Can You Get a Mortgage on Benefits?

Buying a home is a major goal for many in the UK, but it can be challenging for those receiving state benefits. 

As of August 2024, about 9.9 million working-age people – roughly 23% of the working-age population – were receiving some form of state benefit (source)

At the same time, housing costs are high: the average UK house price was around £267,000 in early 2025​, and first-time buyers in England put down an average deposit of £53,000 in 2022-23​.

With over 6 million people on Universal Credit (the main UK benefit for working-age support) as of January 2024, a common question is whether being on benefits will prevent you from getting a mortgage.

For example, can you get a mortgage on benefits, does Universal Credit count as income for a mortgage, and which lenders will accept benefits as part of your income?

In this post, we’ll answer these questions and offer practical insights for homebuyers on benefits.

Can You Get a Mortgage on Benefits in the UK?

Yes, it is possible to get a mortgage while on benefits, but it may be more challenging. Lenders will assess your ability to repay just as they would for any applicant. 

Being on benefits doesn’t automatically disqualify you, but you must still meet the lender’s income and affordability criteria.

Here are some key points to understand:

Affordability and Income

Mortgage providers will look at your total income (salary, benefits, etc.) and expenses. 

Benefits can count toward your income, but many lenders prefer that you have some earned income (from employment or self-employment) alongside benefits​.

If your income is solely from benefits, the pool of willing lenders may be smaller.

Type of Benefits 

Some benefits are viewed as more stable or long-term, which makes lenders more willing to consider them.

For example, long-term disability benefits or child benefits may be more readily accepted as compared to temporary benefits. 

Also, lenders typically prefer income that is likely to continue. Disability benefits (like Personal Independence Payment) or Pension Credit are often accepted because they can be long-term​.

On the other hand, a short-term benefit (for instance, a limited-time unemployment benefit) might not carry as much weight in an application.

Documentation

If you’re relying on benefit income, be prepared to provide evidence. 

Lenders will usually ask for official benefit award letters or statements from the Department for Work and Pensions (DWP) to verify how much you receive and how long it’s awarded​.

They may also request recent bank statements showing the benefit payments.

Benefit as a Portion of Income

It’s common for lenders to only count benefits up to a certain portion of your total income. For instance, a bank might accept your benefit payments, but only if you also earn a minimum amount from a job. 

Each lender has its own policy, some might count 100% of a child benefit or tax credit in your income calculation, while others might count, say, 60% or exclude it if it’s your sole source of money.

The idea is that lenders want to see that you can afford the mortgage even if benefit rules change.

Other than the above, there could be different scenarios and individual circumstances that can impact how a lender views your application.

Can You Get A Mortgage If You Are Working Part-Time with Benefits?

If you have a part-time job and receive benefits (such as Universal Credit or Working Tax Credit) to top up your income, many lenders will consider the combined income. 

In this scenario, your employment income demonstrates an earnings base, and the benefits can improve affordability. 

Tip: Make sure to document your average working hours and income, as well as the stability of any benefits. Lenders often like to see that you’ve been in your job for a while and that your benefits are regular.

Can You Get A Mortgage If You Are Relying on Disability Benefits?

If you’re unable to work full-time and your income is mainly from disability benefits such as Personal Independence Payment (PIP) or Disability Living Allowance (DLA), it’s still possible to get a mortgage. 

Some lenders are quite understanding of these benefits, especially since they are long-term in nature. 

For example, certain big banks will count disability benefits as income – one lender even allows disability benefits as a primary income if the benefit is indefinite (long-term)​.

However, if disability or health benefits make up all of your income, you might need to approach specialist lenders or smaller building societies that have more flexible criteria. It could help to have a larger deposit or a joint borrower sole proprietor in such cases.

Can You Get A Mortgage If You Are A Single Parent on Benefit?

Single parents often receive Child Benefits and possibly the child element of Universal Credit or Child Tax Credit. The good news is many lenders do count child-related benefits as part of your income. 

For instance, child benefit is commonly accepted, especially if the child is below a certain age (since Child Benefit normally stops when a child turns 16 or 20 if in education). 

Lenders will also consider child tax credits (now usually within Universal Credit). 

However, note that the lenders will factor in the costs of having children when assessing affordability, they know a portion of your income will go toward childcare, food, etc. 

So, while child benefits can boost your declared income, high childcare expenses might reduce how much you can borrow​.

Also, make sure you disclose any child maintenance payments you receive or pay, as some lenders will include formal child maintenance as income if it’s court-ordered or via the Child Maintenance Service.

In all cases discussed above, having a larger deposit (e.g. 15-20% or more of the property price) can improve your chances. A bigger deposit means you don’t need to borrow as much, which makes you less risky to lenders.

It also shows you have had the ability to save or secure funds, which can offset lower income. Additionally, good credit history is crucial – lenders need confidence that you pay debts on time.

Being on benefits doesn’t hurt your credit score by itself, but make sure any loans, credit cards, or bills in your name are well-managed.

Which Mortgage Lenders Accept Benefits?

Many UK mortgage lenders will accept government benefits as part of your income, but their criteria vary.

Below is a comparison of several major lenders and how they view benefit income:

Lender	Acceptable Benefit Income	Conditions / Notes
Halifax	Yes, counts child benefits, tax credits, and disability benefits (DLA/PIP) as additional income.	Usually, will not accept benefits as your sole income; benefit income is considered secondary to earnings.
HSBC	Yes, accepts long-term benefits, including Universal Credit, DLA, PIP, and similar.	The benefit must be long-term in nature. You’ll need recent DWP letters and a bank statement as proof​. UC requires a breakdown of the components paid.
Nationwide	Yes, will consider most benefits as “other income”.	If your income is primarily a benefit, Nationwide warns that the application is likely to be declined. They prefer you to have another income source.
Santander	Yes, accepts disability and other benefits.	Indefinite or long-term benefits can count as primary income. Benefits that require frequent renewal are counted as secondary income. DWP documentation is needed.
NatWest / RBS	Yes, disability benefits (e.g. DLA) can be included as income.	Typically counted in addition to your salary or other income. They will require proof of the benefit and may have limits on how much is counted.
Virgin Money	Yes, accepts certain benefits (DLA, Employment Support Allowance, etc.) if you are employed.	The applicant must have a job; benefit income is used to supplement employed earnings. Virgin Money may not count benefit income if you have no employment at all.
Coventry BS	Yes, considers state benefits in income assessments.	No detailed public criteria are disclosed. Generally expects you to meet their standard employment/self-employment requirements as well​, with benefits as a top-up. Case-by-case decisions.
Yorkshire Bank	Case-by-case, there’s no fixed policy on accepting benefits.	Each application is assessed individually. They don’t outright include or exclude specific benefits so approval will depend on the overall strength of your application.

Notes: This table is not exhaustive, and policies can change this is just for some information for you. Most other high street lenders (such as Barclays, Lloyds, etc.) also accept some types of benefit income with varying conditions. 

Smaller building societies and specialist lenders might be more flexible if your situation is unusual, but they could charge higher interest rates. 

We recommend you to check each lender’s criteria or speak with a mortgage advisor, as they have up-to-date knowledge on which lenders are currently open to benefit income

Does Universal Credit Count as Income for a Mortgage?

Universal Credit (UC) can count as income for mortgage purposes, but not with every lender, and usually not on its own.

Universal Credit is the UK’s main welfare payment for working-age people, combining several old benefits (Income Support, Jobseeker’s Allowance, Tax Credits, etc.) into one. Lenders are gradually updating their policies to account for UC. 

Many lenders do accept Universal Credit in affordability calculations, especially if you receive it in addition to a salary or pension. For example, HSBC explicitly includes Universal Credit as acceptable income (provided it’s long-term and you document it and the income within it meets criteria)​

Others, like Halifax, consider UC under the umbrella of benefit or tax credit income, which they’ll count as extra income (but not as your sole income source).

However, there are still a few lenders that are cautious. This means if one bank says no, another might say yes. It’s important to shop around or get advice.

Does Being on Benefits Affect the Mortgage Process?

Aside from income verification, the mortgage process is the same. You’ll still need to pass affordability checks and credit checks.

Being on benefits might mean a bit more scrutiny of your finances, but lenders cannot discriminate just because your income is from the state. They simply must be sure that lending to you is responsible.

Finally, remember that if you do take on a mortgage while on benefits, you should plan for the future. Interest rates can change, and benefits rules can also change. 

Conclusion

In summary, getting a mortgage on benefits is achievable. 

Many lenders will count benefit payments like Universal Credit, disability benefits, or child benefits toward your income – though usually in combination with other earnings. 

The key is to demonstrate that you can afford the loan through a stable income (from whatever sources), a solid payment history, and ideally, a decent deposit.

Your home may be repossessed if you do not keep up repayments on your mortgage.

All content is written by qualified mortgage advisors to provide current, reliable and accurate mortgage information. The information on this website is not specific for each individual reader and therefore does not constitute financial advice.