Mortgages for disabled borrowers.

One of the main considerations for mortgages for disabled borrowers is how lenders assess affordability. When you apply for a mortgage the lender is required to perform an affordability assessment, which will take into account your income, financial commitments and outgoings in order to evaluate whether the mortgage is affordable both now and should future circumstances or interest rates change.

As part of this affordability assessment it is crucial that you find out what sources of income are accepted, as this can have a big impact on whether your loan will be deemed affordable or not.

At Suffolk Building Society, alongside 100% of employed, self employed and pension income we will consider up to 50% of income from Disability Living Allowance and Incapacity Benefit payments, subject to this being evidenced with benefit documentation and bank statements. For any tax credits, child benefit and/or maintenance payments we’ll accept 100% and for any income from investments this is calculated at 75% of the income. Generally we will be unable to accept benefit-only income, and will consider any applications on a by-exception basis.

We don’t operate separate mortgage products for disabled mortgage borrowers, so applicants can choose from our full range of mortgage deals using our mortgage finder.

Steve and Denise (not their real names) are both totally blind. Having rented for eight years, they decided that it was time to own their own home.

Like others with a permanent, severe disability, Steve and Denise rely on Disability Living Allowance (DLA). Having believed for many years that benefit recipients couldn’t apply for a mortgage at all, Steve conducted thorough research and discovered that in fact they can.

“When you rent, you’re throwing money away, and you have no security, “ says Steve. “We couldn’t afford to buy where we were living, even if our benefit payments were recognised as income. So we looked to relocate.”

With Steve’s research indicating we may be able to help, Steve spoke to us and we were soon able to proceed with the mortgage application. Moving home can be an ordeal even without a disability, so a little flexibility goes a long way.

“Settling into a new home is a big deal when you’re blind,” says Steve. “You need lots of support just to get to know the local area, which people don’t always appreciate. But at least the Suffolk made the process of getting a mortgage as painless as possible.”

Now Steve has a message for others in the same position. “If you have a severe disability and think you can’t get a mortgage, think again!” he says. “If you can, do your own research and find out what’s available. That’s how we went from not even considering a mortgage to part-ownership in less than three months.”