Benefits income is not very secure, what happens if their benefits get cut in the future? We still have to go through their affordability assessment to make sure that all their disability benefits belong to them and that they can then use those to live on and to pay a little bit towards their mortgage. Some of them have never even had the ability to take out a credit card. They will have to satisfy a credit check, which can be tricky as most people who come to us don’t have any loans or debt. What other affordability criteria do they need to meet? That money usually comes from one of three sources: savings that the individuals have themselves, inheritance or – like a lot of first-time-buyers that we’re working with at the moment – the Bank of Mum and Dad would put that deposit down. They need to provide 5%-10% deposit to qualify for a HOLD mortgage depending on the lender. What kind of deposit do they need to put down? Our clients fall into the former group - the Support Group ESA - where welfare benefits are the sole source of their income and they will not be able to work in paid employment now or in the future. There are two groups within the ESA: the 'support group' - where the severity of your disability means that you will not be able to take up any work now or in the future, and the 'work-related activity group' which means that even though you have a disability, you will be expected to work with Jobcentre Plus over the next year or two with the aim of finding paid employment.ĭisabled people who fall into the latter group would follow the standard route of finding employment, saving up for a deposit and applying for a mortgage with one of the high-street mortgage lenders. They also need to be in receipt of Employment Support Allowance (ESA). The PIP equivalent of these would be the Enhanced or Standard Rate of Daily Living. In terms of eligibility, they need to be on the highest or middle rate of Disability Living Allowance – recently renamed Personal Independence Payment (PIP). What types of benefits do the disabled people need to receive to qualify for MySafeHome mortgage? To qualify for our help, these people need to be on the more complex end of the spectrum, permanently unable to work and in receipt of disability benefits. We help people with a full spectrum of needs, including people with learning disabilities and mental health issues.
These properties can come from the ‘open market’ via a traditional Estate Agent or be purpose-built by a housing association. We help disabled people with complex needs to purchase their own homes, typically through Shared Ownership, using a unique government-approved housing model known as HOLD (Home Ownership for people with Long-term Disabilities).
Peabody is talking to David Abbey of MySafeHome - mortgage advocates for people with disabilities - about how this all works. Many of these people are not able to work and have to rely on welfare but that shouldn’t stop them from having the opportunity to buy a home of their own.
In Britain there are over 10 million people living with a limiting long-term illness or disability, roughly 18% of the entire population.
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