already input all our financial information in full, he knows what lenders will lend us. They (the banks) just don't publicly advertise these things, you see.

You shouldn't worse of as you will get transional protection and UC pays 15% for childcare that TC. Also you will get a higher work allowance once you stop renting.,

But they're happy to pay off someone else's mortgage? Just indirectly through renters claiming. It shouldn't make a difference. She won't be in this situation forever but if she can get out of rented accommodation that's amazing. But shouldn't be punished for it.

I agree its a very frustrating and flawed system

I agree. It's maddening that benefits are enriching the landlord generation even as they sneer at the people who claim them

This is my first thought too...

Honestly I really despair at the entitlement in this country.

It also doesn't really matter because an AIP is not legally binding. The financial institution has no obligation to honour it. I got a lot of AIPs but because the automated system doesn't include all the criteria needed for lending, I would have been rejected upon application due to immigration status.

There's also no rule saying you need to use only one broker. Many are free and even for paid ones you don't pay until they find you a deal. I sent my details to 10 different brokers and they all came back with the same two deals.

OP, you can do the same. It's always difficult if you're circumstances are not standard. In my case, I was on a work visa but married to a British citizen, he could have afforded the mortgage on his own and we were borrowing only 2x our combined income.

Still very few wanted to lend to us. But we knew that our application would succeed because all the brokers said the same thing.

The big high street lenders are usually less risk adverse and take on cases like yours

You know what I really despair @happypickle ? People who see 'universal credit' and assume that OF COURSE that means a person doesn't work. Not that a person works FULL TIME and still receives a little help through UC towards childcare

But by all means, let's not let those people buy a house. Let them continue renting, which means claiming housing allowance too, which pays off the landlord's mortgage

for the record, I earn over £40k working full time but because I was so lucky to be surprised with twins who cost me £750 a week in childcare costs, I'm also entitled to UC help with childcare. And guess what? Still entitled to a mortgage