Where there is more than one disabled person in a household, or where there is one person with significant benefits who only requires a small mortgage, disability benefits alone may prove sufficient to repay a mortgage. The size of the mortgage will depend upon:
There are many benefits that a disabled person could be entitled to and it is difficult to calculate entitlement correctly. It is important that your client has a benefits assessment by a welfare benefits specialist to ensure they are receiving all they are entitled to.
Different disabled people have different living styles and use money in different ways. Some benefits or payments may also be restricted in what they can be spent upon. It is very important that the affordability of the mortgage, now and in the future, is calculated. Completing an income and expenditure calculator may help.
Your client will need a mortgage lender who accepts benefits in the same way as earned income. Both repayment mortgages and interest-only mortgages will be an option. Loan to value levels should be no different from that offered for a mortgage on employment income.
Reading the case of the McDees from Inverness may help explain this option.
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