Not all mortgage lenders accept benefits and the ones which do may not accept all the benefit you receive in particular criteria. If most of your proof of income for your mortgage is based around benefits then you should seek mortgage lenders who accept the benefits you have and as much as possible of it.
Some of the benefits mortgage lenders accept include:
- Attendance Allowance benefit
- Carer’s Allowance benefit
- Child Benefit
- Child Tax Credit benefit
- Disability Living Allowance (DLA)
- Incapacity Benefit (IB)
- Industrial Injuries Benefit (IIB)
- Maternity Allowance benefit
- Pension Credit benefit
- Severe Disablement Allowance
- Widow’s Pension benefit
- Working tax credit benefit
Some mortgage lenders may accept child benefit for example but only up to 50% as proof of income while another lender may accept child benefits but up to 100% towards your proof of income.
If child benefits is a big determinant of your income then you may prefer a lender who accepts as much of child benefit as possible towards proof of mortgage income.
Aside from accepting benefits towards income, some mortgage lenders may have specific criteria that you may need to meet before they will accept the benefit.
In the case of child benefits, the mortgage lender may require to see a court order or they will not accept child benefits towards your income.
Some other mortgage lenders may accept child benefit but may only require a payment scheduled from the court or your bank statements for 12 months showing recurring child benefit payments each month. This can then be used to attribute your child benefits into your income.
List of Mortgage lenders who may accept benefits
Mortgage lender criteria can change at any time so some of the lenders on this list may no longer accept any benefits or the criteria for which they accept benefits towards your proof of income may have changed.
The mortgage lenders that accept benefits include:
- BM solutions
- Chelsea building soc.
- Clydesdale Bank
- Co-operative Bank
- Coventry Building Soc.
- Darlington Building Soc.
- First Direct
- Furness Building Soc.
- Hanley Economics Building Soc.
- Hinckley and Rugby Building Soc.
- Kent Reliance
- Leeds Building Soc.
- Manchester Building Soc.
- Market Harborough Building Soc.
- Metro Bank
- Mortgage Trust
- Nationwide Building Soc.
- Newcastle Building Soc.
- Nottingham Building Soc.
- Paragon Mortgages
- Precise Mortgages
- Scottish Widows Bank
- Skipton Building Soc.
- The Mortgage Works
- The Woolwich
- Tipton & Coseley Building Soc.
- Virgin Money
- The West Brom
The list above of mortgage lenders that accept benefits should not be takenas a guide as mortgage lenders may change their lending criteria at anytime without warning.
If benefits are a major part of your income then you should convey this to your mortgage broker so they can cater to this.
If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.
You can also contact the debt charity “Step Change” if you are in debt and need help.