Mortgages for Disabled People in the UK

Imagine finally finding the perfect home – wide doors for wheelchair access, a bathroom that works for you, a garden you’ve always wanted – but wondering if you’ll be able to get a mortgage.

According to recent government data, only around 42.4% of people with disabilities owned their homes in 2019, compared with 53.2% of non-disabled people in the UK.

This 11-percentage-point gap reveals a harsh truth: homeownership for disabled people in the UK is significantly harder to achieve, however it is absolutely possible.

The good news? The law is on your side. The Equality Act 2010 prevents mortgage lenders from turning you down based on your disability.

Over 23 major lenders across the UK will consider disability benefits as a form of income, with many taking certain disability benefits as primary income. 

Specialist schemes, such as HOLD (Home Ownership for People with Long-Term Disabilities), have helped people with disabilities to achieve homeownership in recent years.

This guide covers everything you need to know about securing mortgages for people with disabilities, including your rights, the support available, and practical steps you can take.

What UK Law Says About Disability and Mortgages?

The Equality Act 2010 is your strongest protection when applying for a mortgage. 

This law states that lenders must treat all applicants fairly and cannot reject you or impose stricter terms simply because you have a disability or long-term health condition.

This means lenders cannot ask you to provide a larger deposit, charge you higher interest rates, or require you to meet tougher criteria because of your disability status. They must assess you based on the same financial criteria they use for everyone else.

If your disability doesn’t impact your income, your ability to repay or other set criteria of the lender, it cannot be used as a reason to reject your application. This is the fundamental principle that protects disabled homebuyers across the nation.

How Many Lenders Accept Disability Benefits?

At least 23 major mortgage lenders in the UK will consider disability benefits as part of your income.

This includes household names such as Barclays, NatWest, and Halifax, as well as specialist lenders like Together, Foundation Home Loans, and Pepper. Some challenger banks, such as Tandem Bank, also accept disability benefits.

However, lenders don’t all treat benefits the same way. Some will count 100% of your disability benefits towards affordability, whilst others accept only a percentage.

This is why shopping around with a mortgage broker who specialises in mortgages for disabled people is crucial.

You can connect with the mortgage advisors we work with to get personalised advice.

Which Benefits Count as Mortgage Income?

The most commonly accepted disability benefits for mortgage purposes are:

Personal Independence Payments (PIP) which are accepted by most major lenders. These payments support people with disabilities who struggle with daily activities, and lenders view them as stable, long-term income.

Disability Living Allowance (DLA) is another widely accepted benefit. If you’re receiving the high or middle rate care component, lenders are more likely to accept this as a reliable source of income.

Employment and Support Allowance (ESA) can also be considered, although some lenders may require additional employment income to be reported alongside it.

To qualify, you must provide evidence that your benefits are expected to continue. 

Lenders typically request your benefit award letters, bank statements showing regular payments, and sometimes in very rare cases medical documentation to confirm the long-term nature of your condition.

Mortgages for Disabled People in The UK: The Affordability Challenge

Even with legal protection and willing lenders, disabled homebuyers face an affordability hurdle.

Lenders assess your ability to repay based on the mortgage amount being no more than 3 to 4.5 times your annual income (including benefits).

If your income is purely benefits-based and relatively modest, you may struggle to meet this threshold.

Recent data shows that 4% of disabled people were already behind on their mortgage or rent payments, double the 2% rate for non-disabled people. 

This reflects the real financial pressure disabled homebuyers face being on a lower income because of their disability.

Mortgages for Disabled People: Step-by-Step Guide 

1. Contact a mortgage advisorwho specialises in this area

The professionals we work with understand which lenders accept disability benefits and are familiar with the nuances of how different providers assess applications.

2. Gather all your paperwork before applying

You’ll need at least 12 months of benefit statements showing regular payments, award letters confirming your benefits and the expected duration, identification documents, and proof of your address. 

If you also work, bring recent payslips and employment contracts. Have your credit report downloaded and available, as the advisor may suggest ways to optimise it before submission.

3. Find the right lender

The advisor will then match your circumstances to the most appropriate lenders and submit applications strategically.

Rather than applying to multiple lenders simultaneously (which damages your credit score), they’ll target specific providers known to accept applications like yours. 

Once approved, you’ll move through the standard conveyancing process. 

HOLD Scheme: Shared Ownership for Disabled People

The HOLD scheme (Home Ownership for People with Long-Term Disabilities) is a government-backed programme designed specifically for disabled homebuyers. 

Instead of buying an entire property outright, you purchase a share of a home (between 25% and 75%) and pay rent on the remaining share held by a housing association.

This significantly reduces the deposit required and the amount you need to borrow for the mortgage.

For people with disabilities struggling with affordability, shared ownership becomes a realistic pathway to homeownership potentially through this scheme.

You can later increase your stake in the property through a process called “staircasing,” eventually owning it outright if you choose to do so.

To qualify for the HOLD scheme: 

• You must have a long-term disability and be over 18 years old
• You must also be in receipt of specific benefits: Personal Independence Payment (PIP), Disability Living Allowance (DLA), Universal Credit, Pension Credit, or Employment and Support Allowance (ESA)
• The property must either be already adapted or be adaptable to meet your access needs.

Frequently Asked Questions

Can someone on Personal Independence Payment (PIP) get a mortgage?

Yes, PIP can be included in your income assessment by some lenders, but approval is more likely if you also have other income or savings.

Read our detailed guide on how to get a mortgage on PIP for more details.

Will getting a disability benefit increase my eligibility for a bigger mortgage?

Not necessarily. Whilst disability benefits are considered income, most lenders cap the amount of your benefits that they’ll count towards affordability. So again, this will be lender dependent. 

Are there any potential grants available? 

Yes, several may exist depending on where you live.

Disabled Facilities Grants from local councils help with home adaptations up to £30,000. Some charities offer down payment assistance for disabled homebuyers.

Housing associations offering HOLD schemes sometimes contribute to legal costs. Contact your local council, charity commission, or specialist mortgage advisor to identify schemes you qualify for in your area.