Mortgage on benefits: The lenders that accept benefits

It is still possible for you to get a mortgage if you're on benefits. Many lenders will take government benefits into account when calculating your affordability.

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Our guide outlines the key things to consider if you’re trying to get a mortgage while receiving government benefits, including which benefits are usually accepted as income, what different lenders’ policies say and what home ownership schemes are currently available.

Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

Can I get a mortgage on benefits?

Potentially, yes, you can get a mortgage when receiving benefits. When assessing your mortgage application, a lender’s biggest concern is the amount and stability of your income – and many are happy to consider government benefits as a source of income.

Therefore, as long as you can afford a mortgage, there is no reason why being on benefits should stop you applying for one.

The biggest hurdle for many mortgage applicants is that their benefits are often used to supplement a low income. If you’re in that position, check out our guide on getting a mortgage with a low income.

Which income sources qualify for a mortgage?

As well as income from an employer or your own business, many lenders will take government benefits into account when calculating your affordability.

These include the following:

  • Attendance Allowance
  • Bereavement Support Payment (BSP)
  • Carer’s Allowance
  • Child Benefit
  • Child Tax Credit
  • Employment and Support Allowance (ESA)
  • Industrial Injuries Disablement Benefit (IIDB)
  • Maternity Allowance
  • Personal Independence Payment (PIP)
  • Pension Credit
  • Universal Credit
  • Working Tax Credit

Some mortgage lenders will only consider these benefits as income if you’re also employed or retired. A few won’t consider them at all.

The easiest way to find a lender who will take your benefits into account is to work with a mortgage adviser providing expert, human support (for example Habito or L&C). These experts will have detailed knowledge of lenders’ individual eligibility criteria and will be able to point you towards the best lender that’s willing to work with you.

Mortgage options if you’re disabled or ill

Your physical health won’t play a role in a lender’s decision on your mortgage application. In fact, it’s illegal for it to alter its offer based on your health.

However, a lender will place a lot of weight on your income, and this is why a lot of ill or disabled mortgage applicants struggle to secure a deal.

If your health is too poor for you to work, it could be difficult to earn enough to be approved for a mortgage, but it’s not impossible.

Can disability benefits count towards a mortgage?

Mortgage lenders will make a calculation on the maximum amount you can borrow based on your annual income. Some lenders will consider disability benefits when assessing your income, while others won’t.

Some will flat-out refuse to accept these payments as income, while others will only consider these benefits if you’re also employed or retired. Short-term disability benefits are unlikely to be accepted.

If disability benefits make up the majority of your income, it’s worth only approaching lenders who will consider these payments.

Again, the easiest way to find these lenders is by using a mortgage adviser. Mortgage advisers have specialist knowledge about the inner workings of lenders’ eligibility assessments and will be able to recommend to you the deals that you’re most likely to be approved for.

What home ownership support for disabled people is available from the govenment?

The HOLD – (Home ownership for people with a long-term difficulty) scheme works similarly to shared ownership, but a local housing association will buy the remaining share of the property. It’s the housing association that negotiates with the seller and mortgage lender on your behalf. You can only apply for this scheme if traditional shared ownership properties do not suit your needs. Read the Gov.uk overview.

My Safe Home is a specialist mortgage broker/adviser that helps disabled people access home ownership, often by arranging finance under schemes like HOLD.

There is nothing stopping disabled people from applying for a mortgage through normal means, provided they can afford it. In fact, it’s illegal for lenders to discriminate against applicants based purely on their disability.

Mortgage lenders’ policies on applicants with disabilities

Below, you’ll find information from 2026 about how some major UK banks and building societies can help out mortgage applicants with disabilities.

ProviderHow it can help
Aldermore Bank
  • Total allowable income for residential mortgage applicants must be at least £10,000 per year.
  • Universal Credit, Working Tax Credits, Child Tax Credits and Disability Living Allowance (DLA, in the applicant’s own name) are accepted at 100% of their value.
  • Income-related ESA, contribution-based ESA (Support Group only), Incapacity Benefit, Severe Disability Allowance, Industrial Injuries Disablement Benefit, Personal Independence Payment (PIP), Carer’s Allowance and Constant Attendance Allowance are accepted at 50% of their value.

Read what Aldermore says

Barclays
  • Disability benefit income (such as Personal Independence Payment) is acceptable, but any associated regular care costs the benefit is intended to cover must be declared and included as a credit commitment in the affordability assessment.
  • Documentary evidence is required for any benefit income used in an application.

Read what Barclays says

Coventry Building Society
  • Disability allowances and “all other state benefits unless otherwise stated” are explicitly listed as unacceptable sources of income.
  • Child benefit, child maintenance (where the child is under 13), state pension, private pension and occupational pension are among the limited benefit-related incomes the lender will consider.

Read what Coventry says

Halifax
  • Halifax’s consumer guidance lists “benefits, including tax credits, or disability allowances” among the income types it considers when assessing what an applicant can afford.
  • Disability Living Allowance (DLA) and Personal Independence Payment (PIP) are accepted at 100%, provided they are paid to the applicant rather than for a third party such as a dependant; any related costs the benefit is intended to cover must be declared as a credit commitment.
  • Other accepted disability-related benefits include Attendance Allowance, Carer’s Allowance, Constant Attendance Allowance, Employment and Support Allowance (ESA), Industrial Injuries Disablement Benefit, Armed Forces Independence Payments and Universal Credit.
  • Income Payment Protection (Scottish Widows plans only) is accepted as if it were Disability Living Allowance.
  • Evidence required is the latest bank statement or a benefit award letter dated within the last 12 months showing the applicant’s name and the value of the benefit.

Read what Halifax tells customers | Halifax broker criteria (full detail)

HSBC
  • Benefit income is only accepted if it can be guaranteed for the full mortgage term.
  • Evidence required for benefit income includes an official letter from the Benefits Agency or Department for Work and Pensions confirming the benefit, alongside evidence of any pensions, investments or rental income where relevant.

Read what HSBC says

Lloyds Bank
  • Lloyds Bank does not run a separate broker channel for residential mortgages, so its detailed lending criteria are not published in the same way as some sister brands; applications go direct via branch, phone, video appointment or online.
  • Lloyds Bank and Halifax are both part of Lloyds Banking Group and run common group affordability rules, so disability benefit income is treated in line with the Halifax policy described above. To be sure of how a particular benefit will be assessed, applicants are best speaking to a Lloyds mortgage adviser before applying.

Read what Lloyds Bank tells customers

Nationwide Building Society
  • Disability Living Allowance and Personal Independence Payment, “or any other benefit related to your health”, are accepted; the latest award letter from the DWP is the required evidence (Nationwide asks to see only the pages that show the benefit and amount, not any medical information).
  • Universal Credit, Working Tax Credits, Child Tax Credits, Employment and Support Allowance (ESA), Widowed Parent’s Allowance and Adoption Allowance are also accepted, evidenced by the last 3 months of bank statements showing the payments.
  • Nationwide’s broker criteria add further detail: Adult Disability Payment (Scotland), Child Disability Payment (Scotland), Attendance Allowance, Carer’s Allowance, Industrial Injuries Disablement Benefit, Reduced Earning Allowance, Armed Forces Independence Payment, Armed Forces Compensation Scheme and Infected Blood Support Scheme payments are all acceptable, with the latest award notice as proof.
  • If an applicant uses Armed Forces Independence Payment as income, PIP, DLA or Attendance Allowance cannot also be included.

Read what Nationwide tells customers | Nationwide broker criteria (full detail)

NatWest
  • NatWest’s consumer guidance asks applicants to flag any account into which benefits are paid so it can be included as proof of income for the mortgage application.
  • Disability Living Allowance (DLA), Personal Independence Payment (PIP), Employment and Support Allowance (ESA), Carer’s Allowance, Constant Attendance Allowance, Attendance Allowance, Industrial Injuries Disablement Benefit and Armed Forces Independence Payment are all listed as acceptable forms of income, keyed under “Other income”.
  • Constant Attendance Allowance is only acceptable if it is received together with DLA or PIP.
  • Carer’s Allowance can be used at 100%; Working Tax Credits can be used at up to 100%; and Universal Credit standard allowance is only accepted where the award letter shows the applicant is also employed.
  • Child Benefit can be included at up to 100% but is excluded entirely if any applicant earns £60,000 or more before tax.
  • Bereavement Allowance is not acceptable income for a mortgage application.
  • Evidence required is the latest benefit award letter or the latest 3 months’ consecutive bank statements showing the credits.

Read what NatWest tells customers | NatWest broker criteria (full detail)

Royal Bank of Scotland
  • Online RBS mortgages are now provided by NatWest (both are part of NatWest Group and offer the same products and rates), so the same disability-benefit acceptance rules apply.
  • That means DLA, PIP, ESA, Carer’s Allowance, Constant Attendance Allowance, Attendance Allowance, Industrial Injuries Disablement Benefit and Armed Forces Independence Payment are all acceptable as “Other income”, with the same restrictions as NatWest above (e.g. Constant Attendance Allowance only alongside DLA or PIP; Child Benefit excluded if any applicant earns £60,000+).
  • RBS asks customers to flag any bank account that benefit income is paid into when applying.
  • Evidence is the latest benefit award letter or 3 months’ consecutive bank statements showing the credits.

Read what RBS tells customers | NatWest broker criteria (which now apply, full detail)

Santander
  • State benefits from the DWP or HMRC that are confirmed as indefinite (the lender’s examples are Carer’s Allowance and Disability Living Allowance) are accepted as secondary income at 70%.
  • A letter from the DWP or HMRC confirming the amount and benefit type is required as evidence.
  • For Buy to Let applications, child benefit, child tax credit, working tax credit, pension credit and maintenance payments cannot be used to meet the £25,000 minimum income requirement.

Read what Santander says

TSB
  • TSB’s consumer FAQ confirms benefit income can be used in a mortgage application and “will make a positive difference”, but says the full list of acceptable income types must be discussed with a TSB Mortgage Advisor.
  • The detailed broker income guide accepts the following at 100% of their value (with an underwriter usually applying 60% in calculations): Attendance Allowance, Carer’s Allowance, Constant Attendance Allowance, Disability Living Allowance, Employment and Support Allowance, Industrial Injuries Disablement Benefit, Personal Independence Payment, and (in Scotland) Adult Disability Payment and Child Disability Payment.
  • Universal Credit is split out: standard allowance is accepted at 100% (60% used), and the disability and child elements (carer’s, disabled child, severely disabled child, LCW and LCWRA) at 100% (60% used). Working Tax Credits and Child Tax Credit are not accepted.
  • Evidence required is the latest bank statement or latest benefit award letter (within the last 12 months).
  • TSB became part of Santander on 30 April 2026; for now, mortgages remain held with TSB and the same TSB criteria apply.

Read what TSB tells customers | TSB intermediary income guide (full detail)

Virgin Money
  • A wide range of disability and welfare benefits is accepted: Adult Disability Payment, Carer’s Allowance, Child Disability Payment, Disability Living Allowance, Disabled Person Tax Credits, Employment and Support Allowance, Incapacity Benefit, Independent Living Fund, Personal Independence Payment, Reduced Earnings Allowance and War Disablement Pension.
  • Universal Credit is accepted only where any Housing Benefit element is deducted and at least one applicant earns a separate (non-benefit) income.
  • Child Benefit is accepted, provided no applicant earns more than £60,000 per year before tax.

Read what Virgin Money says

Yorkshire Bank
  • Yorkshire Bank no longer offers personal mortgages as a standalone brand: its mortgage business has been absorbed into Virgin Money, so applicants should refer to the Virgin Money entry above.

Read what Yorkshire Bank says

A note on sources for the table above: where a lender publishes the relevant detail on its main consumer-facing site, that page is linked first. Several major lenders only publish their full income criteria on their broker (intermediary) websites, which are technically aimed at mortgage advisers but are publicly accessible and represent the lender’s actual policy. Where that’s the case, the broker page is linked — the rules described still apply to applications made directly by a consumer. Decent, pragmatic advice services can offer a free and supportive way to navigate lender policies on income sources.

Home ownership schemes for people with low incomes

The government has created a range of schemes that could help you get onto the property ladder if you have a low income. Taking advantage of these could make it easier to get your mortgage application approved.

  • Right To Buy. If you live in a council or housing association property, you may be able to buy it at a huge discount using Right To Buy. You’ll need to have had a public sector landlord for at least 3 years to be eligible, but you’ll get a bigger discount the longer timeframes. You can apply to buy the property from your landlord via the Gov.uk website.
  • First Homes scheme. Launched in 2021, this gives first-time buyers in England the opportunity to buy their home at a 30% to 50% discount. Buyers must have a household income of less than £80,000 (or £90,000 in London) to qualify. The property must be a new home built by a developer or a home you buy through an estate agent, which someone else bought before through the scheme.

If you’re thinking of applying for a mortgage when you’re on benefits, make sure you factor in other costs such as arrangement fees, valuation fees and survey fees. These can quickly add up and eat into your budget.”

Rachel Wait, financial journalist

How to get a mortgage on benefits: A summary checklist

  1. Work out your income, including any benefits you receive.
  2. Research the benefits-related lending policies of different mortgage lenders before you apply.
  3. Consider using a mortgage broker if you want to save some research time or get a better idea of which lenders will accept your application.
  4. If you can’t get a mortgage to buy a house outright, consider any shared ownership schemes that may be open to you.
  5. You could also look at buying a house jointly with someone else to boost your borrowing capabilities (although remember your finances will be linked to theirs if you buy a property together).

How to boost your chance of mortgage approval

  • Borrow less. The less you need to borrow from a mortgage lender, the more likely you are to be approved for the loan. A smaller mortgage means lower repayments that you’re more likely to be able to afford. You can borrow less by saving a bigger deposit, looking to move into a cheaper house or taking advantage of the schemes listed above.
  • Reduce your outgoings. Lenders will check your recent bank statements to make sure you’re able to afford your mortgage repayments. By reducing your regular outgoings now, you’re more likely to get accepted. Start by haggling over the cost of your household bills and paying off any debt you’re paying interest on.
  • Apply jointly. You can apply for a mortgage jointly with up to 3 other people. All of your incomes will be considered jointly during affordability assessments, so this should dramatically increase the size of the mortgage deemed affordable to you. Bear in mind that you’ll be jointly responsible for clearing mortgage debt, even if only one of you has stopped making repayments. What’s more, all homeowners will have to agree on when the property is going to be sold.

The bottom line

It is possible to get a mortgage when you’re in receipt of benefits, although the total amount you can borrow will depend on your overall income, including those benefits and any salary you may have coming in. You can widen your options by looking at any relevant home ownership schemes or by buying jointly with someone else. Different lenders will have different applicant criteria and will accept different benefits. This means it could be worth using a mortgage broker who will have a broader knowledge of lending criteria and be able to help you find the right deal.

If you are on certain types of benefit, you may also qualify for a Support for Mortgage Interest (SMI) loan from the Department of Work and Pensions (DWP). This helps pay towards the interest on your mortgage, and you can apply if you own your home or if you’re in a shared ownership scheme. Citizens Advice says: “The DWP will charge interest on the SMI loan – this means you’ll pay back more than you borrowed. Even though you’ll pay interest, it could be cheaper than other ways of borrowing money. You’ll need to pay back the loan, but usually only when you sell your home or give it to someone else.”
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Sources

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To make sure you get accurate and helpful information, this guide has been reviewed by Rachel Wait, a member of Finder's Editorial Review Board.
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Matthew Boyle is a banking and mortgages publisher at Finder. He has a 7-year history of publishing helpful guides to assist consumers in making better decisions. In his spare time, you will find him walking in the Norfolk countryside admiring the local wildlife. See full bio

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Matthew has written 221 Finder guides across topics including:
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