Can you get a mortgage on benefits?
Sometimes. Some lenders will count some benefit income towards what you can borrow; others count none at all. Which benefits, how long you have had them and what else you earn decide the answer.
Not ready to ring? WhatsApp me or leave your details and I will get back to you.
David Bourne
Why lenders differ so much
A lender's question about any income is the same: is it reliable, and will it carry on for long enough? Benefits that are long-term and not means-tested tend to be looked at more kindly than ones that can stop if your circumstances change. Each lender draws its own line, and the lines move.
Many lenders will use benefit income only alongside earned income, not on its own. A few are more flexible. That is why "can I get a mortgage on benefits" has no single answer, and why it is worth knowing which lenders are which before you apply.
Universal Credit
Universal Credit is means-tested and recalculated as your earnings change, which makes some lenders cautious about counting it. Others will consider elements of it. The detail of your award, and what it is made up of, matters more than the headline.
If you are on Universal Credit now and already own your home, Support for Mortgage Interest may help with the interest. GOV.UK is clear that it is a loan, repaid with interest when you sell or transfer the home, and that it cannot cover missed payments.
What to have ready
Your most recent award letters for every benefit, and bank statements showing the payments arriving. If you also work, your payslips. If any award is reviewed on a fixed date, know when, because a lender will ask.
Where credit history comes in
Benefit income and a less-than-perfect file often go together, for obvious reasons, and the combination narrows the field more than either does alone. That is exactly the kind of case worth talking through before an application, rather than after a decline.
The usual questions
Will lenders accept benefits as income?
Some will accept some benefits, often alongside earned income. It varies by lender and by benefit.
Can I get a mortgage on Universal Credit?
Some lenders will consider parts of a Universal Credit award. Because it is means-tested and can change month to month, others will not count it.
Can benefits be the only income?
Rarely. A small number of lenders may consider it in particular circumstances; most want earned income as well.
Does talking to you affect my file?
No. There is no credit search to talk.
Leave your details and I will get back to you.
Plenty of people would rather not ring a stranger about their credit file, least of all at the end of a long day. Leave a number or an email and I will get in touch when it suits you.
- Free first call
- No credit search to talk
- 13 reviews, 5.0 on Google
Or message me on WhatsApp, or ring 07810 716749.
Who else is part of this?
Income that arrives in an awkward shape, or a second name on the application, changes which lenders will look.
Self-employed with adverse credit
Two difficulties at once, and a smaller group of lenders comfortable with both.
Student loans and mortgages
Not on your credit file. It can still change what you can borrow.
Zero-hours contract
The contract promises no hours. Your payslips may tell a steadier story.
Company director mortgages
Paid the tax-efficient way, and the affordability model cannot see most of it.
Back to mortgages with adverse credit · How David helps · Income protection if you are self-employed
If you would rather see someone local: I work in Uxbridge and I live in Guildford.