HOLD: Eligibility and prioritisation

Specialist mortgages for people with disabilities: Eligibility for Shared Ownership and HOLD

Who is eligible to apply for a specialist mortgage for people with disabilities?

There are specific eligibility requirements the homebuyer needs to meet to access a specialist mortgage. To determine eligibility, the applicant needs to meet the criteria outlined below:

• Disability benefits: Applicants must receive Enhanced or Standard Daily Living Personal Independence Payment (PIP) or Disability Living Allowance (DLA).
• Financial benefits: Applicants also need to be receiving the Universal Credit Limited Capability for Work and Work-Related Activity (LCWRA) element or be in the ESA Support Group.
• Age and credit history: Applicants must be 18 years or older with a clean credit history and no outstanding debts.
• Employment capability: Applicants should be unable to work in conventional employment for more than 12 hours per week.
• Care support: Applicants must either have or be arranging a Care & Support package with a local authority, private care provider, or family.
• Mental capacity: Applicants are required to demonstrate their mental capacity to understand what a mortgage is or to have a Court of Protection or Lasting Power of Attorney in place.
• Living arrangements: Applicants should be looking to live independently. If sharing with someone else is a preference, this may be considered, but it’s important to carefully plan and approach the decision thoughtfully to ensure it’s the right fit.
• Deposit and fees: Applicants will need to cover the minimum 5% deposit for their share of the property and fees amounting to around £12,000 – £15,000 (this includes the deposit). Approximately £30 will also be required weekly to contribute to the applicant’s housing costs.

What else do I need to consider?

In addition to meeting the basic eligibility requirements, you/the applicant should also consider the following factors:

• Mortgage cap: The maximum mortgage applicants can secure is £100,000, meaning you/the applicant would need a minimum deposit of £5,000 for your share of the property.
• Shared Ownership: Applicants must be looking to purchase a property through Shared Ownership or from the open market through HOLD, depending on availability and the discretion of the housing association.
• Affordability assessment: The affordability of the property will be carefully assessed to ensure you/the applicant can continue to sustain homeownership long-term.
• Signing documents: If the applicant has an appointee, they can sign the paperwork for the house purchase and mortgage application on their behalf, providing they have been appointed as a Deputy via the Court of Protection/Guardianship office.
• Support needs: Both HOLD and Shared Ownership can be a viable home-buying option for people with high support needs, so it’s worth looking into these routes to homeownership even if you’re unsure. Many people with complex needs have successfully purchased a home of their own through HOLD or Shared Ownership.

How does prioritisation work?

Prioritisation for properties depends largely on the availability of suitable homes and the discretion of the housing association(s) covering the specific area you/the applicant are looking to buy. Homes England’s Capital Funding Guide encourages applicants to consider Shared Ownership homes first, as these are typically the preferred option if available. If a suitable Shared Ownership property is not available, you/the applicant, may be able to purchase a property from the open market through the HOLD scheme.

Each housing association may operate slightly differently, but prioritisation is generally given to those who meet all eligibility requirements and can demonstrate long-term affordability.

Where can I search for properties?

If you think HOLD or Shared Ownership could be the right paths to homeownership for you or your loved one, you can explore homes available through this affordable housing product via our property portal. Want to learn more about different buying options before searching for a property? Explore our housing guides for more information.