★ Benefit income mortgage specialists ★ Universal Credit, DLA, PIP & Child Benefit considered ★ Complex income expertise ★ Whole-of-market advice
Mortgage on
Benefits
Drummonds Finance Group
Receiving benefits does not stop you buying a home. Many lenders count Universal Credit, PIP, DLA, Child Benefit, Carer's Allowance and other benefits as income, either alongside work or, in some cases, on their own. We find the lenders that accept your benefits and use as much of your income as possible, for buyers and homeowners across the UK.
At Drummonds Finance Group, we compare mortgage options from across the market to find lenders that are comfortable using benefit income, including Universal Credit, Disability Living Allowance, Personal Independence Payment, Child Benefit and other eligible benefits, alongside your earned income, deposit and individual circumstances.
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Can you get a mortgage on benefits?
Yes. Lenders want to know that your income is regular, reliable and likely to continue for the long term. Many benefits meet that test, particularly those linked to disability, caring responsibilities, children or retirement.
How much of your benefit income a lender will use depends on the type of benefit, how long it is awarded for, and whether you have other income such as a salary, self-employment or a pension. Rules vary widely between lenders, which is why the same application can be accepted by one and declined by another.
Why Choose Drummonds for Mortgages Using Benefit Income?
✅Whole-of-Market Access
We compare mortgage options from across the market to identify lenders whose affordability calculations work well with your NHS income and circumstances.
✅Benefit Income Expertise
We understand how different lenders assess Universal Credit, DLA, PIP, Child Benefit and other eligible benefit income.
✅Affordability Checked Before Applying
We assess your income and commitments before approaching lenders, helping reduce unnecessary applications.
✅Complex Household Income
We can help where your income is made up of salary, benefits, maintenance, tax credits or other regular sources.
Specialist Mortgages
Not every mortgage fits a lender's computer model. Much of our work at Drummonds Finance Group is with clients who have been turned down elsewhere or told their case is too complicated. We work with clients across the UK by phone and video, and we know which lenders will look at each situation properly.
Can you get a mortgage on PIP or DLA?
Yes. Disability benefits are among the most widely accepted forms of benefit income, because they are not means-tested and are usually awarded for long periods. A PIP award with years left to run, or an indefinite DLA award, gives lenders the confidence they need.
If your award is due for review soon, some lenders will still consider it, while others prefer to wait until the review is complete. We check the dates on your award letter before choosing a lender.
Can you get a mortgage on Universal Credit?
Yes, though fewer lenders accept it than accept disability benefits. Universal Credit is made up of different elements, and lenders treat them differently. Some will use the child element and the standard allowance, others only the parts linked to disability or caring, and almost none will count the housing element.
Universal Credit also changes month to month with your earnings, so lenders usually want to see several months of statements and may average your payments. Our guide to lenders who accept Universal Credit goes into more detail.
Can you get a mortgage on Carer's Allowance?
Often, yes. Many lenders accept Carer's Allowance, usually as part of a wider income picture, such as alongside part-time work, Child Benefit or a partner's salary. Lenders may also look at the benefits of the person you care for if you live together and are buying jointly.
Can you get a mortgage on Child Benefit?
Many lenders accept Child Benefit, but most only count it while your youngest child is under a certain age, often somewhere between 11 and 16, because the payments stop as children grow up. The older your children, the less weight lenders tend to give it.
Can you get a mortgage if benefits are your only income?
Sometimes. A small number of lenders will lend on benefit income alone, usually where the benefits are long-term, such as PIP, DLA, Attendance Allowance or a pension. The amount you can borrow is often lower, and a larger deposit helps a great deal.
Your options widen considerably if you can add other income, even a modest amount. That could be part-time work, a partner's income, or a family member supporting the application through a joint borrower sole proprietor mortgage, where they help with affordability without owning part of the home.
How much can you borrow on benefits?
Lenders work out affordability in the same way as for any applicant, looking at your total accepted income, your outgoings and your commitments. Some lenders cap the share of your income that can come from benefits, and some reduce the value of benefits that may stop or change.
As a rough guide, if all your income is accepted, lenders may lend four to four and a half times it, but benefit-heavy applications often come out lower. Our mortgage calculator gives a quick estimate, and we can tell you what each lender would actually use.
How much deposit do you need on benefits?
With benefits alongside other income, some lenders accept a 5% or 10% deposit. If benefits are most or all of your income, expect lenders to want 10% to 25% or more.
If saving is difficult, a gifted deposit from family is accepted by most lenders. Shared ownership can also help, because your deposit and mortgage are based only on the share you buy, and council tenants may be able to use the Right to Buy discount as a deposit.
Can you get a mortgage on benefits with bad credit?
Often, yes. Missed payments, defaults or CCJs reduce the number of lenders, but specialist lenders still consider benefit income. Being on benefits does not affect your credit score by itself. Our adverse credit mortgages page explains how lenders view credit problems.
Mortgages on benefits for different situations
First-time buyers. Many of our benefit clients are buying for the first time. Our first-time buyer mortgages page covers the wider process.
Older borrowers and pensioners. State Pension, Pension Credit and private pensions are widely accepted. If your term runs past retirement or you are already retired, see our page on mortgage age limits.
Remortgaging. If your circumstances have changed since you took your mortgage, a product transfer with your current lender usually involves no new income check. If you need to borrow more or want a better rate, a remortgage to a lender that accepts your benefits may work.
Moving home. If you need a home that better suits your needs, our moving home page explains how to time the sale and purchase.
Why use a broker for a mortgage on benefits?
Lender rules on benefit income are detailed, change often and are rarely published in full. Many high street lenders' online calculators ignore benefits altogether, which can make it look as though you cannot borrow at all.
We know which lenders accept each type of benefit, how much of it they use, and how they treat award review dates. That means we can approach the right lender first, without unnecessary credit searches, and present your income in the way that lender needs to see it.
How the process works
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We talk through your benefits, any other income, your outgoings and your plans.
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We review your award letters and bank statements to work out what each lender will accept.
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We identify the lenders that will lend you the most on your income.
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We get a mortgage in principle so you can make offers with confidence.
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We submit your application and manage it with the lender, valuer and solicitor through to completion.
Frequently asked questions
Author
Written by Liam Drummond CII (MP), owner and named mortgage broker at Drummonds Finance Group. Member of the Personal Finance Society, the Society of Mortgage Professionals and the Chartered Insurance Institute.
On this page we have explained whether you can get a mortgage on benefits and which benefits lenders accept, including Universal Credit, PIP, DLA, Carer's Allowance and Child Benefit. We have covered mortgages when benefits are your only income, how much you can borrow, the deposit and documents you need, bad credit, options for first-time buyers, older borrowers and homeowners, and how we arrange your mortgage from start to finish.