Written by Clair Bevan, Mortgage Advisor – CeMAP, CeRER, MLIBF
Clair has worked for Christchurch Mortgages since October 2021, and has 30 years experience in the financial industry both on and offshore. Claire joined the Different Strokes community in 2021 after her Mum had a stroke and recently reached out to us to share her knowledge of mortgages.
Is a mortgage possible if I’ve had a stroke?
This is a question that I’ve seen from clients who have experienced a stroke, or any life changing event. When you start the mortgage process, the lenders main priority is whether you can pay back what you borrowed. Some of the key areas they will look at are.
- Age – when are you planning on retiring?
- Salary/Income – this will need to be backed up with payslips/accounts
- Dependents – whether you have any financial dependents under 18, but also anyone dependent who is over 18
- Commitments – as an example, any credit cards, loans, HP, interest free payments
- Outgoings – Essentials (like food, petrol, travel, clothes), and non-essentials (entertainment, holidays)
- Have you had any bad credit history, missed payments, CCJ, IVA?
- Do you expect any changes to your income/outgoings in the next 2-5 years?
Now, we all know that this can change at any given minute, where is that crystal ball? A mortgage provider won’t necessarily ask about the state of your health, your broker should as they want to get the best overall picture so that they can help find the best solution for you. Be honest and upfront, that way there are no hidden surprises. So, if you had a stroke in 2019 for example, and you weren’t working for 12 months, that could have had an impact on your income and outgoings.
On the other hand, your income could have been protected through a generous employer sick pay, or through a form of protection such as critical illness/income protection that would have covered your mortgage and outgoings with a lump sum payment or for a specific period.
Some providers will also look at certain government benefits to include in supplementing your income or used as an additional income.
It’s your brokers job to conduct a thorough fact-find, their job then to find the best fit. The right lender, the right product, the best rate, that it’s affordable and that you fully understand your commitment. The process is the same for someone who hasn’t had a stroke. From a mortgage perspective I would always recommend being truthfully honest. Especially when it comes to whether you have any protection, or you’d like to also explore this as this is when you need to be very specific with your health background. From a lender’s perspective it always comes down to, if you can’t work, how will you pay your mortgage? A broker who is worth their weight in gold will guide you through this, and again it’s down to trust and honesty. They will be honest with you as to whether it is achievable.
What is the process?
The process is the same, whether you have had a stroke, or not. It’s all down to your ability to repay the mortgage, and whether what you are looking for is affordable. Can you pay it back? If your income stopped or was reduced during your recovery, this is where you will need to back up your income with proof.
If you’re employed, you will usually be asked to provide a minimum of 3 months’ payslips, and if you have been in your current position under six months, a copy of your employment contract. If you’re self-employed, then depending on the lender, you would be asked to provide between one and three years of accounts, the more you can provide the more options become available across the market. So the payslips or the accounts if self-employed will prove your income.
If you receive government benefits that supplement your income, you will need to provide your letter confirming you are in receipt of these. Many lenders will take some of the following into consideration when they calculate your mortgage affordability.
- PIP/DLA
- Attendance Allowance
- Child Tax Credit
- Industrial Injuries Benefit
- Pension Credit
- Widows allowance
- Carers Allowance
- Child Benefit
- Incapacity Benefit
- Maternity Allowance
- Severe Disablement Allowance
(Some of these have been replaced by Universal Credit)
You’ll also need to provide three months bank statements for any bank account that you have, including app-based banks such as Atom, Monzo, Starling.
A joint mortgage with a partner, dependent or family member could also be an option if they have a steady income, but remember to consider this option with care, and it is always advised that you undertake legal advice.
Will they really take benefits into consideration?
The chances of getting a mortgage approved will usually be based on other income/assets that you have, in addition to the benefits. It’s down to your broker finding you the right lender, as there are some that will cap your benefits and some who won’t accept them at all. That’s why the evidence that you can provide in the length of time that you will be awarded the benefit is vital. Whilst it can be extremely difficult, keeping your credit score good is important for any application.
There are lenders who specialise for those with bad credit score, there are lenders that can help those on low-income and more than 50% of your income comes from benefits.
Disability benefits refer to the income that you receive for either short term, but usually long term if you are permanently disabled. With PIP/DLA we know that these do not supplement a low income, as income is not a factor in this money being granted. The lender will be more concerned around the length of time that this is awarded.
What if I have just had a stroke and are struggling financially?
It’s the same if you already have a mortgage and have just had a stroke. Tell your lender if you are going to experience any difficulties in paying sooner rather than later. Lenders have a duty to be sympathetic if a customer hit financial difficulties. They may be able to help in several ways such as reducing your payments or suspending them for a short period of time or looking at whether it’s a possibility of extending your term to reduce the payments or looking at whether they can move you to interest only for a short period of time to reduce your payments. Lenders will have strategies in place, and will differ from lender to lender, but do speak with them as early as possible.
Can I get life protection?
This is where you will need to disclose much more personal information regarding your stroke, medication, any other health issues/diagnosis, family history and more. Sometimes depending on the insurer, it will be a straight-forward decision. Some insurers will require a GP/Consultant report for underwriting to review. It can be more challenging to obtain critical illness cover and the likes of income protection after a TIA/Stroke than life cover, but it’s always worth asking the question, you’re an individual, and it’s reviewed on a case-by-case basis. Like with mortgages, there are some insurers who will take more risk than others for complex cases. What will help is to have the following ready for when you approach your broker/advisor.
- When it occurred and on how many occasions
- If you were advised of a specific cause
- Details of your treatment, including if you had or are awaiting any treatment
- Details of any residual symptoms or restrictions in your daily activities
- Whether you had any difficulty breathing, chest pain on exertion, angina or pain in your calves when walking
What do I know?
My Mum had a stroke in November 2020, Different Strokes has been invaluable to us both, we’ve learnt so much from everyone in the online group, found answers, gained understanding, been able to ask questions, and we’ve been able to help and answer some which felt like we were giving back. That’s why I wanted to write this article.
I’ve learnt from Mum how her brain now works very differently from before her stroke. How things can overwhelm her, how we need to break things down, and how she will sometimes need to walk away from something, before picking it up again. For me it’s been invaluable in how I can support and help others as well as Mum. As a mortgage broker it’s made me think about how I can help my clients through this process if they have suffered a brain injury for example. Whether they need to have a meeting broken down into portions so it doesn’t overwhelm, whether they would prefer to have a video meeting and make it more visual, to whether they would prefer to conduct most of the fact find (after an initial face to face/video/telephone meeting) by writing/email. Don’t let fatigue, decision making, attention span, speech, poor memory put you off. A good mortgage broker will be able to overcome these by working with you.
The one thing that I can’t emphasis enough is trust. Find the right person who has the time, the patience, the compassion, the listening skills and the empathy. Find the person that you trust, and you connect with who can help you. Find your trusted advisor. Entering a commitment like a mortgage is a big step, buying that house, or releasing equity to adapt your current property to suit your needs, finding the right product to save you money in the short or long term.
More Information
If you’d like to discuss getting a mortgage, re-mortgaging for a better rate/deal, how you can release equity for home improvements and with any questions on life protection I’d love to be able to help.
P.S. Thank you Mum for continuing to teach me.
Contact me via email – clairbevan@christchurchmortgages.co.uk
Disclaimer: This is not a sponsored article and Different Strokes do not recommend one mortgage advisor over another. Ensure you do your research and make the right choice for you.
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