When someone living with a disability approaches the idea of home ownership, their first thoughts are not just about affordability. They often have other concerns, like ‘Will I be treated fairly?’, ‘Will my benefits count as income?’, ‘Will the system work for me or against me?’
As brokers and lenders these questions should matter deeply, as the people with disabilities can and do get mortgages. But the process is often less accessible, more complex, and fraught with misunderstanding.
Research indicates that ‘People with disabilities in the UK take on average 5.72 months to complete on their first home purchase compared to 4.97 months for those without disabilities. This extended timeframe suggests additional hurdles with the process’ (Skipton Building Society, Dec 2022)
A significant portion of disabled individuals rely on benefits as their primary source of income. While many lenders consider long term disability benefits in their affordability assessments. The acceptance criteria can vary widely. Some lenders may only accept a percentage of these benefits and others might require supplementary income. (USwitch Aug 2023)
What can we do better?
Recognise that income looks different
Not every customer has a salary, and this does not make them less credit worthy
Personal Independence Payment (PIP), Employment and Support Allowance (ESA) and some elements of Universal Credit and other long term disability benefits can be stable, reliable sources of income.
Consistency and sustainability are key concerns for the lenders, more than whether the income comes from a job, benefits or another source.
Understand the support that exists
There are specialist lenders, brokers and schemes that cater to applicants with disabilities.
Options like HOLD (Home Ownership for People with Long-Term Disabilities), Shared Ownership, and Support Mortgage Interest are underused and underpromoted.
Prioritise Inclusive Advice
This goes beyond product knowledge. It is about listening carefully, removing assumptions and communicating with empathy.
A one size fits all approach will not work and should not be expected to!
Turning Challenges into opportunities for change
Many disabled customers don’t even make it through the initial enquiry stage because they are told no too quickly or are not guided through the complexities of benefit-based affordability.
That’s not just a missed opportunity for business. It is a missed opportunity for someone’s future.
It is time to ask: Are we removing barriers or reinforcing them?
Inclusive lending is not just about regulation or compliance.
It’s a commitment to fairness, dignity and doing the right thing
We can create real change not just in the products we offer, but through the way in which we listen, communicate and support
We need to do more to open doors and support those who need a bit more understanding and expertise. Vulnerability is not a barrier to lending- it’s a call to raise our standards.
