How does it work?
These specialist mortgages for people with disabilities are interest only, so the capital being borrowed is repaid when your home’s eventually sold. The monthly interest payments are mainly paid by Support for Mortgage Interest (SMI). You buy a share of your property and we retain the rest, charging you rent on this portion paid for direct to us through your Housing Benefit.
Costs and affordability
You’ll need a 10% deposit to buy your share of your new home. As the biggest mortgage that can be arranged is currently £100,000 this could be up to £10,000. Obviously the maximum budget for your home will be a lot higher than this when you take into account our investment, some home owners with disabilities have been able to purchase Shared Ownership properties of up to £400,000. You’ll also need c. £7,000 to pay for the various fees associated with buying a property. The long-term affordability of your home ownership will be very carefully assessed from the outset to ensure that you’ll be able to afford to live there for as long as you wish.
Do I Meet the Eligibility Criteria?
To be eligible to apply for this type of specialist mortgage product you must be in receipt of the Enhanced or Standard Daily Living Personal Independence Payment (PIP) or the Disability Living Allowance (DLA) equivalent and:
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18+ years old with clean credit history and no outstanding debts
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In receipt of the Universal Credit Limited Capability for Work And Work Related Activity (LCWRA) element or ESA Support Group payments
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Unable to work in conventional employment for more than 12 hours per week
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In possession or in the process of arranging a suitable Care & Support package, either with a Local Authority, a private care provider or your family
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Able to prove your mental capacity or have Court of Protection or Lasting Power of Attorney in place
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Looking to live on your own – you can share, but with caution
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Able to put down a deposit and pay fees associated with buying your new home – this costs c. £15,000 - £20,000 (this includes a minimum 10% deposit on the property PLUS getting you ready for home ownership and ensuring it’s sustainable) AND able to contribute to your housing costs of c. £30 per week.
NB: Mortgage products and deposit requirements can and do change, so please contact specialist mortgage brokers, MySafeHome Limited, to find out the latest information via enquiries@mysafehome.info or 02476 402211
FAQs
How long will the process take?
Each case will be different, but the mortgage application and home buying process generally takes several months to complete from start to finish.
I'm an appointee for the applicant. Can I sign the paperwork for the house purchase/mortgage application for the applicant or do we need to ‘appoint a deputy’ via the Court of Protection/Guardianship office?
You'll need to be appointed as a Deputy.
Can this work for people with high support needs?
Yes, many people with profound and complex needs have bought a home of their own.
What is the maximum mortgage allowed?
Once you've completed a Pre Mortgage Application Form you’ll be given an indication of how much you can borrow and your maximum property budget (this cannot be guaranteed until your application's been approved by a lender but it will give you a good idea of what may be possible).
Does the applicant need to be able to understand all of the details around home ownership/mortgages?
No, but if they don't they'll need to apply to the Court of Protection (COP) to appoint a Deputy to act on their behalf and this could take a number of months.