Dudley Building Society has brought out a mortgage product linked to the Home Ownership for People with Long-Term Disabilities (HOLD) scheme to help those with long-term disabilities get on the housing ladder.
It builds on a relationship with MySafeHome, who pioneers the initiative. HOLD is a shared ownership scheme that allows disabled individuals to buy a property of their own with help from a housing association.
A home can be purchased from the open market or as part of a housing association development, and a share between 25 and 75 per cent is usually bought using an interest-only mortgage. The housing association the buys the remaining share and charges them rent, which is paid for by housing benefit.
The mortgage is paid through the Support for Mortgage Interest (SMI) scheme, and an additional top-up is paid through other benefits. There are also other qualifying criteria around age, employment, mental capacity and support and care package in place.
The rate is nought per cent above the SMI rate for the mortgage term, and the product has a maximum share of 95 per cent loan to value (LTV).
The Dudley Building Society tracks the SMI directly, so borrowers do no need to top up their mortgage payments and is available across the West Midlands.
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James Paterson (pictured), chief executive at Dudley Building Society, said: “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.
“The impact that homeownership has for borrowers with long-term disabilities is life changing, as it provides them with valuable independence.”
David Abbey, managing director at MySafeHome, added: “The launch of this new mortgage is a true testament to Dudley Building Society’s commitment to support all members of the various communities it serves, and the society should be justifiably very proud of giving people with disabilities such an incredible, life changing opportunity.”