Mortgage on Carers Allowance
If you are reading this article, you may be in a care job in the UK and looking for mortgages for carers. At needingadvice.co.uk we aim to work with all the types of mortgage lenders including care home loans.
As we know that care section of the UK is dominated by overtime, unsociable hours and shift work pays. This means that many care workers have to juggle their jobs around their care commitments. As such they often find themselves having to take time off work to look after their loved ones. The problem is that when it comes to getting a mortgage, most lenders will not consider your current employment or any other circumstances which might affect your ability to repay the loan.
So what can you do? Well if you are currently employed as a carer then there are some options available to you. If you are self-employed then you could apply for a loan against your business profits. You would need to show how much money you earn from your carer role and how much profit you make from your own business. This option isn’t always suitable for everyone though as it requires a lot of paperwork and administration.
Another option is to use your personal assets to secure a carer mortgage. In order to qualify for a carer mortgage, you must prove that you are able to meet the repayment terms of the mortgage without putting too much strain on yourself or your family. To help you with this, you should keep an eye out for any financial products that will allow you to borrow money while still being able to afford to pay back the loan.
The final option is to apply for a carer mortgage through one of our recommended lenders. If you are interested, you can always our team of independent mortgage brokers.
Can I get a mortgage if I’m a foster carer?
Yes, you can get a mortgage as a foster carer but you may need to understand some other details.
As a foster carer is different from other regular occupations, you may need to contact a foster carer mortgage broker with access to a range of suitable lenders.
You may also want to check whether you can claim certain tax credits or discounts. These include:
• Childcare Vouchers – if you are caring for children under the age of 16.
• Housing Benefit – if you are living in social housing.
• Carers Allowance – if you are caring full time for someone who receives a disability benefit.
If you are a foster carer, you may be eligible for a discount on your mortgage payments. However, you will need to provide evidence of your care responsibilities.
What impacts your application for a loan if you get one on benefits?
People who are getting help from social security should be able to buy houses. Mortgage lenders usually cap loans at 4.5 times income. People on benefits can still afford to pay off their mortgages if they work hard. Lenders are not allowed to refuse to lend to people who are receiving benefits. However, lenders may ask about the length of time you’ll be receiving benefits. For example, if you’re going to be receiving disability payments for a short period of time (for example, six months), lenders might ask for proof that you’ll be continuing to receive these benefits after the term ends.
Government schemes for those on carers allowance
There are government schemes designed specifically for those who are looking to purchase homes while still receiving carer’s allowance. The most popular scheme is called the ‘Carer’s Mortgage Scheme’. It allows people to take advantage of low-interest rates and flexible payment options. You can find more information about the Carer’s Mortgage Scheme here. There are also other government schemes available such as the ‘Help to Buy’ scheme. This gives people who have been made redundant due to redundancy or illness the opportunity to purchase a new home.
Some Facts about Carer Mortgages in the UK
Many millions of carers’ benefits go unclaimed every year in the UK. In cases, where an individual is getting any other benefit such as a state pension, certain income replacing benefits may don’t get a carer’s allowance. So it is important to know how many individuals are actually claiming carer’s allowance. According to the latest figures from HMRC, there were over 5 million claimants of carer’s allowance in 2015/16. The majority of people who are claiming carer’s allowance are women. Also, it has been estimated that around 1.2 million people in the UK are currently taking care of a disabled person.
The average cost of a house in the UK is £240,000. If you are getting a carer’s allowance then this amount could be reduced by up to £1,200 per month.
Carer’s allowance is paid to carers of disabled people and older adults. It is also given to carers of children. A carer can claim a carer’s allowance even if he or she doesn’t live with the person being cared for. In order to qualify for a carer’s allowance, you must be providing unpaid care to a disabled person or elderly adult. If you are interested in starting a mortgage application for a carer, you can always contact a mortgage adviser for financial advice.
Next Steps – Mortgage For Carers
As a foster carer who is looking for a mortgage, you can always consult an expert mortgage broker before starting your mortgage application. An experienced adviser with years of experience could help you to connect with a specialist mortgage lender who can offer you a better mortgage deal on a mortgage.
If you do decide to apply for a mortgage, make sure you check out our guide on How to Apply for a Mortgage. We’ve included some helpful tips and advice on what you need to consider when applying for a mortgage.
FAQs – Mortgage for carers
What is a universal credit income?
Universal Credit is a brand name used for the government’s flagship welfare reform programme. Universal Credit replaces 6 existing benefits with one monthly payment. Universal Credit aims to simplify the system and increase its effectiveness.
Can I get a mortgage as a carer if I am also getting a universal credit income?
Yes, but you will need to prove that you are getting enough money from Universal Credit to cover the costs of your mortgage repayments.
What are the different housing benefits for a carer in the UK?
There are three main types of housing benefits for a carer: These all differ slightly in their rules and conditions.
What is a carer’s allowance?
A carer’s award is a tax-free cash sum that is paid to eligible carers of disabled people or older adults. This includes those caring for children, young people or vulnerable adults. You can only receive a carer’s allowance if you are providing unpaid care to someone else. If you are interested in getting a bit of mortgage advice on a carer’s allowance, you can always contact our team of expert advisors who can help you with best mortgage deal.
Can I get a Mortgage on child benefits in the UK?
Yes, but there are very low chances of getting a mortgage on child benefits income. Most bank lenders will reject your loan application. At the same time, some potential lenders may add your child benefit income under consideration for your loan application. If you are interested in getting a mortgage on benefits, you can contact the team of mortgage advisors.
Can I get a mortgage as a carer if I am also getting a universal credit income?
Yes, but you will need to prove that you are getting enough money from Universal Credit to cover the costs of your mortgage repayments. Feel free to contact an independent mortgage adviser to know more about allowance benefits.
Can I get mortgage on benefits?
Yes, you can get a mortgage on benefits if you are living in the UK and have been receiving government benefits such as Income Support, Jobseeker’s Allowance, Incapacity Benefit, Employment & Support Allowance, Long-Term Disabilities, Severe Disablement Allowance, War Pensions, Widowed Parent’s Allowance or Widow(er)s Pension etc.
There are many mortgage lenders that can help you to start on the property ladder with your income from benefits. These lenders will consider your income from benefits when they assess your affordability and risk profile. They will then offer you a suitable mortgage product which suits your needs.
If you want to find out more information about how to apply for a mortgage on benefits, feel free to contact us at any time. We would be happy to assist you with your mortgage enquiry.
What are the different ownership schemes for mortgages on benefits?
There are many mortgage schemes such as shared ownership schemes, pension credit mortgages, interest-only loans, fixed-rate mortgages, tracker mortgages, repayment mortgages, remortgages and buy-to-let mortgages. The choice of the scheme depends on your personal circumstances and financial situation. It is important to choose a mortgage lender that offers the right type of mortgage for your specific requirements.