Mortgage on Universal Credit Universal Credit Can Count as Income
Universal Credit can count as income for mortgage purposes with specialist lenders. The key question is whether Universal Credit forms part of a stable ongoing income alongside employment or self-employment income or whether it is the sole income source.
🏦 What Lenders Look At
- Whether Universal Credit is supplementing employment income or is the sole income
- The type of Universal Credit — work allowance elements are more accepted
- Stability and ongoing nature of the Universal Credit award
- Total income including all sources
- Deposit size and overall affordability
❓ Common Questions
Does Universal Credit count as income for a mortgage?
It depends on the lender. Mainstream lenders typically do not count UC. Specialist and some building society lenders will consider UC particularly when it supplements employment income.
What evidence do I need of Universal Credit income?
You will need your Universal Credit award letter or statement showing the amount and elements of your award plus bank statements showing regular UC payments.
Does it matter which elements of Universal Credit I receive?
Yes. Lenders treat different UC elements differently. The standard allowance is most commonly accepted. The housing cost element is typically excluded.
Can I get a mortgage on UC with bad credit?
Universal Credit income plus adverse credit simultaneously is a complex profile. Specialist lenders who accept both situations do exist.
What if I am on UC because I am a carer?
Carers allowance and the carer element of Universal Credit are considered as income by some lenders. The stability and ongoing nature of the caring role is important.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP YOUR REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER LOAN SECURED AGAINST IT.
This page is for general information only and does not constitute regulated financial advice. The Mortgage Geezer is a trading style of Access Financial Services Ltd who are authorised and regulated by the Financial Conduct Authority. The Financial Services Register number is 301173. Registered in England No. 04427489. Registered office address Access Financial Services Ltd, Unit 1 Furtho Court, Towcester Road, Old Stratford, Milton Keynes, MK19 6AN.