Mortgaging whilst on Disability benefits

HAMBLEYD

Does anyone know of any lenders or mortgage brokers that will take PIP and ESA SUPPORT as income? I am on a mortgage of 4.25% variable with a remaining term of 18 years, and I want to go on a lifetime fixed rate product of 2% or less, I have an LTV of 49%. I have seen some mortgages from 1.39%-1.79% for my LTV range that would save me £98 per month on an 18 year mortgage, which I could save in a high interest account to then pay off my mortgage quicker. But so far lenders I have chatted to, mainstream, will only take my PIP as income they won't take my ESA which is the bulk of my monthly income. I am wanting to do this remortgage to protect myself against mortgage rate rises, and to become mortgage free quicker. 2 years ago I had to give up working due to my worsening health and disability, but as yet I haven't found anyone who will let me remortgage due to my income being made up purely of disability benefits. I suspect I am not the only single disabled person in this situation.

Deanne1407

Hi Hambleyd,
I am in the same position as you except that my husband & I have small government medical retirement pensions but even though we can easily afford the suggested payment from Santander for a repayment mortgage, they won't help us at all & like you, we are also having difficulty finding another company that will. Given that we can prove that we have been on disability benefits long term & that my attempt to return to work a decade ago helped prove even further that I am unlikely to ever be able to hold a job, even on a part-time basis, plus the fact that we are both placed in the "support group" meaning that our benefits are only reviewed every 5 years, they still won't budge.

It really does seem extremely unreasonable that they will not accept benefits for the clearly proven longterm disabled when in reality, no job is ever really guaranteed in this day and age!

ACG

I think everyone would love a lifetime fixed rate below 2%, they are not available. You can fix for 2-10 years OR you can get a lifetime tracker.

There are some lenders who are more open to ESA/PIP than others but it comes down to the details, is your ESA guaranteed or is it reviewable?

dimbo61

Who is your current lender ?
Can you find a new deal as an existing customer with your lender online !

HAMBLEYD

My current lender can't/won't give me a better deal.