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Mortgage whilst on benefits

myydeafworld4
myydeafworld4 Member Posts: 2 Listener
Hi I couldn't find anything on mortgage while on benefits I would like to own my own home suitable for my long term health I don't wanna keep moving neither plus I am a single parent as well any advice would be handy right now

Comments

  • Sam_Alumni
    Sam_Alumni Scope alumni Posts: 7,676 Disability Gamechanger
    Hi @myydeafworld4 welcome to the community, what benefits are you on? Do you want to give a little more info and we can see if we can help?
    Scope
    Senior online community officer
  • Sam_Alumni
    Sam_Alumni Scope alumni Posts: 7,676 Disability Gamechanger
    @Debbie_Scope can you help at all?
    Scope
    Senior online community officer
  • Debbie_Alumni
    Debbie_Alumni Member Posts: 944 Pioneering
    Hi @myydeafworld4 and @Sam_Scope ,

    It would be really difficult to get a mortgage when your sole income consists of benefits. Since the financial crisis back in 2008, lenders have tightened up considerably. Strict affordability tests are applied to mortgage applications. You have to show that you can afford the mortgage and sustain it now and further ahead in the future. You will be tested on how vulnerable you are to income stresses such as a rise in the interest rates. Benefits are not as secure and stable as they once were and this all adds to the risk.

    You'll also have to factor in a deposit, legal fees, insurances, stamp duty and all the other related costs. Insurance can be difficult and expensive to obtain if you have pre-existing medical conditions and you'll need life insurance to secure a mortgage. 

    I'm currently working on some information about mortgages and I'll come back and post once it's complete.

    Best wishes
    Debbie

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