Yes, you can often get a mortgage while receiving benefits. Lots of lenders count benefit income like Universal Credit, PIP, DLA, ESA, Maternity Pay and tax credits, but they treat them a bit differently. Here's which benefits are accepted, which lenders consider them, and how to apply.
"I've helped so many people get a mortgage while on benefits, and the biggest hurdle is usually just believing it's possible. Once we know your full income picture, finding a lender that fits is often more straightforward than people expect."
Rachel Geddes
Strategic Lender Relationship Director
Can you get a mortgage on benefits?
Yes, you can. Lots of lenders count benefit income towards a mortgage. Claiming benefits doesn't rule you out of buying a home.
It helps if your benefits sit alongside other income, like a job, self-employment or a pension. If benefits are your only income, it gets harder to get a mortgage, but it’s not impossible.
The tricky part is working out which lenders suit you. Every lender (usually a bank or building society) has its own rules. That's exactly what a mortgage adviser is here to help with. Have a chat with one and they'll be able to talk you through what it could look like.
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Understanding mortgages and benefits
What is a mortgage?
A mortgage is a loan you use to buy a home. You pay it back bit by bit, usually over 25 to 35 years. Before a lender says yes, it will check you can afford the repayments. It will look at your income, your spending, your credit history and your deposit.
Income isn't just a payslip. It can be self-employed earnings, a pension, or certain benefits too.
Which benefits do lenders accept?
This bit varies a lot. Some lenders take your full benefit income into account. Others only count part of it. A few won't count it at all. That's why it pays to speak to an adviser who knows the market inside out.
There's no single list every lender sticks to. But here's how lenders look at some common benefits:
Benefit | How lenders usually treat it |
Universal Credit | Often accepted, especially with childcare or housing elements |
Personal Independence Payment (PIP) | Widely accepted, as it's a long-term benefit |
Disability Living Allowance (DLA) | Treated much like PIP |
Carer's Allowance | Accepted by some lenders, especially alongside other income |
Statutory Maternity Pay or Maternity Allowance | Counted while you're on leave, then your normal salary counts once you're back at work |
Child Benefit | Usually accepted, though lenders may put a limit how much they use |
Working Tax Credit and Child Tax Credit | Accepted by a few lenders |
Employment and Support Allowance (ESA) | Sometimes accepted, depending on your wider circumstances |
Pension Credit | Accepted by some lenders alongside other income |
War pensions | Usually seen as regular, stable income |
State Pension | Also seen as regular, stable income |
How do lenders count benefits?
Every lender does it a bit differently. Some will:
Only count certain types of benefits
Use all of some benefit income, and less of others
Take just a slice of the benefit payment into account
A broker or adviser who knows the market can point you towards lenders who are likely to say yes for your situation. Let them do the legwork.
How can I get a mortgage on benefits?
If you’re receiving benefits, a mortgage broker can help find a lender will accept income from the type of benefits you receive.
The lender will look at other stuff too. Such as:
Your other income (from a job or self-employment)
Your regular spending and money commitments
Your deposit
Your credit history
How big a mortgage you want
Whether you can make the payments
A solid deposit and a good credit history will really help, whatever your income looks like. And if your benefits sit alongside part-time work or self-employment, lenders will weigh up everything, not just one piece of it.
Common myths about mortgages and benefits
There's a lot of rumours floating around. Let's clear a few things up.
"You can't get a mortgage if you're on benefits." Not true. Some lenders will happily count certain benefits as income. Rather than assuming you're out of the running, it's worth checking a lender's actual criteria.
"You have to be in full-time work." Not necessarily. Lenders want to know you can afford the mortgage, and a job is just one way to show that. If you get benefits, these can often sit alongside other income.
"You can't get a mortgage if you're disabled." Also not true. Being disabled doesn't stop you getting a mortgage. Some lenders accept disability-related benefits as income. What's available depends on your benefit and your wider finances.
"Universal Credit means you can't get a mortgage." No. Some lenders will factor Universal Credit into affordability, especially alongside full or part-time work. The rules can feel fiddly, as Universal Credit can shift with your circumstances, but a broker can explain how lenders are likely to treat yours.
"It's too complicated to even try." It can feel that way, with different rules for different benefits and different lenders. But untangling this is exactly what a mortgage adviser does all day. One quick chat can save you hours of digging and a lot of worry.
What to do next
If you're on benefits and thinking about buying a home, or remortgaging the one you've got, don't write yourself off before you've started.
Book a free appointment with a mortgage adviser and find out exactly where you stand. It costs nothing to ask, and you could be closer to owning your own home than you think.
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Something to bear in mind...
FAQs
Yes. Many lenders accept benefit income, and it can sit alongside a salary, part-time work or other income. The trick is finding lenders who are comfortable with your situation and understanding how your benefits fit their affordability rules.
Yes. Some lenders count it fully, especially if you get childcare or housing elements. Others only count part of it. It really comes down to the lender.
You can, and benefit income can help. Lenders look at your whole financial picture, not just your salary. Keeping credit commitments low, saving a deposit and checking your credit report all help your chances too.
It isn't a special type of mortgage. It's just a mortgage where part of your income comes from disability benefits like PIP or DLA. Lenders often like these benefits because they're long term and stable. A mortgage adviser can help you find lenders that suit your situation and show you how your benefits can support your application.