Dudley Building Society is launching a new mortgage loan that will be targeted at people who have long-term disabilities in order to improve their chances of buying a first home.
The product will be tied in with the Home Ownership for People with Long-Term Disabilities (HOLD) scheme, which was set up by MySafeHome. The purpose of the scheme is to enable people in that situation to buy their own home, with a housing association chipping in part of the cost and becoming co-owner of the property.
Dudley BS has forged a working relationship with MySafeHome, and this new product is the result of their link-up. It will allow long-term disabled people to buy anything from 25% to 75% of an open market or housing association property via a mortgage that comes with interest-only repayments. Whatever percentage is left is then acquired by a housing association, to which the individual will pay monthly rent using housing benefit.
Criteria to be suitable for one of these mortgage loans will be based on the care and support packages each individual has, as well as their mental capacity, work situation and age.
Dudley BS chief executive James Paterson told Mortgage Solutions that:
“The society is dedicated to supporting our communities, so the opportunity to provide mortgages for borrowers with long-term disabilities is something that we strive towards.”
He then added that home ownership was vital to their independence.
This is something that is important to advisors with CeMAP training too, so more products of this nature would be welcome.