Getting a mortgage on sickness/disability benefit. Indirect discrimination?

[GrooverGrover]

Hi,

 

I am currently on ESA Support Group and also have an award for DLA which doesn't technically need to be renewed until over five years from now.

 

I have the right to buy and could buy my current home for about 35k. I have some savings and may also be able to borrow some money from relatives to add to my deposit.

 

I cannot find a single lender that's willing to lend me any money toward this on a secured basis whatsoever. Iroonically they all seem to be falling over themselves to lend me money on credit cards on an unsecured basis but not enough to buy the property.

 

It seems to me they're basing this refusal to lend on their 'affordability criteria', ie- that this lending is un-affordable because I'm not in receipt of any income from paid employment. I find this utterly laughable because at current rates the mortgage would cost about £100/month and could be fixed for between five and ten years.... Also that the mortgage interest would be paid by the DWP under SMI anyway.

 

I suspect this is indirect discrimination, in that they are applying this rule to all applicants and it's indirectly discriminating against disabled people who are much less likely to have income from work owing to the disabilities that they have.

 

I just wondered if anyone here could indicate as to the likelihood of this being deemed indirect discrimination under the Equality Act if it were taken to court and any recent judgements that may be relevant, case law etc?

Edited August 31, 2016 by GrooverGrover

[Old Cogger]

foundation of lending criteria comes to mind - even I had a full time job and O.H. we were just 3 payments in arrears due to robbery at work and fractured skull and received just basic sick pay and housing association refused application,

 

went onto housing market through normal channels i=within few months, your case would be very weak unfortunately due to your circumstances, but also be honest why eventually the Course to Public Funds be used when at the start you indicate the purpose, no lender will break funding rules?? sorry but out of order.

 

 

It seems to me they're basing this refusal to lend on their 'affordability criteria', ie- that this lending is un-affordable because I'm not in receipt of any income from paid employment. I find this utterly laughable because at current rates the mortgage would cost about £100/month and could be fixed for between five and ten years.... Also that the mortgage interest would be paid by the DWP under SMI anyway.

 

above last paragraph says it all!

[silverfox1961]

Hi

Not discriminating at all. Nobody who is in receipt of state benefits as their ONLY source of income will be allowed a mortgage as benefits are paid to assist in day to day expenses.

Housing benefit/Council Tax Benefit is paid by the state as you need a roof over your head.

 

If you already had a house and paying a mortgage, the Government will only help with the interest on the mortgage, not the mortgage itself.

 

Would you expect the Government to buy your house for you?

 

Another thing. If you have savings over 6K then you should be informing the DWP of this.

[GrooverGrover]

I forgot to make clear that I don't have any outstanding debts. I have a good/excellent credit score. I have never defaulted on any money I've borrowed and haven't missed a payment on the credit cards I've used for the last 15 years.

 

Thanks for your response, I can't find the criteria you refer to. Is it online somewhere?

[GrooverGrover]

Regards the saving threshold. I am not over the 6k threshold and never have been. I have some savings yes, but nowhere did I state I had more than the threshold.

[silverfox1961]

Regards the saving threshold. I am not over the 6k threshold and never have been. I have some savings yes, but nowhere did I state I had more than the threshold.

 

Which is why I said 'IF'

 

I have found something that may work but it is quite convoluted and you still won't own your home.

 

http://www.housingandsupport.org.uk/buying-a-house-using-support-for-mortgage-interest

[GrooverGrover]

No problem. Thanks

 

I also get housing benefit too, so (if you exclude the right to buy discount) owning my own home would save the government money in that way as it would remove me from their housing benefit books.

[AndyOrch]

Hi,

 

It seems to me they're basing this refusal to lend on their 'affordability criteria', ie- that this lending is un-affordable because I'm not in receipt of any income from paid employment. I find this utterly laughable because at current rates the mortgage would cost about £100/month and could be fixed for between five and ten years.... Also that the mortgage interest would be paid by the DWP under SMI anyway.

 

 

No problem. Thanks

 

I also get housing benefit too, so (if you exclude the right to buy discount) owning my own home would save the government money in that way as it would remove me from their housing benefit books.

 

Not entirely but the DWP will still be paying for you ?

[GrooverGrover]

About £30 SMI versus £400 in housing benefit.

 

They wouldn't be 'buying the home for me' either, I'd personally be taking on a mortgage debt which I would always be liable for.

 

I admit though that the right to buy would in a way.

[Old Cogger]

foundation of lending criteria comes to mind - even I had a full time job and O.H. we were just 3 payments in arrears due to robbery at work and fractured skull and received just basic sick pay and housing association refused application,

 

went onto housing market through normal channels i=within few months, your case would be very weak unfortunately due to your circumstances, but also be honest why eventually the Course to Public Funds be used when at the start you indicate the purpose, no lender will break funding rules?? sorry but out of order.

 

 

It seems to me they're basing this refusal to lend on their 'affordability criteria', ie- that this lending is un-affordable because I'm not in receipt of any income from paid employment. I find this utterly laughable because at current rates the mortgage would cost about £100/month and could be fixed for between five and ten years.... Also that the mortgage interest would be paid by the DWP under SMI anyway.

 

above last paragraph says it all!

 

 

By the way the whole episode cost us £10,000 to-wards a deposit on another property, hence the Housing Assn would not pay to-wards deposit just because of the 3 missed payments due to lack of Income sustained after a criminal offence against me.