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Can You Get a Mortgage on Benefits?
Author: Carl Shave - Director

Yes, you can get a mortgage on benefits. However, as with much in the mortgage industry, there is typically a little more to the answer that means not everyone will be successful, and not all benefits you receive may be used by the lender in their calculations. Where a lender does use benefits to calculate your possible mortgage it will likely be the case that these are used when they are in addition to another form of income such as PAYE or that from being self-employed. It may also be that the lender will only use a proportion of the benefits rather than 100% of it in their calculations.

Can I get a mortgage on benefits?

Yes, it is certainly possible to be considered for a mortgage where you are in receipt of benefits.  Benefit payments come in all different guises and are paid for many varying reasons and with this in mind if a lender does accept them there may be restrictions to which ones they will accept and how much of these they will use. Typically, a lender will not lend based on benefit income alone and would expect to see other forms of income being received such as that from paid employment or from self employment.  Other matters such as the size of deposit or the amount of equity you have may play a relevance, and as with anyone considering a mortgage, your credit background will be taken into account.

Can I claim universal credit if I have a mortgage?

Having a mortgage will not stop you being able to make a claim for universal credit.  Indeed, your claim for universal credit may involve seeking assistance for your mortgage payments.  These specific benefit payments are known as Support for Mortgage Interest or SMI.  As with any benefit, there is a specific set of criteria to be eligible and do note that if your claim is successful the payments are for the interest only element of your mortgage and not as a contribution towards any capital.

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