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Will housing benefit affect future mortgage application

1 reply

EthelTheGoose · 23/05/2024 21:37

Hi,

I'm currently waiting for a transfer of equity on the house I share with my ex-partner. He is buying me out as I cannot take on the mortgage here alone.

My options are either rent somewhere or look for a house to buy, and my intention was to rent for 6 months whilst I look around. Due to childcare restraints, I earn a low income, and I would be eligible for housing benefits.

I have recently spoken to a mortgage advisor, who said that the majority of lenders look unfavourably at applicants who have used housing benefits to help toward their rent, and it would really impact my chances of getting a mortgage approved. It was implied that they would expect me to show I could pay the rent without assistance for 6/12months before I could get a mortgage.

Does anyone know whether this is accurate advice? Or has anyone been in a similar situation and been able to get a mortgage?

I don't want to be rushed into finding a suitable house to buy but I also don't want to ruin my chances!

OP posts:
mitogoshi · 23/05/2024 21:49

They will look at affordability for you, so as you don't get housing benefits for mortgages, they can only take into account what you were paying in rent yourself

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