Can someone purely on benefits get a mortage for a council flAT?

abcd1111

can someone who is completely disabled, living on benefits-so incapable of work- be considered for a mortgage for a council flat?

75000 pounds would be the loan needed.

glentoran99

so what your saying is you want the government to buy you a house?

Browntoa

yes


https://www.moneyadviceservice.org.uk/en/articles/getting-a-mortgage-if-youre-ill-or-disabled

ACG

It can be done. I have done one before.

abcd1111

Thanks, Bowntoa.
That's v. helpful.

abcd1111

ACG, you have made my day!
There is some hope, then, for us disabled out there.

tomtontom

Some lenders will take benefits as income, but they won't take the full amount into account and you're unlikely to get anywhere near £75K. You also need to keep in mind that your benefits are not guaranteed, you may fail a renewal or the govt may change the criteria. I wouldn't commit to a high level of expenditure on something so uncertain.

ACG

I have only done the one. It was for a gentleman who had worked for a manufacturing company. He had an accident and was physically unable to walk and was made redundant.

He had been given guaranteed DLA (im not sure of the terminology but basically it was not up for renewal every year or so). There are certain criteria and only certain benefits are accepted. It will need to pass affordability like anyone elses but as I said, it can be done.

I would suggest you speak to a broker unless you are prepared to do the donkey work yourself as I did find there were only a minority of high street lenders prepared to do it.

Brock_and_Roll

glentoran99 wrote: »

so what your saying is you want the government to buy you a house?

What a crazy world we live in where the government gives away significant tax-payer owned asset to a householder for free and without any risk.


To make matters worse, this asset once owned by the householder is now permanently out of circulation for any future disabled residents that are unable to work.

tomtontom

ACG wrote: »

I have only done the one. It was for a gentleman who had worked for a manufacturing company. He had an accident and was physically unable to walk and was made redundant.

He had been given guaranteed DLA (im not sure of the terminology but basically it was not up for renewal every year or so). There are certain criteria and only certain benefits are accepted. It will need to pass affordability like anyone elses but as I said, it can be done.

I would suggest you speak to a broker unless you are prepared to do the donkey work yourself as I did find there were only a minority of high street lenders prepared to do it.

This is an example of how things can change. It used to be possible to have a lifetime DLA award, but now for DLA and the new PIP all claimants will be subject to review, meaning a possibility of a change in award. Also if expecting help with mortgage interest from the govt this will change to a secured loan in the future, with admin fees on top. Not something I'd want to commit to.

GwylimT

It depends on the lender, when we purchased our flat my wifes DLA was considered as income, when we then moved to another she was on PIP which was not counted as income.

Benefits such as a state pension are considered income by virtually all lenders.