Mortgages including DLA/Carers Allowance

TwistedPsycho

Good Morning Everyone,

I have looked through the threads and searched for similar answers but am still a little confused.

We are currently looking at getting a Decision in Principle as we are looking at a few properties including an auction one. We are living in rented accomodation at the moment but have previously owned a property so do not qualify as FTB.

Without starting an application though, many of the lenders appear to be quite vague on what they accept as income, I have a reasonable steady income but my wife does not work, instead she receives low rate DLA for herself and carers allowance because my 3YO is medium level DLA (Care Component).

I am not sure whether mortgage companies all accept DLA/Carers as an income or not? In theory I could get just about enough mortgage to apply as a single applicant, but that could complicate things?

Ironically the mortgage payments on a nice 3 bed house are now cheaper than the small 2 bed starter home we are currently renting and doing the figures on the estaimates the mortgage companies promote we would actually be better off each month, even with the additional house insurance. CT increase etc!

amnblog

Lenders as you have established have differing attitudes to state benefits.

If you are married many will not allow a single application in any case.

Buying a auction is an accident waiting to happen if you have not done it before.

Engage a good broker to stay safe.

ethank

How long is the benefit issued for. Lenders tend to prefer benefits that are issued for a long term and are not frequently subject to a review.

ACG

As ethank says, if th benefits are renewed annually or are due to stop shortly then you will find it near impossible to use them.

If they have been guaranteed then you should be fine with a few lenders. I would suggest speaking to a broker. Its possible to do a mortgage for people whos sole income is benefits so im sure where its only making up a small component of your overall income it should be possible.

TwistedPsycho

Thank you for your responses.

I am not surprised that being married is a barrier to getting a sole mortgage; I can understand why (especially if you have a second adult living in the house) although by the sounds of it many lenders could treat my wife as a "zero contributor" anyway.

If it is of help my daughters benefits (and therefore the carers allowance) is subject to review in three years, however it it likely to continue due to her condition. My wife's is due to review next year so knowing ATOS will probably be removed, but will likely be long term (DVLA / Consultant agree that her condition will mean she will never get her license back).

Pay wise I am £33k basic + £8k assured overtime (ours to refuse rather than theirs to offer) *but* I am hoping that over the next 2 months I will be getting promotion so if that happens in time then obviously all the better!

I also hear the concern about buying Auction. It is admittedly the most outside of the properties we have looked at.

Rmphotography

Avoid abbey / alliance and Leicester / santander like the plague. My wife works as a carer for a disabled adult with lifelong substantial care needs and the amount of hassle we have had with proving her income is stable has been a massive pain in the !!!! that is now entering it's 9th week!

TwistedPsycho

Thank you for your advice Rmphotography. I had considered Santander as I am a current account holder (basic as a legacy Premier A&L Account) but their handling of removing of benefits on those accounts was making me think 1.5 times....