Disability Benefits and mortgages 31 December 2010 at 12:27AM edited 30 November -1 at 1:00AM in Disability Money Matters 10 replies 20.1K views

aimingforadebtfreelife

Hi all, any advice greatfully appreciated.

Has anyone had any recent experiences in mortgage applications where they take benefits such as carers, dla, tax credits etc into account as income. We have DLA and carers secured for a long time for my son and need a bit of a boost on income figures in this current housing market. Only one of us works as other is full time carer and with bank lending tight we need all the help we can get!!

Many thanks in advance.

[Deleted User]

Sons DLA will NOT count as its not YOUR income,not sure about CA as its dependant on the other

NotACleverName

Hi

I think it depends entirely on the banks/building societies individual policies.

I remortgaged in April of this year following my divorce from my husband. I was with the Co-op and switched to the Halifax as they took into account the benefits I receive for my sons (DLA, CA, Tax credits). I had no problem getting the mortgage even though I don't have any other means of income.

wattdallas

aimingforadebtfreelife wrote: »

Hi all, any advice greatfully appreciated.

Has anyone had any recent experiences in mortgage applications where they take benefits such as carers, dla, tax credits etc into account as income. We have DLA and carers secured for a long time for my son and need a bit of a boost on income figures in this current housing market. Only one of us works as other is full time carer and with bank lending tight we need all the help we can get!!

Many thanks in advance.

Hi they take carers has an income but not dla .

NotACleverName

wattdallas wrote: »

Hi they take carers has an income but not dla .

I still say the best thing you can do is check with the lender you prefer to mortgage with. Co-op wouldn't let me re-mortgage in my sole name, but the Halifax did solely on my DLA, Carers Allowance and tax credits.

Good luck.

aimingforadebtfreelife

Many thanks for the advice.

Its a situation I hate being in. We had to move to get nearer a better school for my son with his educational needs. As such we are in rented. But we have moved twice now in the last year as just when we get settled the landlord decides to sell. Happened once before and now our agent has written to say current landlord looking to retire and sell up but we have first option of buying the house.

With one wage in and all the benefits we can easily afford the mortagage but its persuading the bank as they just see the wage to go on. With the market as it is it will take all our savings for the deposit so will need all the boost we can get.

I will drop into Halifax next week for an informal chat first.

jaqs

Just as a follow up to this thread, I had a chat with the Halifax by phone this week as my fixed rate with northern rock ends this month...Although at first positive, it turns out that only 60% of the benefits ( in my case, child's dla, my carers allowance, tax credits and child tax credits and child benefits) are counted and our low income from self employment is not enough to obtain more than £30,000 offer, I needed £570000. So the Halifax do take into account these benefits but not for the full amount of the value.
So despite paying a rate of 4.75% for the past 10 years on a similar income, we could not be offered a lower rate! (value of house over £120,000 now too!)

NotACleverName

jaqs wrote: »

Just as a follow up to this thread, I had a chat with the Halifax by phone this week as my fixed rate with northern rock ends this month...Although at first positive, it turns out that only 60% of the benefits ( in my case, child's dla, my carers allowance, tax credits and child tax credits and child benefits) are counted and our low income from self employment is not enough to obtain more than £30,000 offer, I needed £570000. So the Halifax do take into account these benefits but not for the full amount of the value.
So despite paying a rate of 4.75% for the past 10 years on a similar income, we could not be offered a lower rate! (value of house over £120,000 now too!)

Interesting. I suppose this is a typical example of how things can change due to the economic climate. I remortgaged less than a year ago and had only carers, tax credits and childs dla (I have 2 disabled children), and I was granted a mortgage of over £100k on a property that is worth about £180k. At that time, they took into account 100% of my benefits. However, it seems now I wouldn't be so lucky!

Mortgage companies are always changing products and rules. It's a case of having to shop around until you (hopefully) find what you need. Good luck.

serendipity2706

You could try Nationwide. As a building society they are not profit driven. They gave me a decent mortgage when my main income was a student loan/grant and maintenance from my ex when no-one else was interested.
Or look at other non shareholder companies like Co-op etc

meandthekids_2

We recently had a similar issue, I'd found an advisor through the moneysavingexpert site who was great but even he had some searching before he found a lender who would accept these benefits, nationwide came up great, best of luck

TOBRUK

wattdallas wrote: »

Hi they take carers has an income but not dla .

I live alone and bought a house while I was working. However my fortunes changed and I had an accident which left me disabled and also developed a chronic illness. In short I gradually became less able to do my job and eventually I had to leave work completely.

I did eventually (after 39 weeks) get help from DWP with mortgage interest payments. Almost 2 years ago I collapsed, ended up in Intensive Care for a while and almost lost my life. As I live 100 miles from family it has been extremely difficult in coping since and through advice from many including my GP, I decided to sell my house (currently on the market) and move to be near my family.

As I didn't have a 'portable' mortgage I first needed to change the mortgage and I used a mortgage advice company which advised and looked up the best lender for me (someone in my position) and found a lender who would offer me a mortgage - Halifax, although there were others that would but Halifax gave best deal. This advice was free!

They took my DLA and other benefit (I don't have carers allowance as I live alone!) into account - I can't work and as things stand may never work again!

Look into a mortgage advisor company - you don't have to accept their services and if you don't will not be charged.

goffo wrote: »

I would have thought that this was a bit iffy!
With what the government are doing in changing most if not all Welfare & Disability benefits, there is no guarantee that next year or the year after that you will still be able to get those benefits and even if you do, they could be at a much reduced level.
At least if you are working and are made redundant you can find another job or at worst claim help through a means tested benefit or insurance policy.

To be honest I don't think I would temp fate and use any benefit, whatever it is, as a backbone to repay a mortgage.

With renting, you do have the ability to claim LHA if things get a bit sticky, and you don't have to worry about changes in benefit rates, or extra expense in maintaining a property.

Nope I'm too much of a coward and not enough of a gambler to consider applying for a mortgage based purely on benefits.
I'll leave that financial outlay, stress and uncertainty to those that are working that are likely to have a regular and secure job!

goffo, I understand what you are saying and agree with a lot you say, and it is worrying with all the changes this con(ning) dem(nation) government are doing - which will be absolutely devastating for people in our situation.

However, I already had a mortgage before things became totally belly up without any fault of my own as I had always been independant, always worked, had no worries and loved life! Nobody knows what is in front of them - which is a good thing!

Obviously everyone's situation is different and you have to measure up all aspects, pros and cons etc before you take the plunge. I have plenty of equity in my house and have a very small mortgage.

Good luck aimingforadebtfreelife, and hope this helps.