Getting a mortgage if you are disabled

Yes, absolutely. Mortgage lenders cannot discriminate against you because of any disability you may suffer from – this covers all forms of disability, including physical and mental. Lenders should decide on your mortgage application as they would from anyone – based solely on your financial situation and ability to repay.

However, if you depend solely on benefits for your income you may find a mortgage more challenging to arrange because fewer providers will accept this as a 100% source of income. But this isn’t to say it’s impossible.

You can also get independent advice and help from a mortgage broker. They have an in-depth knowledge of the market and can advise you on the whole range of mortgage lenders and products that can help you most.

There are also Government schemes and independent organisations who can offer advice and even practical help.

Yes, there are mortgage lenders who are happy to consider applications if you are on state benefits. However, there are also providers that will not consider benefits as a form of income, only take into account a percentage of this income or only take these benefits into account if you are employed or retired.

With any mortgage application, the lender is primarily concerned that you can afford the repayments. All applicants – disabled or not – must pass strict affordability checks.
Affordability checks are designed to assess your ability to continue repaying your mortgage if circumstances were to change, such as interest rates rising. To find out more about these, take a look at our How much can I borrow for a mortgage guide.

If you can pass these affordability tests, then there should be no problem with you obtaining a mortgage. However, you may have to shop around to find a lender who will consider a mortgage if your sole income is benefits-based. Here, it’s a good idea to use the services of a mortgage broker – these professionals know the mortgage marketplace and will know what lenders are open to applications from people on benefits. This can help you avoid wasting your time applying to mortgage lenders who aren’t suitable.

There are several Government benefits that some mortgage lenders will consider as part of your income when assessing the affordability of your application:

• Attendance Allowance
• Carer’s Allowance
• Child Benefit
• Child Tax Credit
• Disability Living Allowance (DLA)
• Incapacity Benefit (IB)
• Industrial Injuries Benefit (IIB)
• Maternity Allowance
• Pension Credit
• Severe Disablement Allowance
• Widow’s Pension
• Working tax credit.

There are Government-funded schemes and independent organisations that can help disabled home-hunters, including:

• HOLD (Home Ownership for People with Long-Term Disabilities) This is available for people in England only and offers a route to shared home ownership between a disabled person and a housing association. More info can be found on the HOLD official Government website.
• My Safe Home This organisation helps people with complex and profound disabilities to own their own home – again through a shared ownership scheme. Find out more on the My Safe Home website. 

For more in-depth information on buying your first home, take a look at our First-time buyer’s guide to getting on the housing ladder or see what deals are currently available on our first-time buyer mortgage comparison charts.