Question 1

Which benefits do mortgage lenders accept?

Accepted Answer

Commonly accepted: Child Benefit, Child Tax Credits, DLA, PIP, Carer's Allowance, Attendance Allowance, and some pension credits. Less commonly accepted: Universal Credit, Housing Benefit, ESA. Each lender has their own policy.

Question 2

Do I need employment income as well as benefits?

Accepted Answer

Not always. Some lenders accept 100% benefits income if the benefits are stable and long-term. However, having some employment or pension income typically increases your options.

Question 3

How do lenders view disability benefits?

Accepted Answer

DLA and PIP are generally well-accepted as they're considered stable, long-term income. Lenders recognise these are unlikely to be removed suddenly. They're often treated similarly to employment income.

Question 4

Can I use Universal Credit for a mortgage?

Accepted Answer

Some lenders accept the 'work' element of Universal Credit. The housing element is rarely accepted. Acceptance of UC varies significantly between lenders - specialist advice is important.

Question 5

What about benefits that might change?

Accepted Answer

Lenders prefer benefits likely to continue for the mortgage term. If your benefits are under review or may change (e.g., children ageing out of Child Benefit), this may affect calculations.

Lender Type	Accepts	Notes
High Street Banks	Child Benefit, some Tax Credits	Varies by specific bank
Building Societies	Wider range of benefits	Often more flexible
Specialist Lenders	Most stable benefits	Case-by-case assessment
Shared Ownership Lenders	Benefits-friendly	Designed for lower incomes
Private Banks	Case-by-case	For higher value applications

Mortgage Lenders Accepting Benefits Income

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