Being on benefits does not mean you cannot buy a home. Lenders will consider all your income, which may include certain benefits. They want to see if you can make repayments each month.
Some checks may be stricter than for people in full time jobs. Even so, there are still options. Some lenders provide mortgages for people on benefits, giving extra choice and support. With the right plan, owning a home while on benefits is possible.
How can you get a mortgage while receiving benefits?
If you are on benefits, you can still apply for a mortgage if you show steady income. Lenders will ask for:
- Proof of regular benefit payments
- Wages from part time or full-time work
- Details of spending and debts
Clear proof of income builds trust with lenders. If you want to see the choices available, you can explore mortgage options that suit your circumstances.
Which benefits count as income for mortgages?
Not all benefits are treated the same way by lenders. Some are more likely to count as income, such as:
- Child Benefit
- Child Tax Credit
- Universal Credit
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
- Carer’s Allowance
- Industrial Injuries Benefit
Many buyers ask themselves, “Can I get a mortgage on Universal Credit?” In many cases, it is possible. Lenders may count these payments as part of your income if they are steady and reliable. Still, rules can vary from one lender to another, so it’s important to check their criteria before you apply.
Your legal rights
You cannot be refused a mortgage just because you receive benefits. UK law requires lenders to treat all applications fairly. They must look at your whole situation, including income, credit record, and ability to repay. The source of your money, whether wages or benefits, should not be the only factor considered.
If you feel a lender has mistreated you, you can find out what support is available to understand your rights better. This guidance helps you see what steps to take if your application is not handled correctly. Having this knowledge gives you more confidence when applying.
What types of mortgage can you get on benefits?
If you are on benefits, you may still apply for the same types of mortgages as other buyers. The main difference is that lenders may look more closely at affordability. Common options include:
- Repayment mortgages – You pay back the loan and interest each month, reducing your balance over time.
- Interest only mortgages – You pay only the interest each month and repay the loan in full at the end. These are less common and usually need a clear repayment plan.
- Specialist mortgages – Some lenders provide products for people with unique circumstances, such as those on benefits or with a lower income.
With the right guidance, looking at these options can make the process easier and improve your chances of finding a suitable deal.
How much can you borrow if you’re on benefits?
The amount you can borrow depends on your full income, not just the benefits you receive. Most lenders use an income multiplier, often three to five times your yearly income.
For example, if you earn part time wages alongside Universal Credit, the lender will decide how to treat this income when running affordability checks.
Your credit history and any debts will also affect the amount you can borrow. As rules differ between lenders, it is best to confirm their criteria before you apply.
Which mortgage schemes can help if you’re on benefits?
Government schemes can make it easier to buy a home if you are on a low income. Some of the main options include:
Shared Ownership – You buy part of a property (usually 25%–75%) and pay rent on the rest. You can increase your share over time.
Right to Buy – Council tenants can buy their home at a discount.
Mortgage Guarantee Scheme – This allows buyers to get a mortgage with a deposit as low as 5%. It is useful if saving a large deposit is difficult.
These schemes can give you a helpful starting point, but approval is never guaranteed. Lenders still need to see that you can manage repayments. This is why it’s important to take extra steps to strengthen your application and show that you are a reliable borrower.
How to improve your chances of mortgage approval
Getting a mortgage can feel difficult, but there are steps you can take to improve your chances of approval. Lenders want to see that you can handle money well and make repayments on time.
Credit score – A good credit score shows that you have managed borrowing responsibly in the past. Paying bills on time and reducing debts can help raise your score.
Large deposit – Saving for a bigger deposit makes you less risky to lenders. It reduces the amount you need to borrow and may also give you access to better rates.
Proof of income – Lenders need clear evidence that you can afford the repayments. Having payslips, bank statements, or benefit letters ready helps prove your income is steady and reliable.
By focusing on these areas, you can strengthen your application and improve your chances of getting approved.
Why working with a mortgage broker can help
Getting a mortgage while on benefits can feel difficult, but a broker can make it simpler. They know which lenders are more open to these applications and which products may suit your needs. Brokers also compare deals across the market, which saves you time and effort.
A broker can help you gather the right documents and guide you through each step of the process. This lowers stress and increases your chance of being approved. If you are ready to apply, you can work with a mortgage broker to find the right deal.
Conclusion:
So, can you get a mortgage on benefits? The answer is yes. Lenders will check your total income and see if repayments are realistic. This can include wages, if you work, and certain benefits. It may feel harder than for someone in full time work, but there are still choices. Some lenders offer mortgages for people on benefits, giving you more flexibility. You may also get help from government schemes and support services. Showing clear proof of income and seeking advice makes the process smoother. With planning and the right guidance, buying a home while on benefits is possible.