Can we include the income we receive from the DLA towards our mortgage?

Posted on 3 March 2008

I have a house worth £130,000 with no mortgage. I am going to buy a house worth £200,000 with a mortgage. I am 69 and my wife is 64. We have a pension and get £218.25 weekly.  We are disabled and have DLA. I would like to know what mortgage we could get and the monthly repayments.  Would the money we receive from the DLA be included as well? Thank you for your help. Harry and Mery

Hello Mr Motakef,

As long as your disability allowance is not taxed, a lender would say that you have an annual income of £11,359. Normally a lender will allow you to borrow 5x income. You should try Norwich and Peterborough, Abbey, Alliance & Leicester, and Lloyds.

Some lenders are more generous and allow you this which is like an earned income, which would of course be the same as someone who earned about £15,000.  So they would say you can afford 5 x 15,000 which is £75,000.  If you need this much then try Accord Mortgages - they only take business through Mortgage brokers though.

My own advice cannot be specific to you, so you must speak to a Mortgage broker.  Charcol do not charge fees, so please call 0800 358 5560 so a Charcol broker can do a search for you for the right lender, and from that we can tell you the interest rate, and your monthly payments.

Best of luck.

Category: Mortgages in retirement

 

Answers provided in response to Ask Bea are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not neccessarily represent the views, positions, strategies or opinions of Charcol Limited. All comments are made in good faith, and neither Charcol Limited nor Bea will accept liability for them.

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