Income Support Mortgage Problem

ghoti316

We have an interest only mortgage and planned to change to repayment but my wife is disabled and i am now her carer. We can not find a lender that will allow us to remortgage as the majority of our money is income support and they won't take this into consideration. So in about 21 years when our mortgage needs to be paid we won't have the money and could be homeless. We can not afford to change to repayment with the morgage we are with now as the rates are to high. Do you know of a mortgage lender with reasonable rates that would take on someone on income support plus dla, carers allowance?
Another suggestion from our lovely children is that they would start a savings account and pay off the balance, the house will eventually be theirs anyway.
Would this be legal? Any advice would be appreciated.
Thank you

cattie

Income support & other means tested benefits are not taken into account as income by most major lenders. Dla can be classed as income because it isn't a means tested benefit.

I've heard that Northern Rock are happy to grant mortgages to people with disability benefits providing they meet the income requirements for the mortgage amount.

The savings account your children propose would be good idea & perfectly legal. Saving in tax efficient accounts such as isa's is worth considering.

The other option for you is to sell the house & downsize when the mortgage term is up, providing you would have enough equity to allow you to buy a smaller property from the proceeds.

Cute_'n'_Quirky

You need to seek advice from a qualified Independent Mortgage Adviser in your area, who will be able to help you.

ghoti316

Hi and Thank you for your advice, lots to think about.

cattie wrote: »

Income support & other means tested benefits are not taken into account as income by most major lenders. Dla can be classed as income because it isn't a means tested benefit.

I've heard that Northern Rock are happy to grant mortgages to people with disability benefits providing they meet the income requirements for the mortgage amount.

The savings account your children propose would be good idea & perfectly legal. Saving in tax efficient accounts such as isa's is worth considering.

The other option for you is to sell the house & downsize when the mortgage term is up, providing you would have enough equity to allow you to buy a smaller property from the proceeds.

ghoti316

Hi
Thanks for your advice, we have spoken to many a mortgage adviser but they all say the same. They won't take the income support into account, which is most of our income so they are unable to offer us a mortgage. We found one that would cheshire, but they start at a reasonable rate and go up to 9.5%. after one yaer, We would not be able to afford the repayments on this. but thanks for your help anyway.

Cute_n_Quirky wrote: »

You need to seek advice from a qualified Independent Mortgage Adviser in your area, who will be able to help you.