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Thread: Getting a mortgage when disabled

  1. #1
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    Getting a mortgage when disabled

    I'd be glad to hear from anyone who has taken out a mortgage while disabled and advice on the subject. PLEASE SPEAK FROM EXPERIENCE ONLY. I don't need links to webpages, I can find those myself.

  2. #2
    Senior Member Lighttouch's Avatar
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    I know where you are coming from as you and your partner want to live together under the same roof and that has evaded you both so far.

    The first time I went into home ownership was when I was aged 24. I was already disabled, in full time employment, had a girlfriend of two years who lived in London and we wanted to be together - sounds familiar!

    wWe decided to start living together in Manchester as the house prices were cheaper. But it meant I'd have to take out a mortgage in my name only as my partner would need to give up her job/income to be with me - she was a late teenager at the time.

    I didn't feel comfortable over committing on a mortgage especially as it was in my name only, So we decided to half buy and half rent a brand new ground floor 2 bedroom flat through a Housing Association.

    In those days you needed to put down a 10% deposit.The Building Society also wanted a 'Guarantor' e.g. someone to go to if I missed any payments - I used my parents as Guarantors but luckily never had to call on their goodwill.

    The next hurdle is how are you going to pay off the loan at the end of its term. Having a health condition doesn't go down well with insurance companies as they see you as a bad risk - no surprise there!

    I got around this by taking out a low-cost endowment mortgage which doesn't require a medical. I would learn 20 years later that wasn't such a smart move - another story another time!

    In your case at your time in life it doesn't make sense taking out a full mortgage even if you could afford it.

    Life is a compromise and you may have desires to live in certain areas but your budget doesn't run to it. Also you have to look at areas you can afford not where you want to live.

    I wrote down all the outgoings even down to a haircut to make sure I didn't spend more than was coming in.

    Dangers of having a mortgage
    - you'll need to save a deposit
    - you need a guaranteed income each month to cover your overheads
    - mortgage rates can go up as well as down. At one time my mortgage rate was 15% and for a 52k mortgage it was costing nearly £600 a month - that's before any other bills.
    - the danger that your relationship may fail so yu need to sell prematurely - you may end up in negative e5quity and ow4e the bank thousands even after handing the keys back.
    - as in my case several years down the line I spill and had to pay my ex half the profit on the house if sold or extend the mortgage.

    Looking back I did make money on my home but lost a lot too. Luckily I was able to chip away at the mortgage while I was working and became mortgage free a few years before having to take medical early retirement.

    I feel for you as having ae roof over your head is ae basic needful all of us. At least nobody can kick me out of my own home and even today it earns its keep as I can let bedrooms out when I need extra cash.

    I think this place looks ideal - walk-in shower, 2 beds, garden shed for storage . . . https://www.onthemarket.com/details/2964315/ you could offer £90,000 and get it for £94,000. Ask the local Housing Association if they would buy it on your behalf so you would pay them rent based on £47,000 and get a mortgage for £47,000- think creatively and be cheeky - they can only say no!

  3. #3
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    I got a mortgage nearly 2 yrs ago with Nationwide. They would not accept my PIP award at the time as contributing to my income. It was an award for 4 yrs and they would only accept 5 yrs or more. I've just recently applied for additional borrowing on the mortgage to build an extension. I have been told this guidance has been updated and they accepted the PIP this time. Every bank is different and you may need to shop around and ask the mortgage consultant the specific question. Or it may be worthwhile using a broker, you just need to make sure they are a 'whole of market' broker who have access to all deals. Best of luck xx

  4. #4
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    thank you Kaff79, very helpful

  5. #5
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    I was working full time and disabled my husband was getting JSA they included his jsa in the calculation for income, however our mortgage was very small as I had a lump sum from an insurance claim. 10 years later I was a full time carer to my disabled son and hubby worked full time they included my carers allowance as income. Both mortgages were through nationwide whom we had always banked with.
    Just shop around. I dont know how they calculate things now a days but at that time it was usually 2.5 times your annual gross income with a few stretching to 3 times, I heard during the years before the credit crunch they were giving 5 times! No surprise people couldnt keep up thevpayments. Good luck
    Ps we always had repayment mortgages (I believe endownment ones are now abolished anyway)
    Are you saving into any of the special accounts for first time buyers? I know nationwide have one.

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