Benefits and getting a Mortgage

Cola133

My sister and I want to buy a house (currently renting) she earns £37,099p/a with a full time job she has been in for 20+ years. I am on long term (10+ years) Employment and Support Allowance I receive £8,270p/a. What banks would accept benefits and is it best to go through a Mortgage Advisor?

I've had debts written off in the past with a DRO, my 'checkmyfile' does not show any adverse credit etc My score on checkmyfile is 767 out of 1000.

About 10-20 years ago I had an IVA that wrote off debts from NatWest, Halifax, HSBC & Barclays, so I'm unsure if these banks firstly accept benefits as income for a mortgage and secondly if they would ever lend me money again? (A previous answer to another of my questions, has told me that NatWest probably wouldn't loan again. I'm wondering about the other banks).

My sisters credit file is spotless with a score of 856/1000

Thank you for any help

elsien

Your credit score is irrelevant- banks will be concerned with your credit history. How long ago was your DRO?

You may also find that many mortgage lenders will not take your benefits into account as income. 

Have you considered what shares of the house you will each own if the amount you pay in will be less than your sister? 

Cola133

elsien said:

Your credit score is irrelevant- banks will be concerned with your credit history. How long ago was your DRO?

You may also find that many mortgage lenders will not take your benefits into account as income. 

Have you considered what shares of the house you will each own if the amount you pay in will be less than your sister? 

@elsien My credit file is clear of the DRO, it was 2018, no banks were involved in the DRO, it was loan companies. But 10-20 years ago my IVA did involve high street banks, which I have detailed above. I've double checked 'Checkmyfile' and there is nothing adverse on it. I know many mortgage lenders won't accept benefits income, but many do now. Due to health and personal circumstances, my sister and I will living together until we die, how do shares of the house factor into getting a mortgage? Is it something a lender will ask?? I've never heard of this. Many thanks

elsien

It’s not to do with the mortgage, it’s being clear on what happens if your circumstances change. You may plan to live together forever but the best laid plans and all that - one of you may meet someone, one of you may decide they wish to live alone after all, your sister may lose her job or become ill, one of you may need to go into care. It’s about covering all the bases so there are no fallings out further down the line.