How does the new scheme on buying a house on benefits work?

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Kutie Karen
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#1
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How does the new scheme on buying a house on benefits work? Boris announce this yesterday but i don't get it.
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martin7
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(Original post by Kutie Karen)
How does the new scheme on buying a house on benefits work? Boris announce this yesterday but i don't get it.
The policy has only just been announced. It's very unlikely anyone has thought through all the details at this point.
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Kutie Karen
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Any idea how long it will take to kick in?
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Jack22031994
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Personally, i can not see many lenders getting on board with this
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londonmyst
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The full details are yet to be announced.
Knowing this mostly soaking wet government and its gross inefficiency, I doubt that the scheme will work.

Very few banks and other experienced bona fide finance providers will be willing to offer such high value loans to long term low income or unemployed welfare dependent individuals without receiving government guarantees to cover the bulk of the capital sum.
Even with such state guarantees provided, I'm getting strong vibes of limited legitimate takeup levels by low income council tenants who try to live within their means and mass fraud or scam attempts by criminal elements.
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Kutie Karen
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(Original post by Jack22031994)
Personally, i can not see many lenders getting on board with this
I am guessign that the government would somehow make it work to win votes in the red wall areas especially.
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londonmyst
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(Original post by Kutie Karen)
I am guessign that the government would somehow make it work to win votes in the red wall areas especially.
Then you have a lot of faith in the current government.
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Kutie Karen
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(Original post by londonmyst)
Then you have a lot of faith in the current government.
I think they will somehow make it work for winning votes. Everyone wants to own a house so that is what they will push for
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londonmyst
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(Original post by Kutie Karen)
I think they will somehow make it work for winning votes. Everyone wants to own a house so that is what they will push for
Not everyone wants to own a house or any property.
Many uk citizens know that they will be renting for life and are happy with this.
They only want to be able to find a reasonably priced rental property in good condition that does not eat up the majority of their annual income and is located within a quiet & safe neighbourhood that they know well.
Last edited by londonmyst; 1 month ago
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Quady
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(Original post by Kutie Karen)
How does the new scheme on buying a house on benefits work? Boris announce this yesterday but i don't get it.
Eligible people just buy the house, some will need a mortgage if they don't have the money in cash savings.
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Kutie Karen
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Aren't benefits to help because you are not able to manage on your own? Owning a house comes with so much costs. eg maintenance, removing costs, solictors.
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Wired_1800
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(Original post by Kutie Karen)
Aren't benefits to help because you are not able to manage on your own? Owning a house comes with so much costs. eg maintenance, removing costs, solictors.
Some people are being overly negative of the scheme. The major issue is the current deposit requirement but there is speculation that the Government could waive the deposit requirement by guaranteeing the deposit for those buyers with a repayment plan.

The plan, apparently, would be for those on benefits to request to purchase the property that they are currently living in and then use their benefit rent payments to repay the mortgage. That way, their rent payments are counted towards the mortgage repayments.

To me, I think it sounds like a good scheme if the issue of deposit can be resolved and the Government can get the bankers or lenders to support those communities.
Last edited by Wired_1800; 1 month ago
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Kutie Karen
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(Original post by Wired_1800)
Some people are being overly negative of the scheme. The major issue is the current deposit requirement but there is speculation that the Government could waive the deposit requirement by guaranteeing the deposit for those buyers with a repayment plan.

The plan, apparently, would be for those on benefits to request to purchase the property that they are currently living in and then use their benefit rent payments to repay the mortgage. That way, their rent payments are counted towards the mortgage repayments.

To me, I think it sounds like a good scheme if the issue of deposit can be resolved and the Government can get the bankers or lenders to support those communities.
oh I see. They have to buy the house they currently live in. Therefore, no removal costs. Who pays all the other costs?
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londonmyst
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(Original post by Kutie Karen)
Aren't benefits to help because you are not able to manage on your own?
Owning a house comes with so much costs. eg maintenance, removing costs, solictors.
Yes.

The scheme has the potential to be a enormous example of failure and gross economic inefficiency if it goes ahead within England and is able to find property finance partners amongst the building societies, banks & other non-status mortgage providers.
Wasting a huge amount of time and taxpayer money.
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Kutie Karen
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I can see that people would want to own their own home but I can't understand the practical side of this idea. Benefits are for those struggling to manage on their own. so for example if the boiler breaks down, who will pay to fix it as it so so costly and they won't have the money and can't call the council anymore. I don't see how it would work without throwing so much money at it.
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Wired_1800
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(Original post by Kutie Karen)
oh I see. They have to buy the house they currently live in. Therefore, no removal costs. Who pays all the other costs?
Those have not been ironed out yet.
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Kutie Karen
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(Original post by Wired_1800)Those have not been ironed out yet.

It is either the council /taxpayer or the new homeowner. Neither can afford it.
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Wired_1800
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(Original post by Kutie Karen)
I can see that people would want to own their own home but I can't understand the practical side of this idea. Benefits are for those struggling to manage on their own. so for example if the boiler breaks down, who will pay to fix it as it so so costly and they won't have the money and can't call the council anymore. I don't see how it would work without throwing so much money at it.
The big issue with some people with poverty is their inability to get on the property ladder and have stability. Having their own home could help them in the journey out of their situation. It is ridiculous to pay £500 per month to a landlord when you can pay the same to repay your mortgage and own the house in the end.
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Wired_1800
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(Original post by Kutie Karen)
(Original post by Wired_1800)Those have not been ironed out yet.

It is either the council /taxpayer or the new homeowner. Neither can afford it.
The big problem is who currently takes care of repays for benefit claimants.
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Kutie Karen
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(Original post by Wired_1800)
The big issue with some people with poverty is their inability to get on the property ladder and have stability. Having their own home could help them in the journey out of their situation. It is ridiculous to pay £500 per month to a landlord when you can pay the same to repay your mortgage and own the house in the end.
The principal idea is of course good. I think the reality of the cost of owning your home is massive and don't know how this will be funded. You can't have it both ways.
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