Can You Claim Benefits As A Single Parent With A Mortgage?
By
HuutiMoney
If you are wondering whether or not you can claim benefits as a single parent with a mortgage, you will find the answer to your question in the following blog post. For a detailed overview of the topic, we will also discuss how to claim the benefits you may be eligible for; as well as explore other ways of finding help for your mortgage payments as a single parent on benefits.
Can You Claim Benefits As A Single Parent With A Mortgage?
Yes, it is possible for single parents with a mortgage in the UK to claim benefits, although eligibility will depend on individual circumstances such as:
- income,
- employment status,
- and the age of any dependent children
As a single parent, you may be eligible for a range of benefits, including:
- Child Benefit
- Child Tax Credit
- Working Tax Credit
- Universal Credit
- Housing Benefit
- Council Tax Reduction
Child Benefit is a tax-free payment made to parents or guardians of children under 16 (or under 20 if they are in approved education or training). The payment is made regardless of income and can be claimed by a single parent.
Child Tax Credit is a payment made to low-income families with children. The amount of tax credit you receive depends on your income, the number of children you have, and other factors. It is being replaced by Universal Credit.
Working Tax Credit is for low-income working families to help with the cost of childcare and other work-related expenses. It is being replaced by Universal Credit.
Universal Credit is a payment that is replacing several other benefits, including Working Tax Credit and Child Tax Credit. It is designed to support people on a low income, including single parents with a mortgage, and is calculated based on your income and other factors.
Housing Benefit intends to help with the cost of rent or mortgage payments. It is means-tested, so the amount you receive will depend on your income, the size of your family, and other factors.
Council Tax Reduction is a benefit that can help with the cost of council tax. It is means-tested, so the amount you receive will depend on your income, the size of your family, and other factors.
To determine your eligibility and to apply for benefits, you should contact the relevant government department or visit the Benefits section of the Government’s website. The website also provides online benefits calculators that can help you determine what benefits you may be eligible for based on your circumstances.
How Do You Claim Benefits As A Single Parent With A Mortgage?
To claim benefits as a single parent with a mortgage in the UK, you can follow these general steps:
- Check your eligibility: Before applying for benefits, check whether you are eligible for any of the benefits available to single parents. You can use a benefits calculator to check your eligibility.
- Gather the required documents: You will need to provide various documents to support your claim, such as proof of income, bank statements, and proof of your mortgage payments. Check the specific requirements for each benefit you are applying for.
- Apply online: Most benefits can be applied for online. You will need to create an account and fill out the relevant application form. Be sure to provide all the required information and documents to avoid any delays in processing your claim.
- Attend any appointments: Depending on the benefit you are claiming, you may be required to attend appointments, interviews or provide additional information. Make sure to attend any appointments and provide any additional information as requested.
- Wait for a decision: Once you have submitted your application, it can take several weeks for a decision to be made. If your claim is successful, you will receive a letter outlining the amount of benefits you are entitled to and how and when they will be paid.
Can You Get Help With A Mortgage If You Are A Single Parent On Benefits?
Yes, you can get help with a mortgage if you are a single parent on benefits. However, the first source of help will be the income you gain through your benefits claim. If you claim any of the following benefits, you can state the payments from them as part of your income for your mortgage claim:
- Child Benefit
- Tax Credits
- Universal Credit
This will be in addition to your earnings from a job (whether it is part-time or full-time) as well as maintenance payments from a former partner.
Then there is the Help to Buy scheme which is supported by the government to help first-time buyers get a property with a 5% deposit. You can apply for an equity loan of up to 20% (40% in London) under this scheme and use the remainder for a Help to Buy mortgage. The government loan under this scheme is interest-free for the first five years; with a 1.75% interest rate after that.
If you have a family member who can support you, you can avail of a gifted deposit where all or a part of your mortgage deposit is given to you as a gift by a family member. However, this must be a gift and not a loan; with a very clear paper trail.
Otherwise, you can ask a family member to serve as a guarantor for your mortgage. This is a loan guaranteed typically either by a parent or a close family member against security, such as savings or assets. In this case, the mortgage lender will have the guarantee that if you miss any payments, your guarantor will be legally obliged to pay on your behalf.
Another option is to opt for a shared-ownership mortgage. As the name suggests, this is a “part buy, part rent” scheme under which you can purchase a share of the property between 10%-75%.
This, in addition to a good credit history will provide you with long-term help with mortgage if you are a single parent on benefits.
Conclusion:
The above discussion helps to conclude that you can certainly claim benefits as a single parent with a mortgage; however, you would need to meet the eligibility criteria for each benefit separately. Asides this, if you are looking for help with your mortgage payments as a single parent on benefits, there are many options available to support you.
References:
Financial Support for Single Parents | Benefits | Information | singleparents.org.uk