Learning to live with a mortgage

While getting together the money to buy a home may be a struggle, it is something most of us expect to be able to do at some point in our lives. But for those with a physical disability or a learning difficulty, buying your first home can seem impossible.

Fortunately an increasing number of lenders are getting involved in schemes designed to help these groups get a mortgage and find a place of their own.

Bromford Housing Group, a Midlands-based housing association, has developed Home Ownership for Learning Difficulties (Hold), a scheme designed to help people with learning difficulties get on the property ladder.

Ann Sullivan, Bromford's head of innovation, says many people with learning difficulties do not have access to the same kind of income as those without learning difficulties. They may also have limited life skills such as being unable cook for themselves, or have poorer timekeeping, household or financial skills.

More often though, says Sullivan, it is concern from family and friends that provides the real hurdle to homeownership. "They are good intentions," she says, "they are concerned their child will be vulnerable ... But we all need to take risks, supported and encouraged by those nearest and dearest to us."

Bromford's Hold scheme is similar to shared home-ownership schemes where a buyer is able to purchase between 25% to 75% of the property and pay rent on the rest. But unlike shared ownership, they are not given the opportunity to increase their stake to 100%.

There are good reasons for that says Sullivan: "It's important that the person never staircases up to own 100% of their property, because we as Bromford use that retainer in order to maintain some responsibility for structural repairs."

This means Bromford can keep the property in good order. "This takes the stress of owning the property away from the owner and also means that the family has some peace of mind too," says Sullivan.

Sullivan adds that most people with learning difficulties will have a social worker who visits every week. "It is important the person has a care package in place, to help the person to develop the life skills they need to cope with all the activities of being a homeowner - budgeting, bill paying, neighbour mediation, sign-posting to other services and so on."

On top of any stamp duty on the property the scheme costs £3,000 to enter, which covers legal fees and the fees associated with setting up the mortgage, which is provided by Kent Reliance building society.

Unlike a standard mortgage the term is 45 years, and it can be renewed once so it can last 90 years if necessary. The maximum mortgage is £100,000.

The scheme is currently limited to people on very low wages and benefits, with the Department of Work and Pensions providing some funding to help. But Bromford is looking at ways to get round this and expand the scheme to help anyone with learning difficulties.

This type of arrangement is not new, but it is the first time a formal scheme has been offered. What is also different is that the housing association is trying to make all of its properties available to anyone to buy, regardless of their disability. Sullivan says: "We are starting from the principle that, just because you are disabled, that should not limit your choices."

Sullivan points out that family, and more so, social-worker support is necessary for the scheme to work. She says: "It's important their family support them. To encourage and support them, help them move, maybe help financially with start-up costs, help the person choose their furniture, decoration, enthuse with them."

In most cases it is parents who have helped establish their children in their new home. In this respect, Sullivan claims, it's not much different from more orthodox ways of getting on the property ladder.

David Abbey, director of My Safe Home, a mortgage adviser that specialises in helping those with learning difficulties get mortgages, has been closely involved with helping develop the Hold scheme. He says: "If you go into a high-street lender and say you haven't got a job and you're not likely to ever get a job a typical lender will turn you away.

"But there are services, like ours, that are able to get traditional lenders to package up home loans for people who might otherwise find it tough to buy a home."

Ray Boulger, senior technical director at mortgage broker John Charcol, says that lenders are becoming more flexible when it comes to allowing those with learning difficulties to borrow. "A lot of mortgage lenders operate guarantor schemes, where a parent can pay, or act to pay if needed. But other elements, such as the care package included in the Hold scheme is what makes it unique."

Sullivan says that before someone decides to buy they should consider the location and choose an area where they won't be isolated. "A place near to people they know and any clubs or groups they attend. They also have to consider the future - do they want to live alone or are they likely to get married."

Useful links

Bromford Housing Group
www.bromford.co.uk