Housing and independent living
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Does anyone have any advice on getting a mortgage as someone with a disability?

oodlesofdoodles888oodlesofdoodles888 Member Posts: 5 Listener
Does anyone have any information for a disabled person, who is on benefits, i cannot work, but i am disabled and claim pip.  I would like to get a mortgage to purchase a property because i would like to have something to leave for my daughter.  Anybody out there can you help, as there seems to be a huge amount of discrimination toward disabled people who cannot work, obtaining a mortgage.  To make things worse i have lived at the same address for 9 years, paid the same rent for 9 years with a slight increase, and i have to move as my Landlord passed away and his daughter now want to sell this property.    Of all the discriminations against disabled people why has this not been dealt with yet....everyone has a right to a home.

Replies

  • Tori_ScopeTori_Scope Community Team Posts: 2,754 Disability Gamechanger
    edited August 2020
    Hi @oodlesofdoodles888! Welcome to the community :) I love your username.

    You're totally correct, everyone has the right to a suitable home. I'm sorry to hear about your troubles obtaining a mortgage. I've moved your post into the Housing and Independent Living category so that more of our members will be able to find your post and offer you some advice and support.

    I found this article on getting a mortgage as a disabled person on the Shelter website. It's targeted towards people living in Scotland, but I'm sure it's applicable to other areas too, so you might like to give it a read.

    Which benefit are you currently in receipt of?
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  • woodbinewoodbine Member Posts: 2,311 Disability Gamechanger
    hI @oodlesofdoodles888 the problem with trying to get a mortgage whilst on benefits is that they aren't reliable income, they can be stopped at any time, to be fair its not discrimination and lots of people who are not disabled have problems getting a mortgage. The best mortgage deals around require a 40% deposit, you might get one with a smaller deposit but its not easy in the current financial climate. Do you claim any other benefits as well as PIP?
    The best people to speak to would be what's known as a "whole of market, broker" they have access to a number of products that may or may not be available to you.
  • oodlesofdoodles888oodlesofdoodles888 Member Posts: 5 Listener
    Good Morning, Thankyou for your replies, i will go and have a look at what has been suggested.
  • Denise11Denise11 Member Posts: 98 Pioneering
    It was 30 years ago but we wanted a mortgage and got in touch with a finance company who sent one of there advisors out and he was really good.  He did say that we might be rejected due to having CP but there are different kinds of mortgages and obviously he knew all about them.  He did get us one but we had to go to a doctor to verify that we were able physically and mentally, and he did so were got a mortgage!  The finance chap did all the paper work for us.  Yes, we had to pay for his time but this is how they make their living so if they charge a lot of money they wouldn't want to price themselves out of the market.  You could ask different businesses how much it would cost before you picked one for you!  It saves you running around different banks getting confused as well.  Good luck!   
  • janer1967janer1967 Community champion Posts: 6,357 Disability Gamechanger
    Hi and welcome @oodlesofdoodles888 I totally agree and know it is very difficult for people on benefits to get a mortgage and even private rent and yes its because the income ca be stopped at any time.

    But in recent climate that can happen to a person in work as well but that doesn't seem to put them off lending to them

    I hope you find someone willing to help and let is know as we do get asked this question by other members
  • oodlesofdoodles888oodlesofdoodles888 Member Posts: 5 Listener
    I completely agree.  But if you are disabled and claiming benefits because you cannot work, then you are looked down on as if you are some kind of scavenger.   It is a public concept that people that claim benefits do so not as a matter of survival but a way of scrounging.  So disabled people are still discriminated against regardless of what has been said.  Just viewed generally as a defect to society.
  • poppy123456poppy123456 Community champion Posts: 22,214 Disability Gamechanger
    Hi,

    I'm disabled and rely on benefits...ESA/PIP and housing benefit. I have 3 adult children and i rent my home form a private landlord. I would love to be able to leave something for my children but sadly that's not going to be possible because having a mortgage for me is out of the question.

    How would you pay for the repairs to your house, if anything happens? At least with renting you don't have that worry. With a mortgage, there's no help for this apart from a loan for the mortgage interest, which needs to be repaid back in the future.

    My eldest daughter works full time (on maternity leave at the moment) she earns £25,000 a year, her partner earns £21,000 a year but sadly they can't get a mortgage because they can't afford the deposit that's needed...at the moment.

    How will you get the deposit for the mortgage?
    Community champion and proud winner of the 2019 empowering others award. This award was given for supporting disabled people and their families for the benefit advice i have given to members here on the community.
  • oodlesofdoodles888oodlesofdoodles888 Member Posts: 5 Listener
    Hi Poppy,  I would make sure i had building insurance, I already have Tenancy Liability Insurance as it is.  There was a time that you could get a 100% mortgage on a property without a deposit, and i think that for people who cannot afford a deposit, and in special circumstances it should be reviewed.  Everyone of us in this country had worked and paid our taxes, and lived as decent honest folk, but to me it just seems that everything is aimed at the top earners in the country, and that we have all fallen through the floorboards, even though we actually employ the Prime Minister of this country in our capacity as Tax Payers.     So why like in America and Sweden, was there no amount set aside to assist poor and vulnerable families..... at least Donald Trump as much as I do not support him, had the heart to send a cheque out to each and every American to make sure they would be ok.    

  • CressCress Member Posts: 357 Pioneering
    To be honest I'm surprised that anyone on disability benefits would think of enquiring about a mortgage...but then I'm remembering many years ago, after divorcing, being surprised that I was refused a bank account at the first two I asked, I really couldn't believe it!
    I then remember asking at my post office if I could have my income support and I think carers allowance paid into my bank account and the person behind the counter said "certainly not!" and laughed, sarcastically. 
    Obviously, I didn't know my place..which was the line of shame at the post office each Monday...lol


  • oodlesofdoodles888oodlesofdoodles888 Member Posts: 5 Listener
    Hi Cress exactly what i am talking about.  The only reason for enquiring about the mortgage is because, I would like to leave something for my daughter one day, and also I would not be subject to hikes in rent by Private Landlords.  If you add up what you pay in rent, deposit, rental agreement fees. etc....it is not cheap by any means.    Renting is becoming Rip Off Land, and if you have pets or children it is even worse.   Some allow children, but no pets, some allow pets but no children.  And the big news is if you want to keep your pet at the rented property then it is at least an extra £75.00 per month per pet on top of your rent.  So go figure, there is no winning.  I contacted a specialist broker today, who phoned me back and i gave him all the details, guess what he said before we ended the call "well let me think and chew this over" and i will come back to you, that was in February 2019.
  • woodbinewoodbine Member Posts: 2,311 Disability Gamechanger
    Hi Poppy,  I would make sure i had building insurance, I already have Tenancy Liability Insurance as it is.  There was a time that you could get a 100% mortgage on a property without a deposit, and i think that for people who cannot afford a deposit, and in special circumstances it should be reviewed.  Everyone of us in this country had worked and paid our taxes, and lived as decent honest folk, but to me it just seems that everything is aimed at the top earners in the country, and that we have all fallen through the floorboards, even though we actually employ the Prime Minister of this country in our capacity as Tax Payers.     So why like in America and Sweden, was there no amount set aside to assist poor and vulnerable families..... at least Donald Trump as much as I do not support him, had the heart to send a cheque out to each and every American to make sure they would be ok.    

    I'm afraid the days of 100% mortgages are well gone, think 2008 and northern rock who doled out 125% mortgages, there are some really good mortgage deals out there as low as 1.4% apr but they all require a 40% deposit (plus all the legal and moving cost) plus as Poppy pointed out when you own a property all the upkeep and repairs are down to you not a landlord, there are many people who are working with two household incomes who quite simply cannot afford to buy. You say you would like to leave something for your daughter that's always a nice idea but for many its impractical, you might be better channelling your efforts into finding somewhere new to rent as opposed to berating how you think disabled people are discriminated against when it comes to buying a house, does the same apply to those with poor credit history who can't get a mortgage? does it apply to those who can't save the deposit? or to those who work for NMW with low incomes? NO of course it isn't it is just how things are.
  • vikingqueenvikingqueen Member Posts: 229 Pioneering
        Building insurance will not cover normal wear and tear, i have just paid quite a few thousand pounds for a new roof because it had come to the end of its life. Insurance is only there for emergencies, and then you still have to jump through hoops in certain cases. When i bought my house 30 years ago interest rates were very low and my father said how would you manage if the rates went back up to 16 percent, wise words from a wise man.
       I was very lucky in that the rates stayed quite low but there was nothing to say they wouldn't shoot up, just because the rate is historically low now no one knows what will happen in the next few years, especially as the country is now in trillions of debt.
      
       
  • woodbinewoodbine Member Posts: 2,311 Disability Gamechanger
    @vikingqueen I take your point, although the national debt is just over £2 trillion, when over the years we had a mortgage we saw rates as low as 4% and as high as 17%, you can never predict how they will go,.
  • poppy123456poppy123456 Community champion Posts: 22,214 Disability Gamechanger
    Hi Poppy,  I would make sure i had building insurance, I already have Tenancy Liability Insurance as it is.  There was a time that you could get a 100% mortgage on a property without a deposit,
    Yes indeed back in the 90's that was possible but not any more. Building insurance wouldn't cover wear and tear. You have to think realistically here and claiming benefits and applying for a mortgage just don't go together.

    Community champion and proud winner of the 2019 empowering others award. This award was given for supporting disabled people and their families for the benefit advice i have given to members here on the community.
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