Shared Ownership Mortgage Solely on Disability Benefits

NatalieanneDFW

Hi everyone, 
I just wondered if anyone has successfully been able to buy shared ownership solely on disability benefits and been able to obtain a mortgage for the share. I'm looking for a few hours of therapeutic work but that's all I can manage at the moment however I would love to have a more secure home than private renting. My 11 year old son also receives disability allowance and we receive universal credit. 
I have access to a deposit for the share.
All is affordable but the sticking point is that I'm not employed and there is a lot of discrimination around this. 
Please no judgements or advice in the risks of SO or recommending Council housing as I'm aware. I would just like to stick to the aspect of getting a mortgage with two people in the family having long term health issues. 

Thank you in advance 🙂

born_again

Best bet is to have a talk with a local mortgage advisor. They may know of lenders that are happy with your situation.

I would question if you would be able to use any of your son's allowance towards a mortgage though.

But I wish you luck & can fully understand why you are looking to do what you suggest. More stability in life.

poppy12345

I can't honestly see how this would work or even how you could be accepted for a mortgage when you're not working. Personally, i wouldn't want the stress of a mortgage.

NatalieanneDFW

poppy12345 said:

I can't honestly see how this would work or even how you could be accepted for a mortgage when you're not working. Personally, i wouldn't want the stress of a mortgage.

Thank you but I'm only going to be stressed about private renting and need to move every few years. That's stressful. Why would you think that people with disabilities would not want security for themselves? 
Why shouldn't I be accepted for a mortgage just because of my health? 

NatalieanneDFW

born_again said:

Best bet is to have a talk with a local mortgage advisor. They may know of lenders that are happy with your situation.

I would question if you would be able to use any of your son's allowance towards a mortgage though.

But I wish you luck & can fully understand why you are looking to do what you suggest. More stability in life.

Thank you. I've spoken to an advisor today and they do include it as it's part of our household income. 

NatalieanneDFW

poppy12345 said:

I can't honestly see how this would work or even how you could be accepted for a mortgage when you're not working. Personally, i wouldn't want the stress of a mortgage.

I've spoken to a mortgage broker today and they have said that I do have options and there are providers that can help. 

poppy12345

It's just my personal opinion, which i have the right to have. I have a disability myself so i'm not discriminating you at all. Although i wish you good luck, it's personally not something i would ever consider myself.

NatalieanneDFW

poppy12345 said:

It's just my personal opinion, which i have the right to have. I have a disability myself so i'm not discriminating you at all. Although i wish you good luck, it's personally not something i would ever consider myself.

Totally respect your personal opinion but do you mind me asking why as it may help me see another view? 
I've always had my heart set on a more permanent situation for me and my kids but perhaps I'm looking with Rose tinted glasses. I understand there will be a small mortgage to pay on top of rent that will have to come out of my other money and the rent side is covered by UC. I understand circumstances could change etc. 
Please can you advise what your hesitancy is as may just help. 
Thank you 

KxMx

I'm no expert on SO but would you also have to find money for repairs and maintenance on top of the small mortgage? 

I'm also disabled and can understand totally why you want out of private renting. 

I'd ask why you've ruled out a council tenancy as that would give you security and no responsibility for expensive repairs etc.

A secure council tenancy would give you security and while it might not be your first choice, it may be the most sensible financially in your circumstances. 

cattie

Although I understand about wanting a secure roof over your heads, I agree with poppy as owning a property isn't just about paying the mortgage & you need to be sure you have a financial cushion before going ahead. There is the upkeep & maintenance to pay for, roof problems for example could cost in the £thousands if replacement is needed, a new boiler could set you back £2k or more. Buildings insurance is essential-probably billed along with service charges as part of the S0 scheme. I'd advise you to check out any extras on top of the mortgage that you might need to budget for.
Then there's the cost of the legals, will you have enough to pay for these to enable you to go ahead?

You don't say if your intention is to staircase in the future to be able to own a bigger proportion of the property, but until you own 100% there will never be full security as you will still be paying rent.

It's never wise to consider buying a property without a few thousand £ in the bank for emergencies I feel, so just be sure your financial position is sound before going ahead.

poppy12345

I once had my own home, with a mortgage, my marriage brokedown and i could no longer pay my mortgage. I had 3 small children all under the age of 7 and i wasn't working. My Ex was always the one that worked, while i stayed home to look after the children. My house we repossessed and i tried everything i could to stop this happening but i hit a brick wall with everything i tried. I had 2 weeks to find us a new home, thankfully i managed it but it was the most stressful time of my life and all of this on top of an abusive marriage.

You say renting is less stability but i don't know how you can say that when your rent is covered through UC.  You're claiming benefits, how do you know this will be forever? What if you lose the DLA for your son? would you be able to continue to pay the mortgage if this happened?

When he reaches 16 he will have to apply for Personal Independence Payment (PIP) because DLA no longer exists for those aged between 16 and state pension age. DLA and PIP are 2 completely different benefits, with different criteria, will he qualify? Yes, there's 5 years until this happens but that will come around so quickly and it will be here before you know it.

You can claim for help with the mortgage through support for mortgage interest (SMI) after 9 concecutive months with zero earnings but this is just a loan and will need to be repaid back in the furture.  Yes, i know that working and having a mortgage is also a risk but the risk is much less.

The only time i would ever own my own home now is if i won the lottery..