Can you get a mortgage on benefits?

Key takeaways

• You can get a mortgage on benefits, with lenders looking at affordability, income stability, and the type of benefits you receive

• Long term, reliable benefits are viewed more favourably, with some lenders counting them fully, while others are more cautious

• Deposit size, credit score, and joint applications can help improve your chances of approval

Can you get a mortgage if you’re on benefits?

Yes, it’s possible to get a mortgage while receiving benefits. Lenders focus on affordability and reliability of income, so the type of benefit you receive and how long you’ve been getting it will matter.

Some lenders accept benefits alongside employment income, while a smaller number may consider applications where benefits are the main source of income.

Which benefits are accepted as income by lenders?

Policies vary, but commonly accepted benefits can include:

• Child Benefit

• Universal Credit (in some cases)

• Personal Independence Payment (PIP)

• Disability Living Allowance (DLA)

• Carer’s Allowance

• Working Tax Credit or Child Tax Credit

• Certain long-term incapacity or disability benefits

Short-term or means-tested benefits may be assessed more cautiously. Each lender has its own eligibility criteria, so it’s important to check what counts toward affordability.

Do benefits need to be long-term or guaranteed?

In most cases, yes. Lenders usually prefer benefits that are:

• Ongoing or long-term

• Supported by medical assessment or official entitlement

• Likely to continue for the foreseeable future

If a benefit has a fixed end date or requires regular reassessment, lenders may only count a portion of the income or exclude it altogether.

How much can you borrow on benefits?

There’s no set borrowing limit. The amount you may be able to borrow depends on:

• The type and stability of your benefits

• Any additional income from employment or self-employment

• Your credit history and existing debts

• Your deposit size

Some lenders apply standard income multiples (for example, around four to five times annual income), but others may take a more cautious approach if benefits form the majority of earnings.

Do you need a larger deposit if you’re on benefits?

No you don't necessarily but having a bigger deposit can improve your chances of approval.

While some applicants may access mortgages with deposits starting from around 5–10%, lenders may prefer a higher deposit if:

• Benefits are your main income source

• Your credit history is limited

• Your income is variable

A larger deposit can also help secure more competitive interest rates.

Use your free mortgage calculator to help you see how much you could borrow

Can you get a joint mortgage if one applicant is on benefits?

Yes. Many couples or co-buyers apply jointly where one person earns a salary and the other receives benefits.

In these cases, lenders typically:

• Combine both incomes for affordability checks

• Assess the stability of each income source separately

• Consider overall household expenses

A joint application can sometimes increase borrowing potential compared to applying alone.

Which lenders are more flexible with benefits income?

There isn’t a single lender that suits everyone, but some providers are known for taking a more flexible approach to non-standard income.

Generally, you may find options with:

• Certain high-street lenders that accept specific long-term benefits

• Building societies with manual underwriting

• Specialist lenders that assess complex income cases

Because lender criteria change regularly, comparing multiple options can help you find providers that consider benefits as part of affordability.

What alternatives are there if you’re declined?

If your mortgage application is turned down, there may still be other routes to explore:

• Applying with a larger deposit

• Improving your credit score before reapplying

• Adding a joint applicant with additional income

• Considering shared ownership or affordable home schemes

• Speaking to a broker who specialises in non-standard income

Taking time to understand why you were declined can help you strengthen your next application.

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