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Can I Get a Mortgage if I Have a Disability?

We explore how to get a mortgage when you have a disability

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By Pete Mugleston  | Mortgage Advisor Pete has been a mortgage advisor for over 10 years, and is regularly cited in both trade and national press.

Updated: 6th September 2019 *

For the millions of people who are disabled in the UK, obtaining a mortgage can be tricky.

The main factor which is likely to hinder a provider from lending is usually relating to your affordability - the amount, and perhaps even more importantly, stability, of your income.

However, lenders’ eligibility requirements vary, so if you’ve been declined a mortgage in the past, don’t give up hope. The whole-of-market experts we work with are on hand to provide you with bespoke advice. Get in touch today.

Our guide to mortgages for disabled borrowers covers the following topics...

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How do my disability benefits impact my mortgage application?

In the context of getting a mortgage, “disability benefits” refers to the income you receive for either short-term absence (i.e. where a return to work date has been set) or long-term benefits, if you’re permanently disabled. 

Another significant factor for many mortgage providers is that, although many are happy to consider government benefits as income, the biggest hurdle for many is if these benefits are supplementing a low income.

Another key concern, regardless of whether you have a short- or long-term disability, is “the continuance factor”. In other words, “‘what is the likelihood of this income continuing?” and “what happens if the income drops?”

Can I get a long-term disability mortgage?

The majority of lenders will accept long-term disability income provided you are able to demonstrate that the payments will continue for the foreseeable future. 

To prove your disability income is reliable, you will probably need to supply the provider with a benefits statement that includes the payment amount, frequency and whether there is a prospective end date of the payout.

As with any mortgage, lenders will want to know how much deposit you have and  about any history of adverse credit you may have. In short, you will need to demonstrate that your income is sufficient to cover your monthly repayments. 

Although some forms of income may not be deemed “acceptable” by some mortgage providers, you may be able to obtain a loan using your Social Security disability benefits or long-term disability payments.

Long-term disability insurance policies often require that you’re subject to regular re-evaluations, but provided you continue to do so this shouldn’t affect your eligibility to apply for a mortgage.

Can I get a mortgage while on short term disability?

It’s slightly more challenging to assess mortgage eligibility using short-term disability income benefit to boost your affordability.

For example, there’s no confirmation as to whether this income will be extended and the date of your planned return to work may not be known. It’s therefore problematic for lenders to approve an application based solely on short-term disability income benefit.

In the case of short-term disability applications, providers have to ask themselves what income they should be using to approve the mortgage or determine how much they are willing to lend.

For example, if you need your pre-injury income in order to attain loan approval, the lender may be able to base the application on your old salary - if they know exactly when you’ll be returning to work. 

This would have to be supported with a letter from the employer stating the anticipated date you will return to your job. You may also be asked to provide a letter from the physician administering the care. 

In a nutshell, the more documentation you have to support your anticipated return to work date, the better your chances of being able to use your original income, even without you actually being back to work yet.

Complications arise if you’re unable to guarantee a return date, or if your pre-injury salary isn’t sufficient to cover your desired mortgage. 

If you’d like further advice from a mortgage disability specialist, contact us today.

Mortgage lenders that accept disability benefits

There are a huge number of both high street and independent mortgage providers that are happy to accept Disability Living Allowance (DLA) or Personal Independence Payment (PIP), as an acceptable source of income for affordability purposes.

Natwest mortgage disability benefits

As one of the most common high street providers, lots of customers want to know Natwest’s stance on accepting disabled applicants’ mortgage applications and what other benefits they offer.

At the time of writing, Natwest claim that they are happy to “consider up to 100% of Disability Living Allowance / Personal Independence Payment.”

What’s more, they’re also working on a number of other accessibility options to improve their services and help customers with their day-to-day banking.

Many other lenders, both high street and specialist, cater for disabled borrowers yet finding the provider who is the right fit for your personal profile can be tricky.

Going direct to a lender, even a reputable one like Natwest, comes with the risk of missing out on a potentially better deal elsewhere, but if you kick off your application through a whole-of-market broker, this won’t be an issue.

Speak to an expert for advice on mortgages for the disabled

If you suffer from a disability and are seeking a mortgage, don’t hesitate to get in touch, whatever your circumstances. 

The whole-of-market brokers we work with offer you impartial advice and can identify the most suitable lender for your situation.

You can submit an online enquiry or give us a call on 0808 189 2301. We only work with 5* accredited advisors, we don’t charge a fee, and there’s absolutely no obligation on your part.

Updated: 6th September 2019
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FCA disclaimer

*Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The info on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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