We all know that living with a long-term illness often comes with a range of challenges. What many people don’t realise is that it creates financial hurdles too. As chronic conditions often impact on a person’s ability to work, they can have a serious effect on personal finances. As a result, mortgages can be harder to secure and home ownership more difficult to achieve for people with long-term illness and disability.
Everyone who applies for a mortgage will have their income assessed. Banks will base their loan offer on your level of income and on how secure they believe this income is. If your illness hasn’t impacted on your ability to work, and you don’t expect it to in the near future, securing a loan should be relatively straightforward. Simply apply for your loan and your application should proceed as normal.
However, if you believe your illness will soon affect your ability to earn, your lender may think twice before offering you a loan. You’re required to tell your lender about anything you’re aware of that may impact on your income. If you don’t inform your lender about your illness now, you could end up in hot water further down the line.
A lot of people living with disability and long-term illness rely on benefits. However, as @scope says, “If your income consists solely of benefits, it will be very difficult to secure a mortgage.” Before being approved for a loan, you have to pass rigorous affordability checks. If benefits make up the bulk of your income, you’re unlikely to meet the affordability criteria prescribed by the banks.
How to get a mortgage when living with a long-term illness
If you want to get onto the property ladder but are worried a long-term illness might scupper your chances, you need to get expert advice as soon as possible. An experienced mortgage advisor will be able to assess your finances and explore the financial products that might be available to you. If they find a loan you may qualify for, they’ll be able to help you put your application together and walk you through the various steps involved in securing a mortgage.
In some cases, your advisor may suggest ways in which you can improve your financial situation in order to make yourself more appealing to lenders.
Getting expert advice is key to securing a loan for people living with long-term illness. Get in touch with a member of our expert team today, or explore the information on our site to find out more.
Please be aware that by clicking on to the above links you are leaving the Perception Finance Limited website. Please note that Perception Finance Limited are not responsible for the accuracy of the information contained within the linked site(s) accessible from this page.
Written by: Andrew Page