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problems getting new Mortgage as income includes State Benefits

pauliew
Posts: 14 Forumite
Hi all
I am in the process of selling my flat and looking buying one slightly up the property ladder,
I have a 31k mortgage with Alliance&Lecister,my flat has just been valued at 73k,when I phoned the A&L and asked about porting my mortgage and asked for increase of 10k,I was basically turned down as my income is now made up of half state benefits--LONG TERM INCAPACITY BENEFIT AND INDEFINATE DLA.added together amounts to around £8,000,A&l wont take my Incapacity into account when assessing mortgage!!!
I also have two separate employment Pensions of £4200.as I was Retired early 4 years ago and I am now 50 years old,am looking for a 15year mortgage with perhaps a 3 year fix to start with.
Can anyone advise me of Lenders who will take into account my Pension and state benefits incomes .
Sorry for being so long winded but can anyone advise its so confusing as I have never missed a payment on my mortgage and in fact for last year have actually made overpayments,can anyone point Me in the right direction.
thank so much
I am in the process of selling my flat and looking buying one slightly up the property ladder,
I have a 31k mortgage with Alliance&Lecister,my flat has just been valued at 73k,when I phoned the A&L and asked about porting my mortgage and asked for increase of 10k,I was basically turned down as my income is now made up of half state benefits--LONG TERM INCAPACITY BENEFIT AND INDEFINATE DLA.added together amounts to around £8,000,A&l wont take my Incapacity into account when assessing mortgage!!!
I also have two separate employment Pensions of £4200.as I was Retired early 4 years ago and I am now 50 years old,am looking for a 15year mortgage with perhaps a 3 year fix to start with.
Can anyone advise me of Lenders who will take into account my Pension and state benefits incomes .
Sorry for being so long winded but can anyone advise its so confusing as I have never missed a payment on my mortgage and in fact for last year have actually made overpayments,can anyone point Me in the right direction.
thank so much

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Comments
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The incapacity benefit isn't guaranteed and so I can't think of any lender that will take it into consideration, perhaps one of my colleagues will be able to offer something else but with the government stance on moving people off of these types of benefits then lenders are understandably twitchy!
So you have guaranteed income of about 12,200 and looking for £41k hopefully without any other credit in the background? If you have a totally clean credit history give Nationwide a call.I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Thanks for your reply,I am hoping some lenders will take my Incapacity into account as I dont think anyone will give me a mortgage on only the £8k,I only have around £300 on my credit card as I have just cleared it around 2k off!!!0
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How much is the indefinite DLA element?
The pensions of £4200 can be included.I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Hi sorry my DLA is around £3500,I will ammend as it looks like it is £8000 in post, my total income is £12,200,sorry Pauliew0
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Nationwide still worth a try, this is what they say:
We will be cautious where payment of a benefit is subject to regular review, but if we are satisfied that withdrawal of the benefit is unlikely, we will treat it the same way as earned income in the Affordability Calculation.
Don't let them credit score you unless they are confident that it will go through with an underwriter though! If this doesn't work then speak to an a good, local, independent mortgage broker.I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Thanks I will try them.
I am so stupid ,until recently I had my current account,savings and credit card with Nationwide,because I knew my mortgage was coming up for renewal with A&L,I decided to change over Current account to them.silly Me,although I left Current account open with Nationwide and still have savings with them,will this help a Mortgage descsion:eek:??0 -
I know for a fact that HBOS definately class Incapacity Benefit and DLA as income. Nationwide and RBS do to.
I hope it all works out for you. Good luck.0 -
Plenty lenders will take those various sources of incoem into account
They may not all take them 100% into account, but you should defintely be able to get a mortgage agreed
Have you spoken to a whole of market mortgage adviser? They should be able to find something pretty quickly for youI am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Hi all thanks so much for your advise,I got in touch with a local independent financial adviser,who had access to of whole of market.
He took all your advice and we tried Nationwide.
I now have a Decision in Principle for all I need.
So now can go ahead and look at houses in my price range,now pl:beer:ease wish me luck with my house sale,thank you all so much.
Kind Regards Pauliew0 -
Good luckI am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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