[Eloise 1987]

I am on DLA and will be getting £300 per month for the rest of my life indefinitely, I'm looking at buying a house in the region of £50,000 (quite cheap near to where I live) I have enough for the 10% deposit (£5000) , I assume if I pay over 20 years, repayments per month will work out approx £220 per month, I will always have the money in indefinitely to pay the mortgage each month but will the mortgage people look at my financial situation of only £300 per month and refuse me even though I can always make the monthly payments or do they not take your financial position into account?

[Illusionary]

(Original post by Eloise 1987)
I am on DLA and will be getting £300 per month for the rest of my life indefinitely, I'm looking at buying a house in the region of £50,000 (quite cheap near to where I live) I have enough for the 10% deposit (£5000) , I assume if I pay over 20 years, repayments per month will work out approx £220 per month, I will always have the money in indefinitely to pay the mortgage each month but will the mortgage people look at my financial situation of only £300 per month and refuse me even though I can always make the monthly payments or do they not take your financial position into account?

Your financial position/credit history would most likely be fully considered, yes, but I'm afraid that no lender is under any obligation to extend a mortgage to you if you don't fit with their criteria for offering one. Have you factored in the likely interest rate into your figure of £220/month? I'd suggest that a lender is likely to expect that you could quite easily have monthly outgoings in excess of £80 - that seems very low!

[Eloise 1987]

(Original post by Illusionary)
Your financial position/credit history would most likely be fully considered, yes, but I'm afraid that no lender is under any obligation to extend a mortgage to you if you don't fit with their criteria for offering one. Have you factored in the likely interest rate into your figure of £220/month? I'd suggest that a lender is likely to expect that you could quite easily have monthly outgoings in excess of £80 - that seems very low!

No, I mean the £300 is spare cash, my outgoings will be out of other money such as wages, the £300 is and always will be spare cash.
What do you think the interest per month on £220 would be?

[OU Student]

(Original post by Eloise 1987)
I am on DLA and will be getting £300 per month for the rest of my life indefinitely,

You are aware it's all changing next year?

[Eloise 1987]

(Original post by OU Student)
You are aware it's all changing next year?

What is changing next year?

[Illusionary]

(Original post by Eloise 1987)
No, I mean the £300 is spare cash, my outgoings will be out of other money such as wages, the £300 is and always will be spare cash.
What do you think the interest per month on £220 would be?

To take the view that a lender could well do, how can you be sure that the £300 will always be 'spare'. For example, you might be out of work?

Over 20 years, there's no telling how the interest rate might vary. A calculator such as this may be helpful as a guide, though: http://www.bbc.co.uk/homes/property/...lculator.shtml

[Illusionary]

(Original post by Eloise 1987)
What is changing next year?

See here: http://www.direct.gov.uk/en/MoneyTax...ople/DG_201317

[PinkMobilePhone]

It's highly unlikely that you will be eligible for a mortgage if you are not in full time employment - either as an employee, or as self employed.

[Eloise 1987]

(Original post by Illusionary)
To take the view that a lender could well do, how can you be sure that the £300 will always be 'spare'. For example, you might be out of work?

Over 20 years, there's no telling how the interest rate might vary. A calculator such as this may be helpful as a guide, though: http://www.bbc.co.uk/homes/property/...lculator.shtml

what does interst only mean?

[Illusionary]

(Original post by Eloise 1987)
what does interst only mean?

Just that - you'd only be paying off the interest on the loan each month and not any of the actual amount borrowed would; the expectation usually being that repaying that at the end of the term would be covered by some other means.

http://www.direct.gov.uk/en/moneytax...es/dg_10014973

[Ski Bum]

(Original post by Eloise 1987)
what does interst only mean?

you only pay off the interest on the mortgage not the mortgage it's self.

[CurlyBen]

I think the normal guideline is mortgage lenders won't lend more than 3 times your salary, so you'd need to be earning at least £15,000 a year for a £50k house with a 10% deposit.

[cl_steele]

(Original post by Eloise 1987)
I am on DLA and will be getting £300 per month for the rest of my life indefinitely, I'm looking at buying a house in the region of £50,000 (quite cheap near to where I live) I have enough for the 10% deposit (£5000) , I assume if I pay over 20 years, repayments per month will work out approx £220 per month, I will always have the money in indefinitely to pay the mortgage each month but will the mortgage people look at my financial situation of only £300 per month and refuse me even though I can always make the monthly payments or do they not take your financial position into account?

i think it really depends on your income [if you have one?] on top of that, the higher your income the better your chances of getting a mortgage. As illusionary said they take in many factors; credit history, income, age etc. etc. when considering whether or not to give out a mortgage but considering the current climate and that loan approvals are going down i'd suspect your chances may be somewhat slimmer, i could be wrong though

[OU Student]

(Original post by Eloise 1987)
What is changing next year?

DLA. The criteria is changing completely.

[Eloise 1987]

(Original post by OU Student)
DLA. The criteria is changing completely.

But I was awarded it indefinitely 5 months ago, Why do they award people like me it indefinitely then 5t months later state that they are taking it away and you have to apply again????

absolutely disgraceful!!

[OU Student]

(Original post by Eloise 1987)
But I was awarded it indefinitely 5 months ago, Why do they award people like me it indefinitely then 5t months later state that they are taking it away and you have to apply again????

absolutely disgraceful!!

Read the paperwork you were given. It says they can review it at any time.

[callum9999]

(Original post by Eloise 1987)
But I was awarded it indefinitely 5 months ago, Why do they award people like me it indefinitely then 5t months later state that they are taking it away and you have to apply again????

absolutely disgraceful!!

The government are handing you free money - I hardly think that's reason to complain about how "disgraceful" they are... If you're able to work, then surely one application process in 1-3 years time isn't going to be a major burden on you? (And no, I'm not being blasé about it - my family heavily rely on DLA payments - but I am personally grateful to receive help as opposed to demanding it as a minimum).

[master roflcopter]

(Original post by Eloise 1987)
But I was awarded it indefinitely 5 months ago, Why do they award people like me it indefinitely then 5t months later state that they are taking it away and you have to apply again????

absolutely disgraceful!!

My mum got it a couple of months ago, and they only gave her it for a year because it was going to change soon, which seems sensible to me as at least she knows she'll have to reapply. But it is in the literature about it that they can change it at any time, so they aren't under any obligation to specifically tell you it's going to change soon, and in your case they've obviously just used current procedure, which you can't really call 'disgraceful'.

If you were awarded it indefinitely, I'd say you probably have a fair chance of getting it under the changes next year as well, but just be aware that this may not be the case (and if it is, the amount may differ), so I wouldn't plan things financially on the basis of always having that money as income.

Obviously I don't know your individual financial circumstances, but of course you can be denied a mortgage if you don't have enough income- it would be irresponsible not to.

[OU Student]

(Original post by callum9999)
The government are handing you free money - I hardly think that's reason to complain about how "disgraceful" they are... If you're able to work, then surely one application process in 1-3 years time isn't going to be a major burden on you? (And no, I'm not being blasé about it - my family heavily rely on DLA payments - but I am personally grateful to receive help as opposed to demanding it as a minimum).

eh? DLA isn't given to people who can't work.

[minimarshmallow]

(Original post by callum9999)
The government are handing you free money - I hardly think that's reason to complain about how "disgraceful" they are... If you're able to work, then surely one application process in 1-3 years time isn't going to be a major burden on you? (And no, I'm not being blasé about it - my family heavily rely on DLA payments - but I am personally grateful to receive help as opposed to demanding it as a minimum).

Although I agree with this, my mum was on DLA till they (wrongly) found her fit for work last month; the fact was that he was told 'indefinitely' when it isn't true means that someone has messed up and told him the wrong information. I don't agree that it's a 'disgrace' to have to reapply if those are the rules, but it is a disgrace to be told that it's indefinite if it isn't - he should have been told the truth!