# Buying a home when on social welfare



## sunny123 (23 Jun 2011)

I am wondering if it would be possible to get a mortgage when both i and my partner are on social welfare? We would be looking for 35,000. We both get 184 per week and have 10000 in savings.


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## wbbs (23 Jun 2011)

No, it is extremely unlikely, in fact I would say impossible.  Banks will not normally take into account an income from social welfare other than perhaps pension, that was back in the old days, probably wont even take that now.   Reason we always told was that if bank had to go to court over non payment the judge was highly likely to ask what the hell were we doing giving a mortgage to social welfare recipients as that income is meant to be the bare minimum to live and certainly not sufficient to pay a mortgage.

Having said all that perhaps a credit union, but again I feel it unlikely and wouldnt advise it anyway on that small an income.


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## goingforgold (24 Jun 2011)

Have you sourced a property for 45K? Remember there are legal fees, engineer, stamp duty etc also.


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## RMCF (24 Jun 2011)

sunny123 said:


> I am wondering if it would be possible to get a mortgage when both i and my partner are on social welfare? We would be looking for *35,000*. We both get 184 per week and have 10000 in savings.


 

Have prices dropped that much !!!


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## oldnick (24 Jun 2011)

At first I thought this was a crazy question but they're already netting nearly 20k p.a. and are seeking  less than twice that amount.
Maybe could claim for mortgage interest relief, child benefit when applicable and all sorts of other goodies...
Get a tax-free lodger on rent-a-room scheme and they're laughing.

I assume this is a tiny cottage  in leitrim?


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## sunny123 (25 Jun 2011)

Thanks it is 45k and a tiny 2 bedroom cottage. Seeing as we have 2 children we wouldn't be able to rent out a room. We do get child benifit which is 280 a month.


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## carriedaway (25 Jun 2011)

Surely you qualify for rent allowance in that situation, that would be better than buying even if you could manage the repayments? Then get a mortgage when you get back to work.


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## sunny123 (7 Jul 2011)

we came across this house and thought it would be better to buy than to give money to a landlord and see nothing at the end of it. But seems very unlikely that we would be able to get a mortgage. Thanks for all the replies


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## csirl (11 Jul 2011)

This would be one of the infamous NINJA mortgages - so doubtful would be approved.


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## terrysgirl33 (11 Jul 2011)

While it seems that you could afford to buy the house (leaving aside the problem of getting a mortgage), how much work does the cottage need?  If your boiler blows up, can you afford to fix it?  If it's in the middle of the winter with two small kids, can you afford not to fix it?  What if the roof needs replacing, or some other major fault?

The advantage of renting is that someone else is responsible for the maintainence of the house (this can be minor, but major stuff does crop up from time to time).  The landlord is also the one taking a chance on negative equity and being able to pay the mortgage.  Also, if your circumstances change, you have another child or one of the family needs an adapted house, you just move, you don't have to sell.

Best of luck whatever you do.


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## jpd (11 Jul 2011)

Am I missing something here?

Was the original question asking whether the taxpayers would fund the purchase of a property for themselves and their two children?

I agree that those in need, should be helped but surely not at the expense of providing them with a valuable asset? Would it not make more sense for the taxpayers to buy the property and let them live in it rent-free?


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## dereko1969 (11 Jul 2011)

jpd said:


> Am I missing something here?
> 
> Was the original question asking whether the taxpayers would fund the purchase of a property for themselves and their two children?
> 
> I agree that those in need, should be helped but surely not at the expense of providing them with a valuable asset? Would it not make more sense for the taxpayers to buy the property and let them live in it rent-free?


 
yes you are missing something. the question wasn't about taxpayers funding the purchase it was about people who happen to be on social welfare at the moment being in a position to obtain a mortgage, the answer to that is no.


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## Slim (11 Jul 2011)

jpd said:


> Am I missing something here?
> 
> Was the original question asking whether the taxpayers would fund the purchase of a property for themselves and their two children?
> 
> I agree that those in need, should be helped but surely not at the expense of providing them with a valuable asset? Would it not make more sense for the taxpayers to buy the property and let them live in it rent-free?


 
I think 'fair play to them'. Not many on SW would think of putting part of it aside to pay a mortgage and house themselves, foregoing Rent Allowance too. Slim


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## oldnick (11 Jul 2011)

dereko has a point -  it is taxpayers who are fuunding the purchase but taxpayers are also funding those on the dole to buy beer, smoke fags and do nothing all day. Having worked for thirty years in the poorest parts of Dublin I've seen what people do with their dole money plus all the other goodies the taxpayers funds.

At least this couple will use the money for a good purpose and doubtless(hopefully) spend time and energy improving the cottage rather than down at the bookie.


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## sunny123 (17 Jul 2011)

jpd said:


> Am I missing something here?
> 
> Was the original question asking whether the taxpayers would fund the purchase of a property for themselves and their two children?
> 
> I agree that those in need, should be helped but surely not at the expense of providing them with a valuable asset? Would it not make more sense for the taxpayers to buy the property and let them live in it rent-free?



I don't plan on being on social welfare forever but due to circumstances being what they are at the moment i am left with little choice. I have worked most of my life and so have been a tax payer until recently. 
I agree that having a home rent free would be a good solution to allow people to get back on there feet and find work but this isn't going to happen any time soon. 
This house has only become available recently and it seemed to me to be opportunity for us. I would also like to point out that if we already had a home and found ourselves on social welfare we would still be required to pay our mortgage. a situation that many are now in. And surely the tax payer is also providing these people with a valuable asset?


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## Kiwi391 (20 Jul 2011)

did you try for a loan with your local housing authority, i no in dublin the city council gives out morgages but you need 2 refusals from banks.


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## donee (20 Jul 2011)

if you manage to get the loan will you tell US the secret....................


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