Loan - DLA, Income Support, Incapacity Benefit

Pixie5740

You beat me to it DCFC79.

A credit score of 900? Who generates that score? Experian, Equifax, Call Credit? None of whom lend money I might add.

Disabled people are not worthless. Immigrants are not worthless. One man's terrorist is another man's freedom fighter although I can't think of a single cause worth blowing people up for.

Lenders decide who to lend to based on risk. You need to be able to demonstrate that you can meet the repayments. Borrowing money has got more difficult for a lot of people since 2008.

I'm self-employed and not a home owner so some lenders that I've been banking with for over 20 years won't touch me with a 10 foot barge pole despite having more disposable income than I've ever had. Although this thankfully means I don't need their loan so nah nah to them.

Gaz83

controversy wrote: »

Note: I am a disabled person who was born with his condition. I know what I am talking about.

To get credit as a disabled person you need to be in the top 10% of no risk candidates.
So basically you have to be the complete opposite to White Dee on benefits street.

This can be done by the following:

1. Have a credit score higher than 900.
2. Have 5 years of bank statements with a surplus.
3. Shopped at the right shops relevant to your income e.g. Lidl & Poundland.
4. Took the cheapest water, energy and broadband tariffs.
5. Live in a area which meets equal to or less than your housing benefit payment.
6. Don't make random withdrawls from your bank account.
7. Have perfect medical evidence for your condition.
8. Have a couple of fall back proffesions if your welfare benefits are cut or abolished.
9. Have family member that can act as a guarantor.
10. Show absoulte blind loyalty to your bank.

Now this may seem extreme but you have to remember disabled people are the lowest class in the UK. We basically are worth less than immigrants or terrorists. What you need to remember is that money is the biggest !!!!! because it never sleeps and exchanges hands with everyone.

So if you seem like a good investment bet your get the go ahead.

But the way things are going DLA will be cut by 20% as its converted to PIP. The test is exactly the same as ESA and many disabled people including myself will lose their DLA in the process.

There was also a leak by the BBC that ESA WRAG will be cut by 30% if the Tories or UKIP win the 2015 election.

So I would base your loan on the income of your Job Seekers Allowance.

I know this isn't nice but its the way things are.

I personally advise you to forget about this loan and see if any adaptations can be made to your loved ones home. There is money set a side for this reason.

If you want anymore info send a PM and I will reply right away.

Wish you all the best.

Not sure if serious

[Deleted User]

Gaz83 wrote: »

Possible, yes, but again, extremely unlikely given that her only means of repayments are benefits.

I don't see any lender entertaining this idea, sorry.

i have had a number of loans whilst on benefits the highest being 10k,at a time when i had 22k of cc credit available
BUT i do have a triple A credit rating

my best advice OP would be a secured loan with a reputable lender

tomtontom

woodbine wrote: »

i have had a number of loans whilst on benefits the highest being 10k,at a time when i had 22k of cc credit available
BUT i do have a triple A credit rating

my best advice OP would be a secured loan with a reputable lender

There is no such thing as a triple A credit rating.

I'm guessing none of your loans were taken out recently? You can't compare the current lending situation to that of even a few years ago.

tomtontom

Gaz83 wrote: »

Not sure if serious

I'm hoping he's not - there's not one thing in his post that's correct!

dealer_wins

controversy wrote: »

Now this may seem extreme but you have to remember disabled people are the lowest class in the UK.

Try being disabled living in almost any other country in the world before making this comment. Disabled people are treated (quite rightly) extremely well in the UK.

Opinion

I'm not looking to start a debate so if people are intent on that then please keep it to Private Messages.

I'm looking for facts. Thank you to those that have posted helpful replies.

Pixie5740

Has your family member approached their own bank about a loan? For a lot of people looking for a loan there own bank is a good option as they see how you manage your money on a day to day basis.

atrixblue.-MFR-.

Opinion wrote: »

I'm not looking to start a debate so if people are intent on that then please keep it to Private Messages.

I'm looking for facts. Thank you to those that have posted helpful replies.

The facts here would be that a loan of this amount going on over 15K, would cut her incapacity benefit amount to almost zero, as the incapacity has a cut off limit for savings/inheritance/windfalls/disposable income of over £16k and means tested benefit income support is means tested so a 15k loan would decrease income support payments because its way above its 6k saving/inheritance/windfalls/disposable income limit before deductions. even if she had the loan one day spent it the next day, it would still be counted, and she would still lose out, and the same for council tax benefits as it will be classed as deprivation of capital.


and if the well how would they know she had this loan we just keep quiet, DWP may not pick up on it right away, but in the end, they will when it comes time to do checks on the recipient of benefits who will have to declare all accounts including loan accounts, failure to declare to DWP of such accounts, is fraud.


lenders will discount the income support means tested on this basis on this amount of money as they know that money will probably be reduced or ceased as soon as the 15-25k is declared to the DWP.


I assume incapacity is a top up to income support for long term illness rate, surprised by now that they haven't been migrated to ESA or will in the near future, so treat as same as income support means tested anyway.


so what income will this leave on a £15k-£25k loan, just DLA and depending on the the level of DLA that income is minimal and not a benefit that you can solely live on to pay bills council tax and live week to week.


if you were to secure a loan against the house based on this, your family member will no doubt struggle to make repayments and the house will end up on the repossession sheets.


I cant see a lender approving any type of loan over £2.5k TBH with the income like this.

ailz95

Opinion wrote: »

Posting on behalf of a family member that is on Disability Allowance, Income Support and Incapacity Benefit.

They own their own property mortgage free, value around £225,000, and wanting to do some home improvements and looking to take out around £15,000-£25,000 to complete these. I realise there is a £10,000 difference between the upper and lower amounts- how much they want done depends on how much likely repayments would be.

Are there any lenders that would accept DLA, Income Support and Incapacity Benefit as income for the purpose of a loan?

(Did a Thread Search for each of the benefits and came up with nothing of threads over 5 years old. Also posting this on the Mortgages & Endowments board.)

Check with your local council. We had home improvements done on a Disability loan from the council, which will not be paid back until the house is sold or we die. It had to be things that were to enhance the disabled person's quality of life - we had rewire, new windows, level access rear entry and french windows, a new kitchen, a new shower - it wouldn't pay for re-decoration.

We have a mortgage and the house had to be re-valued and to be worth more after the work was done. Our work came to £27,500 which was estimated as 17.67% of the property value.