Interest Paid by Government? Disabled Mortgages?

ShaShaSha

Hi all, wonder if I could get some advice.

I am disabled, was born with a birth deformity & my partner is also disabled with a brain condition. I recieve higher DLA, Incapacity Benefit & Income Support. My partner gets Lower DLA.

We get housing benefit, and currently have to top that up with £200 out of our benefits a months to cover our rent.

We would really like to buy our own home, especially as we are paying so much rent and now have two kids and would like somewhere secure to live.

Can someone tell me:

*Do we qualify for Income Support Mortgage Interest (ISMI)?
*How do we got about getting a mortage with our disability income?
*Can someone give me a rough calculation for a standard £100,000 mortgage with the interest paid? so we have a rough idea of what we would have to pay?
*Is this available in Scotland?
*Would we have to still pay a deposit? if so, is there help available for that?
*How do we claim?

I know we are asking a lot, but ive always been told by family id never have my own home, so its a real dream for me.

Thanks in advance

milliebear00001

I am no expert, and I don't want to be a doom-monger, but I don't think there are any lenders who lend purely on benefit based income. As I understand it, all lenders will require at least some of the income to be salary based, although some will allow certain benefits in addition to this.

To be sure, I would suggest you contact a whole of market broker, or perhaps one will be along here soon.

_Andy_

Do you actually have a deposit saved up?

collingbone614

I wonder if it isn't possible for you to somehow go via a housing association and buy a 'share' of the property or rent to buy or this kind of thing?

barneybud

Have a look at the MySafeHome website they are for the long term disabled to get a mortgage if on benefits.
They charge a fee which is refundable if you don't complete the purchase.

benjo

Hi, I cant answer your question regarding lenders who would lend to someone 100% reliant on benefits, but I hope my comments might be helpful when thinking through this issue.

I can see how it might make sense to buy a place and use income support to pay your mortgage rather than using income support to pay your rent, after all, you would only be asking for income support to pay for 25 years opposed to asking income support to pay your accomodation costs for the whole of your life, so yes that is a cheaper option for the tax payer....

However, even if this were possible, have you considered the additional costs associated with home ownership?

Buildings/contents insurance.

Life insurances for you/your partner - possibly preclusive to someone with chronic health conditions who is on benefits.

An emergency fund to pay your mortgage if/when the DWP forgets to pay you on the right date.

A rather large emergency pot that I call 'oh hell the roof fell in'.

An everylasting purse to pay for ongoing maintainance.

This might get complex, since if you did save a deposit to enable you to buy a house on the open market - it might have an impact on your entitlement to income support and housing benefits, you would need a welfare rights advisors opinion on that.

As other have mentioned, shared ownership via a social housing provider might be worth exploring, goodluck.

ShaShaSha

Thanks so much for all the replies, especially Benjo - give us a lot to think about.

We are hoping to reduce the amount we are spending on our housing (as currently topping up by £200 a month) and also I doubt we could get 100% mortgage, so need to look into that also.

We are now also looking at shared ownerships with our local council.

Lots of things to think about, so thanks everyone.

Just feel a lot happier that we may have a bit more security than rented accomodation - its a huge thing for us!

angeltoad

http://www.mysafehome.info/newsdetail.php?newsid=34

I did not know about the My Safe Home site, and had a look, and whilst the organisation still exists, it looks like the chance of owning your own homme if you are disabled might have been dashed by the Coalition Cuts. Check the link above for their news.

Whilst lenders may not have anything theoreticaly against giving mortgages to those on benefits, the levels of benefits are usually below the threshhold of income that will qualify you to be eligible. All I can say is that it would be good to write to your MP or the Minister for Disabled People and beg them to look at the way the disabled are disadvantaged in this way. https://www.writetothem.com is useful. http://www.writetothem.com
:A

kingstreet

It's disappointing MySafeHome is having trouble in continuing its excellent work. I attended an Orbit Homebuy seminar in October last year where MSH made a great impression with the passion they showed for what they were doing.