Getting a mortgage/claiming benefits as a single parent

[ContemplationStage]

I’m in the process of trying to get my ducks in a row to leave my relationship (not married, 2 very small DC). Would appreciate advice from people with experience of similar or anyone with a background in mortgage advice/broker just so I have more idea. I haven’t yet ended the relationship. I’m looking at applying for a mortgage in principle so I can decide my next move with my working hours so I can make a swift exit when the time comes.

Currently work part time and earn approx 29,500K before tax at part time hours. Currently own property that we live in as tenants in common - DP put down 2/3 of the deposit on the house and I put down 1/3. If we split, the house would have to be sold unless he bought me out (unlikely) so assuming it’ll be sold. would have whatever equity back from the sale to put towards my next property.

ive been on a benefits calculator online and seems like I’d be entitled to claim universal credit, child tax credit and child benefit as a single parent - however this was while my savings are tied up in the house. I’m assuming I wouldn’t be able to claim benefits after the house is sold as I would have too much in savings?

would a mortgage application take account of income from benefits and child support if paid? Can I even claim benefits if I have savings? And in which order should
i sort all this out - benefits application then mortgage in principle, or mortgage in principle then benefits application?
apologies if this seems jumbled, it’s all new to me.

It would be just Universal credit and child benefit. The Universal credit has a child element. Some mortgage brokers will consider benefits and child maintenance payments but I guess benefits are not guaranteed. If you still have equity of more than 16k in a property that you don't live in then it can be disregarded for six months as long as attempts being made to sell it.

It is not the broker who considers if they will accept benefits it is the lender.

OP speak to a fee free broker. They are all the same, so no point paying a fee when you don’t have to. Specialist lenders will often accept benefits. A agreement in principle will go through all of that with you, but you need to know how much you can claim first and start claiming it as for a mortgage app you need to prove income

I was able to get a solo mortgage with NatWest which took into account child benefit, UC, child maintenance and my earnings. I had some equity from previous house to put down a decent deposit. Mortgage broker was brilliant at presenting my finances in the best possible light and anticipating lender's questions. I went into private rented until I was in a position to buy and UC helped with my rent. I put the equity from house sale into savings and UC disregarded it for 6 months as it was being used to buy a new property. I had to keep some money back for essential repairs on my fixer-upper house but they have indicated they will disregard this too if it is for this purpose.

You need to get your UC application in first as this can take a while, you'll need to go to a meeting, send in paperwork etc. Applying for child benefit in your name is easier, you can do it online. Then when you know how much you're getting, you can have a free consultation with a mortgage broker to get a sense of how much you could borrow and what you need to do to improve your finances before you apply. They usually want to see at least 3 months of whatever income you're declaring hitting your account. Use this time to clean up your bank statements, so get rid of any unnecessary direct debits/standing orders, ditch as many regular outgoings / financial commitments as you can so you look to have more disposable income each month. Check your credit file and make sure no nasties on there. Pay off any debt. Reduce childcare costs as much as possible. Hope this helps.

Apologies. I meant to say lender.

Thank you all, very helpful.
@sallyanne33 thanks so much for this, just wondering - can I apply for benefits while still cohabiting with my ex as if I was living alone? I was hoping to skip private rent altogether but if not possible I’ll look at this.

Yes it is possible to cohabit and still claim benefits. You'll have to ensure you totally separate your finances, bank accounts etc. You have to obv sleep in separate rooms, eat and socialise separately. You may even need to get a 'separation order' to legally prove your intentions, if you're married.
UC will disregard proceeds of the sale if your intention is to buy another home. You'll be on a 'review period'. Mortgage providers will take into account some benefits alongside your earnings.
It's all very doable OP. I've been there, got the t-shirt.
Get your ducks in a row, wheels in motion.
Good luck!