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Will help to take on a mortgage improve your life?

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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.

 

 You can read more about the government’s mortgage plans in their press release.

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  • Thank you for your comment. Comments are moderated before being published.
    Anntoinette
    Anntoinette · 1 years ago
    To be honest I have seen my elderly mum in law since she has become a widow (she owns her home) worry herself sick because of things that have had to be replaced and there cost. She only has her pension and pension credit. After trying to help her and trying to stop her worrying, on top of the fact that she wants to leave the house to her family so worrying about if she ends up in a home. I would never buy my own home, personally from what I have seen they are just a money pit that costs long after the mortgage has been paid. And in my latter years I don't want the worry it seems to bring. 
  • Thank you for your comment. Comments are moderated before being published.
    Gillian
    Gillian · 1 years ago
    The burden will add to the stress when people have to maintain and repair their home rather than the landlord 
  • Thank you for your comment. Comments are moderated before being published.
    Dee
    Dee · 1 years ago
    My concern is simply converting rent money to a mortgage may be great. But then who pays for repairs and upkeep? I think we will see an increase in repossessions. I'm also curious how mortgages would be paid when dwp choose to sanction someone. Sounds very very iffy to me. It won't make any difference to me as on a low income I couldn't saddle myself with a mortgage. What I think would have been more helpful was a rebuild scheme in conjunction with this for affordable housing. Maybe even a tiny house scheme? 
  • Thank you for your comment. Comments are moderated before being published.
    Shelli
    Shelli · 1 years ago
    so first of all any one on uc or esa struggle to live on their money. in buying a house there is a lot more to it than just paying the rent. what if the roof leaks, the boiler breaks down, the stairs pull away from the wall, or the dreaded damp or mould appear... they need money for all of that , where will they get it from, they cant afford to live so why are they buying a house. they need a big lump sum to put down a deposit on said house, again where's that coming from. i just cannot see it happening.  believe me i would love to own my own home, but the thought of all the things that could go wrong really put me off. anyway if your one thats going to do this then i wish you all the best in luck on it
  • Thank you for your comment. Comments are moderated before being published.
    Antony
    Antony · 1 years ago
    The Idea of allowing UC claimants In work, and claimants with over £16000 keep their savings as long thay are put Into a lifetime ISA Is ridiculous.

    The number of people from households wih one person In work who are living In relative poverty Is 57%, and those living In poverty without work Is higher still.

    The reason the government wants to Introduce this policy Is to make people Indebted serfs to the banks, and when the next recession strikes to repossess as many properties as possible to sell at auction as cheaply as possible to but to let landlords and property developers.

    It's also to reduce the remaining number of socially rented properties which Is good for the governments balance sheets, and of course will exacerbate the countries chronic housing crisis.
    • Thank you for your comment. Comments are moderated before being published.
      Pete
      Pete · 1 years ago
      @Antony "The Idea of allowing UC claimants In work, and claimants with over £16000 keep their savings as long thay are put Into a lifetime ISA Is ridiculous."

      Quite the opposite! The Lifetime ISA was meant to people not to put money in pensions, which receive the same relief and unlike the LISA aren't capital and therefore are protected from DWP capital rules. 

      Tariff income is a perverse concept, it discourages people from saving and rewards those with equity, even those in multimillion pound houses. The route out of poverty is not by remaining poor so discouraging people from saving is a terrible idea. To be honest, it's long overdue that capital thresholds be increased. The last time that happened was something like 15 or so years ago. How can anyone be against this particular part of the plan? 
  • Thank you for your comment. Comments are moderated before being published.
    Ruan Janes
    Ruan Janes · 1 years ago
    Under the plan, because am long term ill and disabled wouldn’t qualify but I do believe this is a cost cutting exercise if they predict housing benefit to reach £50B by 2030, spiral rents in the private sector  and if your not getting the chance to buy a home by the time of retirement it’s just a waiting time bomb , however my rent is a social rent but a mortgage would be even less ,but unless it’s opened up to long term sick claimants not just for the working on state benefit's. 
  • Thank you for your comment. Comments are moderated before being published.
    John Watson
    John Watson · 1 years ago
    It’s not good relying on the DWP or the government you may well lose your property 
  • Thank you for your comment. Comments are moderated before being published.
    MM, South Coast
    MM, South Coast · 1 years ago
    Whilst in principle the RTB scheme may appear a good idea, I worry about the ongoing costs of maintenance and upkeep, furthermore, the unscrupulous among us that will end up obtaining some properties purely for profit using nefarious means by targeting the vulnerable - and where is any protection/safeguards around this?  Personally I would go down the part own/part rent route with much tougher regulation/protection banning any existing home owner from having any stake in the property (eg adult children) or it being used for any other purpose than as a main residence.  Living in an area where we have seen a vast reduction in private rental accommodation due to second homes and air bnb's, there has to be more joined up thinking taking account of local demographics and need.  At a national level this should be regulated by law and at a local level restrictions on the amount of property that can be used in this way should be introduced.  This could have a large impact in a fraction of the time it would take to build the stock required for the RTB scheme to be successful.
    • Thank you for your comment. Comments are moderated before being published.
      Pete
      Pete · 1 years ago
      @MM, South Coast The 'part own/part rent' route you speak of is already in place but is very hard to access for people on benefits as lenders won't lend to people on benefits. Again this prevents people from becoming upwardly mobile. It could be argued the banks are discriminating on the basis of disability, sickness and that's completely wrong. It's against the Equality Act and needs to stop. 
  • Thank you for your comment. Comments are moderated before being published.
    Lissie
    Lissie · 1 years ago
    I wouldn't personally take this up, owning my own house and dealing with the massive costs if the roof goes or the boiler, or foundations, or a tree spreads too far in the garden. It is too much uncertainty. There's no way I could afford the upkeep and live a life. Plus disabled housing is so, so dire that I would feel awful taking a social housing house. So many more need to be built not taken away. I've been on the list to get an accessible house for almost 2 years. How much worse will it get if they're all sold off? 
    • Thank you for your comment. Comments are moderated before being published.
      Pete
      Pete · 1 years ago
      @Lissie I can understand people being concerned but just pay for a good survey before you buy to put your mind at rest. 

      If you're on DLA/PIP then as a home owner the government will pay for a new boiler. Problem solved, at least as long as that scheme remains in place.
  • Thank you for your comment. Comments are moderated before being published.
    Fred
    Fred · 1 years ago
    What happens if you earn a bit more and lose your entitlement to housing benefit ?
    A mortgage is a big commitment and with interest rates and general costs on the rise can people on a low income sustain payments ?
    Will there be a cap on payments made towards a mortgage ?
    • Thank you for your comment. Comments are moderated before being published.
      Pete
      Pete · 1 years ago
      @Fred Yeah and that's part of the problem, house prices are too high and interest rates may rise. The Right to Buy is one way around this as would be the idea to offer more favourable Help to Buy terms to council tenants. 

      There was until recently quite a bit of regional variation in house prices, sadly covid has changed that somewhat which is a shame. A few years back, with a decent deposit you could have locked in a ~2% interest rate for 10 years and with lower purchase price too.
  • Thank you for your comment. Comments are moderated before being published.
    AliE
    AliE · 1 years ago
    I can't believe anyone is fooled by this( another 3 word slogan) designed to bring working class people back into line.
    I doubt with the benefit cap here( 75 a week HB) that would be affordable. 
    How will they replace the lost housing stock?
    I think if you can get a mortgage like this, they should be offering an alternative affordable stock other than HA property,  which, by the way, aren't theirs to sell.
    Adjust the private renting rules so we have rentals for life that are affordable.  
    • Thank you for your comment. Comments are moderated before being published.
      Pete
      Pete · 1 years ago
      @AliE I agree that the government shouldn't think they can boss housing associations around but I would remind people that housing associations get funding from the government and a lot of former council housing stock was sold off to them at knock down prices.
  • Thank you for your comment. Comments are moderated before being published.
    Lucia Donnelly
    Lucia Donnelly · 1 years ago
    There are very little houses available for those who rent, at this rate there will be no social housing left and the homeless situation will increase dramatically, also we’ve seen how peoples help can be removed without warning, to give someone a mortgage the they end up losing their help could push people over the edge of not to suicide, I think this is a crazy move 
  • Thank you for your comment. Comments are moderated before being published.
    Dotsx
    Dotsx · 1 years ago
    Yes! I've been a HA tenant of the same landlord for 14 years. I was rehoused into my current property as I was struggling with the stairs. I had a disabled wet room, the new property did not, and I've been waiting a year and 6 months managing with the sink. I was told I'd only be offered one property and if I didn't take it I'd have to stay where I was. I am not a problem tenant and kept to myself. I'd lived there 12 years and was quite well known and loved the area, I had my own back garden so when I was too poorly to leave the house I could still sit out. I was rehoused miles away to another borough where it's quite rural, according to google it's a 40 minute walk to the nearest shop, but for me it takes much longer as I suffer from mobility problems and because it's a small Co Op very often it doesn't have a lot left, so then it's a 5 mile walk to Lidl. I am a single person so ordering groceries online is not cost effective and I end up with food I will never eat. I don't speak to another living human face to face for several weeks at a time, I can't even get another assistance dog as I no longer have my own garden. My landlord asked me what I would like and I told them, they have plenty of properties in that area but instead I'm isolated and trapped here. With this option of a mortgage I would be able to move somewhere more suited to me in an area I need to be in. My life has been destroyed and there's no way out. 
  • Thank you for your comment. Comments are moderated before being published.
    Angie
    Angie · 1 years ago
    Getting a housing association property in this area involves a minimum 10 year wait even for priority applicants so that avenue isn’t feasible, but neither is buying a property in the open market as even a 5% deposit is beyond the means of anyone entitled to housing benefit.
  • Thank you for your comment. Comments are moderated before being published.
    Delta
    Delta · 1 years ago
    I like the idea of having my own home that I can live in how I want to without the fear of losing it. 
  • Thank you for your comment. Comments are moderated before being published.
    Linda Murray
    Linda Murray · 1 years ago
    Better using money towards your own house, than paying over priced / extortionate rent to landlords.
    Very few people can pay rent and save up to buy their own house.
  • Thank you for your comment. Comments are moderated before being published.
    P Harrold
    P Harrold · 1 years ago
    Anything to get on the property ladder has to be good 
  • Thank you for your comment. Comments are moderated before being published.
    Alison St Helene
    Alison St Helene · 1 years ago
    Selling off social housing is not the answer to the housing situation.
  • Thank you for your comment. Comments are moderated before being published.
    SaVi
    SaVi · 1 years ago
    I explored the idea of buying a property as a benefit claimant and came to the realization that I would not be able to afford it despite having then found an suitable property.  Hence I have moved into a housing association property and all I see are workmen busy on the property with repairs.  So owning a property in this complex would become expensive because maintenance on older properties is not cheap.  Combined with a mortage = diminishing return.
  • Thank you for your comment. Comments are moderated before being published.
    Michael Clinton
    Michael Clinton · 1 years ago
    I will have the freedom to determine which adaptations I can make to a house I own that would better suite my disabilities rather than being told what I need 

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