There has been a great deal of publicity this week about the government’s plans to help claimants to take on a mortgage. However, no-one seems to have asked claimants what they think of the idea . . . so we thought we would. Please take part in the poll below.
The plans announced include:
- Extending the right to buy to 2.5 million housing association tenants.
- Turning ‘benefits to bricks’. This proposal involves changing benefits rules so that the 1.5 million people who are in work but also on housing benefit will be given the choice to use their benefit towards a mortgage, rather than automatically going directly to private landlords and housing associations.
- Changing universal credit (UC) rules so that claimants can save more than £16,000 without it affecting their UC, so long as they put it in a Lifetime ISA to go towards a deposit on a house.
- A review of the mortgage market to try and increase availability of low cost, low deposit finance such as 95% mortgages.
Secretary of State for Work and Pensions Thérèse Coffey said:
“For too many people the aspiration to own their home has been taken away. By turning benefits to bricks, we are opening the door to home ownership for those on the lowest incomes.
“By removing barriers and allowing people on benefits to save into a Lifetime ISA, they will be incentivised to put aside a deposit to buy their home.
“And we are also giving people the choice to use their benefit towards their mortgage rather than on rent that pays a buy-to-let landlord.”
Will these new ideas improve your life? Vote in our poll and leave a comment to explain why you voted the way you did.