Lenders Who Accept Universal Credit: What You Need to Know in 2025

Finding a mortgage can be challenging, especially if part or all of your income includes Universal Credit. But the good news is that there are a number of lenders who accept Universal Credit as part of your income assessment in 2025.

At Drummonds Finance Group, we regularly help clients secure mortgages while receiving Universal Credit. But it’s important to understand that lender criteria can be complex and change frequently, so getting professional advice is crucial.

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✅ Which Lenders Accept Universal Credit in 2025?

Based on the latest verified data from Criteria Brain, we have 41 lenders who  are currently known to consider Universal Credit as acceptable income:

These lenders may consider your Universal Credit as part of their affordability assessment, but each one has different rules, combinations, and restrictions. Some only accept it when combined with other income sources, and others may limit loan amounts or require additional documentation.

➡️ Get in touch today for a mortgage Quote.

ℹ️ What Is Universal Credit?

Universal Credit is a government benefit payment in the UK designed to support individuals and families on a low income or who are out of work. It replaces several older benefits, including income support, housing benefit, child tax credit, and more, combining them into a single monthly payment.

Universal Credit is calculated based on your earnings, personal circumstances, housing situation, and number of dependents. Some people receive it as a top-up to part-time income, while others rely on it as their primary financial support.

Lenders assess Universal Credit differently, depending on how stable and regular your payment is, and whether it's combined with other forms of income.

⚠️ Why You Need Expert Advice First

Lenders frequently update their affordability criteria. Just because a lender accepted Universal Credit last month doesn’t mean they’ll do so tomorrow. Additionally, your individual circumstances—like credit history, employment status, deposit size, and other benefits—will play a significant role in your eligibility.

That's why it's essential to speak to a qualified broker. At Drummonds Finance Group, we:

• Stay up to date with lender criteria across 100+ providers

• Offer tailored advice based on your income mix

• Know which lenders are most flexible with benefit income

• Save you time and increase your chances of approval

🧠 Common Questions About Mortgages and Universal Credit

Q: Can I get a mortgage if my only income is Universal Credit?

A: It’s possible, but most lenders will want to see additional income. Some may require a working partner, part-time work, or other benefits to support the application.

Q: How do lenders calculate affordability with Universal Credit?

A: Some lenders consider the entire award, others only parts (like child element or housing). It varies widely.

Q: Will Universal Credit affect my mortgage rate?

A: Not directly, but it may limit your lender choice, which could impact the deals available to you.

Q: Can I use Universal Credit for a buy-to-let mortgage?

A: Generally, no—most BTL lenders require provable earned income. But always check with us.

Q: Do I need a larger deposit if I’m on benefits?

A: Some lenders may ask for a higher deposit if benefits form the bulk of your income.

🏡 Final Thoughts: Talk to a Mortgage Broker First

There are indeed lenders who accept Universal Credit, but understanding who does—and under what terms—is a specialist task. Your best next step is to talk to a mortgage expert at Drummonds Finance Group who can walk you through your real options and give you the clarity you need.

➡️ Get in touch today for personalised advice and peace of mind.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Important Disclaimer: This article is for information purposes only. Lending criteria change frequently, and mortgage offers are subject to complete financial assessment and lender approval. Always speak with a qualified mortgage broker before making any decisions.