Mortgage for someone with long term illness ?

[J4CKO]

A mate of mine still lives with his parents for one reason or another, trouble is there is a lot of friction and he needs to move out, he has very little savings but can get a deposit together, trouble is he has some long term health issues which have hospitalised him twice in the last 18 months.

He has seen a flat, its only 85 grand, so he would need a mortgage for 75 grand, are there any lenders who will lend to people with health issues or other ways round the problem as its not helping his health being where he is, too much stress and it isnt him generating it.

[j4ckos mate]

Its not me is it?

[J4CKO]

j4ckos mate said:

Its not me is it?

I don't think mortgage companies discriminate based on being a knob

[Sarnie]

Putting it bluntly, lenders don't care about health issues.

They are about your ability to repay the money borrowed.

Does he has any employed income?

[Maryben]

Scooby Drew said:

You do have to take out critical illness cover which, if his illness is on a list of high risk afflictions, will make it difficult to afford. The last time I checcked, crit cover would have cost me double due to being diabetic.

I've never heard of a mortgage lender making critical illness cover a condition of a mortgage and I have been arranging mortgages for more than 25 years. If you were told critical illness was a condition on you getting a mortgage I would give a call to the Ombudsman - it's more likely the adviser was thinking of his commission (I'm not against critical illness. It is a very good product, if affordable, but has never been compulsory when arranging a mortgage).

[dalenorth]

I constantly come across dodgy advisers that tell clients the lenders have insisted on life/cic, it's very rarely a condition on the mortgage criteria.

[Sarnie]

Scooby Drew said:

You do have to take out critical illness cover which, if his illness is on a list of high risk afflictions, will make it difficult to afford. The last time I checcked, crit cover would have cost me double due to being diabetic.

As mentioned by MaryBen, you don't HAVE to take out critical illness cover. It's adviseable in most cases, dependent on circumstances and affordability, but it's certainly not a requisite for being given a mortgage.

[splodge s4]

As mentioned above, it based on his ability to afford & repay the mortgage, I've sorted mortgages for people who are house bound, in a wheel chair etc, as long as they have a provable income (employed or self employed) that supports the mortgage lenders are fine.

All mortgage protection, life cover, critical illness, income replacement etc is optional, lenders do not insist you take anything apart from buildings cover. They want to know if the house falls down they can re build it & keep their security, if the client is in the house when it falls down they don't care!