'My Home Ownership Service' for disabled people and their families

This service is intended to help people with disabilities access home ownership, and not to be excluded from home ownership as a solution for housing.

Ian Haughey is a Principal Advisor in financial services who has worked in this sector for 17 years. Over the last 5 years Ian has worked closely with disabled people and their families to deliver access to appropriate regulated financial service and products.

Ian believes that having a disability shouldn't stop you from being able to get a mortgage, even if you rely on benefits for all or part of your income.

Before you start applying for mortgages

If you want to apply for a mortgage, either to buy a new property or re-mortgage an existing one, it is important to make sure you are well prepared and seek professional advice.

Getting a mortgage if you’re in receipt of sickness benefits or disability benefits

If your income is either partially or mainly made up of benefits, this shouldn't stop you from getting a mortgage.

Some lenders are more likely than others to accept disability benefits as income when doing their affordability checks. Ian Haughey can help you find a lender that is more willing to lend to someone in your situation.

Benefit related income that may be considered by potential lending partners:

• Employment Support Allowance – 100% of this benefit can be used when assessing what a potential home buyer can afford. This can also be done where the applicant has no employment income.
• Disability Living Allowance - 100% of this benefit can be used when assessing what a potential home buyer can afford. This can also be done where the applicant has no employment income.
• Personal Independent Payment – 100% of this benefit can be used when assessing what a potential homebuyer can afford. This can also be done where the applicant has no employment income.
• Carers Allowance – 100%of this benefit can be used when assessing what a potential home buyer can afford. This can also be done where the applicant has no employment income.
• Child Benefit - 100% of this benefit can be used when assessing what a potential home buyer can afford. This can also be done where the applicant has no employment income.
• Child and Working Tax Credits - 100% of this benefit can be used when assessing what a potential home buyer can afford. This can also be done where the applicant has no employment income.
• Part time income - 100%of this benefit can be used when assessing what a potential home buyer can afford. This can also be done where the applicant has no employment income.
• Income Support - 100% of this benefit can be used when assessing what a potential home buyer can afford. This can also be done where the applicant has no employed income. To take the benefit into consideration the applicant must be in receipt of either Disability Living Allowance or Personal Independent Payment.
• Mortgage applications with up to 4 people on the mortgage.

 

Help with mortgage interest payments - Support Mortgage Interest

If you’re claiming a benefit such as income-related Employment and Support Allowance or Income Support you might be able to claim help with your mortgage interest payments. This is called Support for Mortgage Interest. (SMI)

If you qualify for SMI you’ll get help paying the interest (but not the capital repayments) on up to £200,000 of your mortgage.

You can claim this support even if you are in receipt of benefits when you apply for your mortgage. However, please note that not all lenders will count Support for Mortgage Interest as income when deciding whether or not to lend to you.

The Department for Work and Pensions (DWP) can reduce the amount of support you get if it deems your home is too big or is located in an area that is too expensive. If this happens to you, you should explain to the DWP why you need:

• a larger home (for example, you have a live-in carer or need to keep lots of bulky equipment at home);
• to live in a particular area (for example, you have to be near family or a particular hospital);

Schedule 3 IS (General regulations) para 4 sub para 9 (SI 1995 No 1613) says: "Housing cost shall be met in any case where the loan was taken out, or an existing loan increased, to acquire alternative accommodation more suited to the special needs of a disabled person than the accommodation which was occupied before the acquisition by the claimant".

A further point about SMI:
SMI will only repay the interest on the loan, it will not repay the capital nor will it repay, for example, the insurance premium element in an endowment mortgage. For this reason the approach most commonly adopted is to raise an interest only mortgage.

Find out more about Support for Mortgage Interest on the Gov.uk website

Solicitors

You will have to pay the costs involved such as valuation and legal fees, estate agents fees, advertising, disconnection charges and removal costs.

Advice to find a solicitor can be made via Ian Haughey.

Adaptations

Some people will require some alteration or adaptation to the property. 

You can apply for a Disabled Facilities Grant (DFG) which is mandatory if you meet the criteria. This grant can fund up to £30,000 of work. There is nothing to prevent shared ownership being combined with a DFG. https://www.gov.uk/disabled-facilities-grants/overview

Help and support

Before you buy your home and move in, it is important that you make sure the help and support you need is already in place. You can discuss this with Adult Social Care.

Your legal rights

If you can afford a mortgage, banks and other lenders are not allowed to reject your application just because you are disabled. Equally, lenders cannot insist that you pay a larger deposit or make larger monthly repayments than non-disabled customers.

For more information contact Ian Haughey, who specialises in finding mortgages and insurance services for disabled people. Plan B Advice Service is a member of Housing &Support Alliance

Ian Haughey BSc (Hon’s), Principal Advisor

The Plan B Advice Service,

Tel: 0141 237 3895

Mobile: 07881 581488

Email: ianghaughey@gmail.com

Ian Haughey is an appointed representative of Intrinsic Mortgage Planning Ltd who are authorised and regulated by the Financial Conduct Authority

Case study click here Case Study summary.pdf

REMEMBER: YOUR HOME IS AT RISK IF YOU DO NOT OR CANNOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOANS SECURED ON IT.