Partner on ESA, both have HTB ISAs

wolfgang86

Hi guys, hopefully you can help answer a few concerns as Halifax weren't prepared to until I want to offer on a house.


Basically me and my partner are currently saving for a deposit, looking to buy in 12 months time. We both have help to buy ISAs, which we are fully utilising.


The issue we might have is that my partner is not working and receives employment support allowance for disability (which is not a permanent disability), while I do work full time.


Would a lender prefer to lend to me alone, rather then the both of us? If they lend to me alone would we still be able to use the money from her ISA? How much does being on ESA affect the application, she doesn't get much from is (~£6000 a year) is this totally discounted, and she is considered as not earning anything?


Thanks in advance
W

MortgageMamma

Hello Wolfgang


Most lenders will not accept state benefits such as ESA - some will accept disability living allowance or personal independence payment if it is a lengthy award. Carers allowance can also be considered. I am not sure about ESA I would have to check but again I think it would need to be a long award.


I think you need to speak to the bank you got the help to buy ISA's from to get advice on whether your partners savings in the ISA could be utilised for mortgage deposit even if she is not on the mortgage. I honestly don't know the answer to that one, perhaps someone else will but I'd be surprised if you could use it that way.

wolfgang86

On one of the banks online mortgage calculators it has the same lending results for me alone with my wage, as with me and my partner, with her wage set as 0.


So I assume we can have a mortgage with her not earning, and use both our ISAs.

MortgageMamma

Possibly, but online affordability calculators are notoriously inaccurate! Which bank are you thinking of using? I have just reread your first post that Halifax won't help you until you are ready to offer on a house - that's very poor service! How are you supposed to make plans if a lender won't help in the crucial planning stages?!

ACG

I do not think ESA will be allowed with any lenders, certainly none I can think of off the top of my head.

With regards to the ISAs, if they are not on the mortgage they MAY be able to use the money from the ISA but not the bonus. But there is nothing stopping you applying in joint names and using both ISAs - unless the affordability alters.

wolfgang86

I was also quite surprised with the Halifax! I couldn't care less who I have a mortgage with really, whoever can offer the best deal at the time.


I'm not concerned about not accepting ESA as my wage is decent, but I just don't want my partners income of 0 to affect being accepted.