If you receive benefits and you’re wondering whether you can get a mortgage, you’re not alone. The honest answer is that getting a mortgage on benefits is harder than a standard application, but it isn’t impossible. Plenty of lenders accept benefit income as part of an affordability assessment.
Benefits mean any UK welfare or social security payment that lenders treat as a form of income. Loans on benefits, short-term hardship loans, and benefit advances are different products, and they’re not covered here.
We'll cover which benefits lenders may accept, how affordability works, and what your options are if you're declined. We'll also explain how Support for Mortgage Interest (SMI) differs from getting a new mortgage.
Your home may be repossessed if you do not keep up repayments on your mortgage.
This article is for general information only and isn't personal financial advice.
For a wider context, you can explore Habito's bad credit mortgages hub or speak to a Habito mortgage adviser about your situation.
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Yes, you can get a mortgage on benefits, although it can be harder than with employment income alone. UK lenders assess your overall affordability, the type and stability of your benefits, and your credit history. Some lenders are far more flexible than others, so where you apply matters.
In many cases, lenders are more comfortable when benefits are combined with income from employment, self-employment, or a pension.
Lenders cannot refuse you a mortgage purely because you receive benefits, and under the Equality Act 2010, they cannot refuse an application solely because you're disabled or ill. They can, however, decline an application if you don't meet their affordability criteria, just as they would for any other applicant.
If you want to understand the wider picture, read more about what can stop you from getting a mortgage.
Lender policies vary a lot. Some lenders accept disability benefits but not income-replacement benefits. Others do the reverse. The list below shows benefits that many UK lenders accept as income, grouped by type, but each lender has its own criteria.
Disability and care benefits (often accepted because they tend to be long-term):
Income-replacement and pension benefits (acceptance varies by lender):
Top-up benefits used alongside other income (commonly accepted as supplementary income):
Universal Credit (UC) is sometimes accepted as income, but lender treatment can be more nuanced. See our dedicated guide to mortgages on Universal Credit for the details.
Some lenders count 100% of a particular benefit, while others count only a portion. For example, a lender might use the full PIP amount but only half of a means-tested benefit. That’s why two lenders can reach very different decisions on the same household.
Lender treatment varies by benefit, but most apply a similar logic: Benefits that are long-term and regularly reassessed are generally viewed more favourably.
Because the rules differ so much, a Habito mortgage adviser can match your benefit mix to the right lender.
The affordability test follows the same framework as any other application. Lenders must check that you can afford the repayments now, and if rates rise. What changes is which income sources count, and how much weight each one carries:
Lenders may consider income multiples as a guide, often around 3 to 4.5 times annual earnings, although some may lend more in certain circumstances. Affordability checks and lender criteria also play a major role.
Lenders will also usually ask for documents such as benefit award letters, bank statements, and evidence of any other income you receive.
For example, say a household has £14,000 from employment plus £4,000 from PIP a year. A lender that counts all the PIP would assess the income of £18,000. A lender that counts only half the PIP would assess £16,000. That difference alone can change how much you can borrow, before outgoings, deposit, and the stress test are even factored in.
These figures are illustrative examples only and are not guaranteed borrowing amounts. The amount you may be able to borrow depends on factors including your income, regular spending, credit history, deposit size, and lender affordability checks.
To get a feel for the numbers, try Habito's mortgage comparison tool.
Deposit rules work much the same way whether or not you receive benefits. Many UK mortgages need at least a 5% deposit, and saving around 10% to 15% will usually give you access to a wider range of lenders and potentially better rates.
There’s one extra dynamic worth knowing. If benefits make up most of your income, some lenders may prefer to see a larger deposit. A lower loan-to-value reduces the lender’s risk, which can make approval easier.
For more on getting started, see our first-time buyer deposit guidance and low deposit mortgage options.
Saving for a deposit while on benefits can be tricky because savings can reduce your entitlement to means-tested benefits. It’s better to understand this before you build up a large pot. The thresholds below are current at the time of writing, so always check GOV.UK for the latest rules.
If you’re under State Pension age:
If you’re over State Pension age:
As your savings grow, your entitlement to some means-tested benefits may fall. In some cases, that can also affect the income a lender uses in its affordability assessment.
If you're worried about savings affecting your benefits, a gifted deposit may be worth exploring. Gifted deposits are generally treated differently from savings you've built up yourself, although you'll still need a gift letter and source-of-funds documents. See Habito's gifted deposit guide for more.
Receiving benefits doesn’t change your first-time buyer status. You can still qualify for first-time buyer stamp duty relief in England, with equivalent reliefs in Wales, Scotland, and Northern Ireland.
There are also several schemes that may be useful to know about, though availability differs across the UK:
Read more on Shared Ownership mortgages, Right to Buy mortgages, and first-time buyer benefits and rights, and take a look at the First Homes scheme guide.
Lender criteria change frequently, and each lender’s appetite for benefit-derived income is different. The list below groups the types of lenders that are most active in this space, but actual deal availability depends on your circumstances.
Mainstream lenders that accept some benefit income: Some mainstream lenders, building societies and specialist lenders may accept certain benefits as part of an affordability assessment. Criteria vary significantly between lenders and can change at any time. A mortgage adviser can help identify lenders whose criteria may be suitable for your circumstances..
Building societies with more flexible criteria: Leeds, Newcastle, Skipton, and Coventry. These lenders can be more flexible when assessing applications, particularly if your income comes mainly from benefits or a mix of different sources. These lenders may be a good option for applicants whose income is mostly from benefits but whose circumstances are stable.
Specialist lenders for non-standard income: Pepper Money, Vida Homeloans, Kensington, and Bluestone. These focus on non-standard income and often accept a wider range of benefits, including means-tested income, usually at higher rates. These lenders often consider applicants with majority-benefit income or adverse credit.
A broker can match your specific benefit mix to the lenders most likely to accept you, including ones that don’t always appear on comparison sites. You can speak to a Habito mortgage adviser about lenders that fit your circumstances.
Receiving benefits and having adverse credit are two separate factors. Either one can make a mortgage harder. Together, they narrow the lender pool further, but specialist lenders still consider these cases.
Lenders usually look at your credit history going back six years. The types of issues they find matter a lot. Missed payments, defaults, County Court Judgments (CCJs), debt management plans (DMPs), an Individual Voluntary Arrangement (IVA), and bankruptcy are all treated very differently, with more recent or serious issues carrying greater weight.
If you're wondering about the minimum credit score for a UK mortgage, you should know that lenders typically focus on your overall credit profile rather than a single score.
Specialist lenders may consider applications that combine benefit income with adverse credit. The common trade-offs are a larger deposit, often around 15% to 25%, and a higher interest rate.
One thing to avoid is applying speculatively, since repeated declines leave a footprint on your file that other lenders can see. This is where broker pre-screening can be useful.
For more, see Habito's bad credit mortgages hub or read Specialist (subprime) mortgages explained. You can also learn more about getting a mortgage with outstanding debt.
If you already have a mortgage and your circumstances change so that you now receive benefits, SMI may be available. It is a government loan that can help cover the interest part of your mortgage payments if you receive certain qualifying benefits. It isn't a mortgage subsidy, and it won't pay off your mortgage in full.
It’s important to be clear on a few things:
If Universal Credit is your main source of income, read more about mortgages on Universal Credit.
Your eligibility depends on your specific circumstances and current scheme rules. Check GOV.UK or read MoneyHelper's guide to SMI for the latest details.
Here are some of the questions that often come to mind when readers think about getting a mortgage while on benefits.
Personal Independence Payment (PIP) may be considered by some lenders as part of an affordability assessment, although how it is treated varies between lenders. Some lenders count the full PIP amount, while others may count only a portion. The mobility and daily living components are usually combined for affordability, and long-term claims are often viewed more favourably.
No, the government doesn’t pay mortgages directly. However, the Support for Mortgage Interest (SMI) scheme can offer a loan to help cover the interest part of your payments if you receive certain qualifying benefits, such as Universal Credit, Income Support, income-based JSA, income-related ESA, or Pension Credit. There’s usually a waiting period, and SMI is a repayable loan, not a grant.
No, under the Equality Act 2010, a lender cannot refuse your application solely because you’re disabled or ill. They must assess you on affordability, taking into account your income, outgoings, credit history, and the property, just as they would for anyone else. They can decline you if you don’t meet their affordability criteria, but disability alone is not a lawful reason for refusal.
Yes, you can get a mortgage on benefits in Scotland and Northern Ireland, although the options available can vary. The main differences are in government schemes, with some only available in England and others having regional alternatives. For example, Shared Ownership has alternatives such as LIFT in Scotland, Homebuy in Wales, and Co-Ownership in Northern Ireland. Lender criteria for benefit-derived income are broadly similar across the UK. Receiving benefits does not guarantee that you'll be accepted for a mortgage. Lenders assess each application individually and will consider factors such as affordability, credit history, deposit size, and the type and duration of any benefits received.
Benefit income doesn't automatically stop you from getting a mortgage. What matters is your overall affordability and circumstances. Criteria can vary significantly between lenders, which is why comparing lenders can be important.
You can get a Habito Mortgage in Principle or speak to a Habito mortgage broker to find out what you could be eligible for
Habito is a whole-of-market broker covering mainstream, building society, and specialist lenders, and the advice is free to you because we’re paid by lenders.
Options available to you will depend on lender criteria, affordability, and your personal circumstances.
Your home may be repossessed if you do not keep up repayments on your mortgage.
This article is based on guidance from organisations including MoneyHelper, Citizens Advice, and GOV.UK. Mortgage rules and legal processes can change, so it's worth checking the latest information or speaking to a qualified adviser.
Information is correct at the time of writing and may change. Always check the latest terms and conditions before taking out a product.
Last updated: June 8, 2026.
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