mortgage lenders for disabled

jaytol

Hi ,
Could you please tell me if there are any mortgage lenders willing to lend to disabled people who have no income other than benefits . I'm trying to find a mortgage for my brother who has a long term disability but have only found one broker so far but they were asking for a 40 % deposit which is too much .
I haven' t exhausted all avenues so far but pretty much , someone said Nationwide might but only through a broker . I have tried most high street banks and brokers but no luck .
Thanks

Owain_Moneysaver

If you happen to be in Scotland, Housing Options Scotland may be able to advise.

Even if you aren't you may find some of their resources useful

ACG

There are lenders who will do it. No idea why 40% is needed though, Find another broker.

kingstreet

Have you spoken to this firm, who specialise in advising the disabled;-

http://www.mysafehome.info/

Annisele

I wonder if the 40% is more about affordability than anything else?

For example, if I want to buy house that costs £100k, and the lender will only lend me £60k, then I need a 40% deposit. The same lender might still be quite happy to lend me £60k on a house worth £66k, and then I'd need a much smaller deposit.

OP - can you give us any idea of the benefits your brother receives, and the amount he wants to borrow?

jaytol

Hi , referring to the previous post , yes i have contacted mysafehome but they are unable to help.
I fear you are right as regards the amount the lenders are willing to lend ,more of a monetary limit rather than a percentage.
The property is £ 90,000 and the broker said the deposit would be between £ 30 - 34 000. The broker also said their fee would be £ 4000 which is exceptionally high but there doesn 't seem to be an alternative , this is the only brokers so far that is willing to give him a mortgage .
We have tried a half a dozen brokers with no luck , i was wondering whether anyone knows of any specialist brokers or what the best routes are to source such a broker or lender .
He receives around £ 250 per week in benefits , this was classed as income by the broker adding up to about £ 12500 a year .

ACG

Dont be desperate enough to pay £4k in fees to a broker. That is a complete an utter rip off. Chances are a fee will be needed as its likely to be a small mortgage, but £4k is not even in the right ball park.

Generally speaking you can get around 4x your income. So whatever that is the rest would need to be a deposit. As annisele says that could be why the deposit is so much.

skint_chick

If your brother's income is £13,000 (£250 x 52) then for a £90,000 house he would need a deposit of around £30,000 to £35,000 because of his income, not because he is disabled so 33% deposit upwards. He can only borrow up to around 4.5 times his income - this varies from lender to lender - because he has to be able to afford the repayments from his benefit income.

If he doesn't have that much deposit then he needs to look at cheaper houses or a shared ownership option. But he definitely shouldn't be paying a £4,000 fee to the broker!!