Benefit Income: Industrial Injuries Disablement Benefit
Detailed guide to mortgages using Industrial Injuries Disablement Benefit (IIDB) income, including lender acceptance (50-100% usage), documentation requirements, combination with other income sources, and why IIDB is mortgage-friendly (permanent, guaranteed, tax-free).
Mortgages with Industrial Injuries Disablement Benefit (IIDB) Income
Industrial Injuries Disablement Benefit is a government benefit paid to those injured or disabled through work. Many lenders accept IIDB as income for mortgage affordability, but criteria and acceptance levels vary significantly.
What is Industrial Injuries Disablement Benefit?
IIDB compensates workers for illness or disability caused by work or an accident at work. It's not means-tested and is paid regardless of other income or National Insurance contributions.
Key Features:
- Paid weekly, typically for life
- Amount depends on level of disability assessment (14%-100%)
- Separate from other disability benefits
- Tax-free income
Lender Acceptance of IIDB
| Lender Category | Acceptance Level | Income Used for Affordability | Maximum LTV |
|---|---|---|---|
| High Street Banks | Widely Accepted | 50-100% | 85-95% |
| Building Societies | Usually Accepted | 75-100% | 90-95% |
| Specialist Lenders | Very Flexible | 100% | 85-90% |
| Buy-to-Let Lenders | Case-by-Case | Varies | 75-80% |
Why High Acceptance? IIDB is a stable, guaranteed government payment with no review periods (unlike PIP or ESA which may change).
Documentation Requirements
Lenders Typically Request:
- Award Letter: Showing IIDB amount and duration
- Bank Statements: Evidence of regular payments (3-6 months)
- Disability Assessment: Percentage rating (supports permanence)
- Medical Evidence: If lender queries long-term nature
Income Calculation Methods
Method 1: Full Amount (100%) Most lenders treat IIDB like pension income - guaranteed and permanent.
Example: £150/week IIDB = £650/month → Lender uses full £650
Method 2: Percentage (50-75%) Some cautious lenders discount IIDB, especially if combined with other benefits.
Example: £150/week = £650/month → Lender uses £487.50 (75%)
Real-World Scenarios
Former Miner with IIDB and State Pension Robert, 67, received £180/week IIDB (pneumoconiosis from mining) plus state pension. His building society accepted both at 100%, enabling a £95,000 mortgage at 75% LTV for downsizing.
Factory Worker with Partial Disability Lisa, 52, had 40% disability rating (£90/week IIDB) plus part-time wages (£800/month). Her lender used full IIDB + salary, securing her a £140,000 mortgage at 85% LTV.
Construction Worker - Permanent IIDB Mark received £165/week IIDB following a serious workplace accident. Despite no other income, a specialist lender provided a £110,000 mortgage at 75% LTV, using his full IIDB as stable income.
Combining IIDB with Other Income
| Additional Income Source | Treatment | Notes |
|---|---|---|
| Employment | Both counted fully | Strongest affordability |
| State Pension | Both counted 100% | Excellent combination |
| PIP/DLA | May discount PIP to 50% | IID B usually full |
| ESA | ESA often discounted | IIDB more reliable |
| Pension Income | Both counted fully | Strong affordability |
Age and IIDB Mortgages
Under 60: Good mortgage options, longer terms available (25-30 years) 60-70: Standard later-life lending, 15-20 year terms typical 70+: Specialist lenders essential, may need larger deposits
Expert Tips
- Use Lenders Who Accept 100%: Not all lenders treat IIDB equally - specialists may offer better rates
- Permanent Award Letter: Emphasise lifetime/permanent nature to lenders
- Combine Income Sources: IIDB + part-time work significantly strengthens applications
- Consider RIO Mortgages: Retirement Interest-Only options if age 55+ (payments from IIDB, capital repaid on sale)
- Apply with Award Letter Ready: Speeds up underwriting
IIDB vs Other Disability Benefits
Why IIDB is Mortgage-Friendly:
- No Reviews: Unlike PIP/ESA, IIDB rarely changes once awarded
- Not Means-Tested: Won't be affected by other income/savings
- Guaranteed: Government-backed, paid for life
- Tax-Free: Doesn't affect tax position
Frequently Asked Questions
Q: Can I get a mortgage with only IIDB as income? A: Yes, many lenders accept IIDB as sole income, though amounts must cover mortgage payments with affordability buffer.
Q: What if my IIDB is under review? A: Rare for IIDB, but lenders may wait for review outcome. Most IIDB awards are permanent.
Q: Do I need a larger deposit with IIDB income? A: Not necessarily. If IIDB covers affordability, you can access standard LTVs (85-95%).
Q: Can I use IIDB for buy-to-let? A: Some specialist BTL lenders accept it, but most require employment/pension income.
Q: What if my IIDB is only 14% disability? A: Amount matters more than percentage. If weekly payment covers mortgage affordability, lenders will consider it.
How We Can Help
As specialists in benefit income mortgages:
- Access to 40+ lenders who accept IIDB at 100%
- Maximise affordability using all income sources
- Navigate documentation to prove income stability
- Fee-free consultations for IIDB mortgage queries
Next Steps
- Gather IIDB evidence: Award letter, bank statements showing payments
- Calculate affordability: Ensure IIDB + other income covers mortgage
- Contact us: We'll find lenders offering best rates for IIDB income
Need a mortgage with Industrial Injuries Disablement Benefit income? Our team secures competitive rates for clients with government benefit income.