Mortgage Lenders That Accept Universal Credit
Yes, you can get a mortgage while claiming Universal Credit — but lenders treat it three very different ways, and which lender you approach matters more than almost anything else in your application.
Some count benefit income in full. Some count only a portion of it. Some will not count it at all, and assess you purely on earned income. Two lenders can therefore look at identical circumstances and offer wildly different amounts, or nothing.
That is why going direct to your own bank is usually the worst move here. A whole-of-market broker knows which lenders accept what, and one refusal on your credit file makes the next application harder.
At a glance
- Can you get a mortgage on Universal Credit?
- Yes, with the right lender
- How it's treated
- Some count 100%, some a portion, some none
- Best route
- A whole-of-market mortgage broker
- Also helps
- A larger deposit and a clean credit file
Key Takeaways
- You can get a mortgage while on universal credit, but it may not be straightforward. Specialist lenders may be more open to working with you if you can prove affordability.
- Mortgage lenders like Halifax, Nationwide, Coventry Building Society, and others consider universal credit as income, but it's essential to consult a mortgage broker for a whole market view.
- Factors like income, credit score, and deposit size influence mortgage approval. Honesty and transparency throughout the process are crucial.
- Benefits like Universal Credit are accepted by many mortgage lenders, but policies and calculations may vary. Seek a mortgage broker to identify suitable lenders and understand their criteria.
Can You Get a Mortgage on Universal Credit?
The answer is yes, but it may not always be straightforward.
While some lenders may hesitate to consider applications from individuals on benefits, there are specialist lenders who are more open to working with you.
The key is to prove that you can afford the mortgage repayments.
Working with a mortgage broker experienced in assisting benefit recipients can significantly increase your chances of finding a lender willing to consider your application.
Mortgage Lenders That Accept Universal Credit
Most major lenders will consider Universal Credit as part of your income — but "consider" is doing a lot of work in that sentence. Some count it in full, some count a proportion, some only alongside employed earnings, and some exclude particular elements of the award.
Lenders that have accepted Universal Credit as income include Halifax, Nationwide, Coventry Building Society, Santander, Yorkshire Building Society, Barclays and Lloyds.
Two warnings about that list, and they matter more than the list itself.
Criteria change without announcement. Lenders revise affordability rules regularly and rarely publicise it. A name appearing here is not a promise that it applies to you today, and a full application creates a hard credit search whether or not it succeeds.
Acceptance is not the same as how much. Two lenders can both "accept" Universal Credit and still arrive at borrowing figures thousands apart, depending on what proportion they count and how they treat the rest of your income.
This is the clearest case on the whole site for using a whole-of-market mortgage broker rather than applying direct. A broker knows which lenders are currently treating this income favourably, and can check without leaving a trail of hard searches on your file.
- All four agencies — in one report — Experian, Equifax, TransUnion & Crediva
- Spot the errors — and old debts that quietly get applications declined
- It's a soft search — so checking never leaves a mark on your file
- See what lenders see — the same information banks pull when they assess you
Free for 30 days, then £14.99 a month — cancel online anytime. Check the current price before subscribing. We may earn a commission if you sign up, at no extra cost to you.
Does Universal Credit Count as Income for a Mortgage?
Lenders will include universal credit when assessing your income for a mortgage. However, it will vary from lender to lender whether universal credit income is counted for affordability purposes as it may not be sustainable income.
Some lenders will include 60%, some none at all.
Factors to Consider When Applying for a Mortgage on Universal Credit
When applying for a mortgage on universal credit, several factors come into play. It's essential to be honest and transparent throughout the process. Here are some key considerations:
Income and Affordability
Lenders will assess your income and affordability to determine whether you can comfortably afford the mortgage repayments.
While universal credit is considered income, lenders may also consider other sources of income, such as part-time employment or rental income.
Providing evidence of your income, including universal credit statements, will be crucial in demonstrating your ability to meet the repayment obligations. To get a feel for the monthly cost of the mortgage you have in mind, try the calculator below.
Mortgage repayment calculator
Capital & interest, monthly repayment estimate
Estimate only. Your lender’s actual rate, fees and criteria will differ.
Credit Score
Your credit score plays a significant role in mortgage applications, though there is no single minimum credit score for a mortgage — each lender sets its own bar.
While a lower credit score may make it more challenging to secure a mortgage, it is not impossible.
Taking steps to improve your credit score, such as paying off outstanding debts and ensuring you are on the electoral roll, can increase your chances of approval.
Deposit
Lenders may require a larger deposit when considering applications from individuals on universal credit.
A larger deposit can reduce the perceived risk for lenders and increase your chances of approval.
Saving for a larger deposit should be part of your financial plan when preparing to apply for a mortgage.
Specialist Lenders and Mortgage Brokers
Working with specialist lenders who understand the unique circumstances of benefit recipients can greatly enhance your chances of securing a mortgage.
Mortgage brokers experienced in working with individuals on benefits can provide valuable guidance and help you navigate the complexities of the mortgage application process.
Benefits Accepted by Mortgage Lenders
While not all benefits are accepted by mortgage lenders, many will consider universal credit as part of your income for a mortgage application.
Here are some common benefits accepted by mortgage lenders:
- Attendance Allowance
- Carer's Allowance
- Child Benefit
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
- Employment and Support Allowance (ESA)
- Incapacity Benefit
- Jobseeker's Allowance (JSA)
- Maternity Allowance — see also getting a mortgage while on maternity leave
- Pension Credit
- Universal Credit
- Widow's Pension
Note that the old tax credits (Child Tax Credit and Working Tax Credit) closed in April 2025, with claimants moved across to Universal Credit — so any income of this type now falls under Universal Credit.
It's important to note that each lender may have different policies regarding the acceptance and calculation of these benefits.
Some lenders may consider the full value of the benefit, while others may only include a portion of it in their income calculations.
Consulting with a mortgage broker will help identify lenders who accept your specific benefits and understand their individual criteria.
Additional Help for Mortgage Applicants on Benefits
In addition to securing a mortgage, there are government-backed schemes and support available for individuals on benefits. These programs aim to provide additional assistance to potential mortgage applicants.
Here are some options worth exploring:
HOLD Scheme
The HOLD (Home Ownership for People with Long-Term Disabilities) scheme is a shared ownership program designed to help individuals with long-term disabilities purchase a home.
Support for Mortgage Interest (SMI)
If you are already a mortgage holder and receive a qualifying benefit such as Universal Credit, Pension Credit or Jobseeker's Allowance, you may be eligible for SMI. Bear in mind SMI is now a loan rather than a benefit — it is repayable, with interest, when you sell or transfer the home.
Buy-to-Let Mortgages on Benefits
If you're considering a buy-to-let property and are on benefits, some lenders may accept benefit income on your mortgage application. However, it's important to note that the choice of lenders may be limited.
Working with a mortgage broker can help you review your personal circumstances, financial objectives, and identify the most appropriate mortgage options available to you.
Mortgage Options for Individuals with Bad Credit and Benefits
Securing a mortgage with bad credit and being on benefits can be more challenging, but it is not impossible.
Some specialist lenders are willing to work with individuals in these situations.
Working with a mortgage broker experienced in bad credit mortgages can help you navigate the complexities and increase your chances of approval.
What Happens if Your Circumstances Change?
If your circumstances change after securing a mortgage, such as a loss of benefits or a change in income, it's crucial to seek financial advice as soon as possible and be honest with your mortgage lender. There may be options available to assist you, depending on the nature of the change in circumstances.
Can you use housing benefit to pay a mortgage?
In most cases, you cannot use Housing Benefit to directly pay a mortgage on a property you own. Housing Benefit is a government subsidy designed to help individuals or families with low incomes to cover their rent costs in rented accommodations, such as private rentals or housing association properties.
Can I get a mortgage with no job?
Obtaining a mortgage without a job is feasible but requires demonstrating alternative income sources like a pension or investments. Another option is to apply with a co-borrower who has stable employment, essentially sharing the responsibility for the mortgage payments.
Securing a mortgage while on universal credit may require additional effort and consideration, but it is possible.
By working with specialist lenders, being transparent about your circumstances, and seeking guidance from experienced mortgage brokers, you can increase your chances of obtaining a mortgage that meets your needs. Remember, each lender has its own criteria, so it's important to explore your options and find the best fit for your specific situation.
With the right support and information, you can navigate the mortgage landscape and achieve your homeownership goals, even while receiving universal credit.
