Can You Get a Mortgage If You’re on Universal Credit or Benefits?
If you’re on Universal Credit or other types of benefits, it’s easy to feel like getting a mortgage is a long shot. But here’s the truth — it’s not as out of reach as you might think.
At Mortgage Bridge, we’ve helped loads of people in similar situations. Whether you’re getting Universal Credit, Child Benefit, or PIP, some lenders are open to considering it — especially if your case is put together properly.
Here’s everything you need to know if you’re thinking about applying for a mortgage while receiving benefits.
Can I Get a Mortgage While on Universal Credit?
Yes, you can. A lot of people we speak to are surprised to hear that. If Universal Credit is your main income, or it’s topped up by part-time work, a pension, or self-employment, there are lenders who may consider you.
They’ll want to know how long you’ve been receiving it and how stable it is. Universal Credit can vary from month to month, so being able to show a consistent payment history really helps.
Which Types of Benefits Do Mortgage Lenders Accept as Income?
Not all benefits are treated equally, but some are regularly accepted by lenders — especially the ones we work with.
Here are a few we often see included in mortgage applications:
- Universal Credit
- Child Benefit
- Child Tax Credit
- Personal Independence Payment (PIP)
- Disability Living Allowance (DLA)
- Carer’s Allowance
- Employment and Support Allowance (ESA)
- Working Tax Credit
- Pension Credit
It really depends on the lender — some accept all of the above, some only take certain ones into account. We help match your circumstances to lenders that actually work with this kind of income, so you’re not wasting time going in circles.
Can I Apply for a Mortgage If My Only Income Is from Benefits?
You can — but we’ll be honest, it can narrow your options a bit. If your income is entirely from benefits, lenders will want to see that the payments are long-term or ongoing. For example, something like PIP or DLA that’s paid indefinitely is often seen as more stable than something short-term or regularly reassessed.
That said, we’ve helped plenty of clients get a mortgage with no job but on benefits. It just means being realistic about which lenders will say yes and how much you might be able to borrow.
What Documents Do I Need for a Mortgage If I’m on Benefits?
Lenders want to see that your income is regular and reliable, and the best way to do that is with clear paperwork. You’ll usually need:
- Your most recent Universal Credit or benefit award letters
- A breakdown of what you receive and why
- Bank statements showing the money coming in
- Proof of ID, address, and deposit
- Payslips or tax returns if you’ve got any other income
If that sounds like a faff, don’t worry — we’ll guide you through exactly what’s needed and help check it all before submitting.
Is It Possible to Buy a House While on Benefits?
Definitely. We’ve helped loads of people buy homes while receiving benefits. You don’t need a huge income or perfect circumstances — just a lender who’s happy to work with what you’ve got.
There aren’t special “benefit mortgages” as such, but there are plenty of lenders (especially specialist ones) who will look at the full picture, not just what a computer says.
How Much Deposit Do I Need for a Mortgage If I’m on Benefits?
In most cases, you’ll need at least a 5% deposit. So, if you’re looking at a £160,000 property, you’d need around £8,000. If you can put down more, great — it can sometimes get you a better deal.
Some clients on benefits think they’ll need a huge deposit, but that’s not always true. We can help you work out what’s possible based on what you’ve already saved.
What Should I Do If I’ve Already Been Declined for a Mortgage?
First of all — don’t panic. Being declined doesn’t mean your chances are over. It often just means the lender wasn’t right for your situation.
We regularly help people who’ve been turned down elsewhere. Maybe the lender didn’t accept benefits, or they didn’t fully understand your income. That’s where we come in. We’ll look at what happened and steer you towards lenders who’ll take a more flexible view.
Do Banks Accept Universal Credit for Mortgage Applications?
Some banks do, but many of the big ones are stricter with benefit income. They might ignore parts of your Universal Credit or only count a percentage of it, especially if it includes housing or childcare elements.
We tend to work with lenders who look at the bigger picture — not just what’s on paper. These are usually specialist lenders you won’t find on the high street, and most of them only work with brokers like us.
Can I Get a Mortgage If I Receive PIP or DLA?
Yes — and this type of income can actually work in your favour. If you’re receiving PIP or DLA long-term, and it’s likely to continue, some lenders see this as a steady and reliable source of income.
We’ve helped many clients who receive disability-related benefits. It’s just about finding the right lender who understands that financial stability can come from more than just a salary.
How Much Can I Borrow on Universal Credit or Benefits?
It depends on your full income and outgoings. Lenders usually offer around 3.5 to 4.5 times your annual income, but they might treat benefit income slightly differently.
If you’re receiving £12,000 a year in benefits and have no debts or dependants, you could borrow around £40,000 to £50,000 — but that’s just a rough guide. We’ll give you a better idea based on your specific situation.
What Are the First Steps If I Want a Mortgage While on Benefits?
Here’s what we’d suggest if you’re thinking about applying:
- Get in touch with a broker – ideally someone who works with benefit income (that’s us!).
- Get your paperwork together – award letters, bank statements, proof of ID and deposit.
- Check your credit report – we can help you do that for free if you’re not sure where to start.
- Be honest about your income – the more upfront you are, the better we can help.
- Ask questions – we’re happy to explain everything in plain English. No jargon.
Is It Worth Applying for a Mortgage If I’m on Benefits?
Yes, 100%. We’ve helped people in all sorts of situations — low income, no job, bad credit, and everything in between. If you’re receiving benefits and wondering whether it’s even worth trying, the answer is: it absolutely is.
You might not get approved by every lender, but that doesn’t matter. You only need one lender to say yes — and we’ll help you find them.
If you’ve got questions or just want to know what’s possible, get in touch with us at Mortgage Bridge. No pressure, no hard sell — just proper advice from people who genuinely want to help.