How to find a mortgage provider that accepts disabled people on benefits?

chris112

Im hoping to buy a property with the governments HOLD Scheme - Home ownership for people with a long-term disability OR the share to buy scheme


And i found this broker who does the leg work in finding a mortgsge provider who ould lend to someone purely on benefits,

I get:
PIP higher rate mobility & care
ESA Support group
Severe disability premium
Housing benefit

i have about £8k in savings so for a £250k 1 bed flat i would have enough for the deposit on my 25% cut of the property

As the broker i spoke with- 'my safe home', charge £5-8k for finding a mortgage provider and associated admin,
i want to cut out this middleman and do it myself, so i thought id ask people here if they knew of any mortgage providers who lend to people who receive disability benefits?


are there any other housing schemes out there that i could benefit from using to get a mortgage?

tomtontom

Very few lenders will now give new mortgages based solely on benefit income due to it being so insecure. The situation was very different a few years ago, but your options will be limited now.

You could call London and Country, they are a broker. I expect they will recommend you contact a specialist, such as the one you note.

[Deleted User]

A "whole of market broker" can often find mortgages other brokers can't.

chris112

thanks but ive since learnt you çant use housing benefit to pay off mortgages
so this rules out my chances of affording a mortageg

teddysmum

chris112 wrote: »

thanks but ive since learnt you çant use housing benefit to pay off mortgages
so this rules out my chances of affording a mortageg

That's only fair or everyone on HB would get a free house, bought by tax payers, who may not be able to afford a house for themselves.

[Deleted User]

chris112 wrote: »

thanks but ive since learnt you çant use housing benefit to pay off mortgages
so this rules out my chances of affording a mortageg

You really thought you could pay off a mortgage with housing benefit?

Scapegoat101

The only mortgage provider who offers mortgages to disabled people which I am aware of is Barclays.
They have a policy within their business which states their mortgage advisers cannot discriminate due to the disability discrimination act etc. Sadly other banks have managed to get round this.

I can understand why you want to get a mortgage. Your most likely paying tariff income on that £2000 of savings you have over the £6000 limit.

Go and have a chat with a Barlcays mortgage adviser. I suggest you try for a 10 year fixed rate.

Don't listen to the hate you get on MSE because its mainly just hot air. Its mainly people who don't know how to budget on a low income so they have to go out their way to bully less fortunate people in our great county

gb61

in the 80,s councils were doing a rent to buy, when the " right to buy" came into force, I remember people on benefits buying their home! I as a working person on low income couldn't afford to and still cant, but those people have now sold on and upgraded,,,,,,

tomtom256

Scapegoat101 wrote: »

The only mortgage provider who offers mortgages to disabled people which I am aware of is Barclays.
They have a policy within their business which states their mortgage advisers cannot discriminate due to the disability discrimination act etc. Sadly other banks have managed to get round this.

I can understand why you want to get a mortgage. Your most likely paying tariff income on that £2000 of savings you have over the £6000 limit.

Go and have a chat with a Barlcays mortgage adviser. I suggest you try for a 10 year fixed rate.

Don't listen to the hate you get on MSE because its mainly just hot air. Its mainly people who don't know how to budget on a low income so they have to go out their way to bully less fortunate people in our great county

But the mortgage wouldn't be denied because of a disability, it would be denied owing to insufficient income to be able to afford repayments, so there is no discrimination.

And as for hot air, sorry but if you are on benefits, not sure how you could afford a mortgage if the only income was DLA, ESA and associated premiums and pay your bills and feed yourself. Even the most frugal people would struggle with such a low income.

OP hasn't stated age so may also lose DLA if they have to migrate to PIP and/or get less if succesful.

There is too much that could change for any mortgage advisor to viably accept.

tomtontom

Scapegoat101 wrote: »

The only mortgage provider who offers mortgages to disabled people which I am aware of is Barclays.
They have a policy within their business which states their mortgage advisers cannot discriminate due to the disability discrimination act etc. Sadly other banks have managed to get round this.

I can understand why you want to get a mortgage. Your most likely paying tariff income on that £2000 of savings you have over the £6000 limit.

Go and have a chat with a Barlcays mortgage adviser. I suggest you try for a 10 year fixed rate.

Don't listen to the hate you get on MSE because its mainly just hot air. Its mainly people who don't know how to budget on a low income so they have to go out their way to bully less fortunate people in our great county

Barclays will take into account benefit income, but they will not offer a mortgage to someone who's income is solely from benefits.

teddysmum

There would be too much risk lending to someone whose only income is benefits, as future eligibility is not guaranteed and interest rates are at their lowest, so likely to rise, with no promise of the benefit increasing to cover any shortfall.


It is not discrimination against disabled people, as those on DLA or PIP could have a well paid job and be well able to meet payments, while able people, not working or on a low wage, may not be able to do so.


Also, as has been said, benefits are to help people to provide themselves with, food,warmth and shelter, but not to buy then a valuable asset.