Head of Content
Mortgage Advisor & Director
Can I get a mortgage with Universal Credit?
Yes, it may be possible to get a mortgage with Universal Credit.
There are some lenders that accept Universal credit as an income as part of their affordability calculations. However, approval is likely to be conditional on any other income you have, any other assets, and the amount of deposit you have to contribute.
You may qualify for Universal Credit payments if you're unemployed or on a low income, and there may be other government schemes you may consider to help improve your chances of owning a home. For example, the Right to Buy and Right to Acquire schemes allow people living in council housing or housing association housing to buy their home at a discounted rate.
If you're already a homeowner, you may also qualify for Support for Mortgage Interest (SMI). This is a loan to help homeowners towards the cost of mortgage interest payments, be repaid with interest when the home is sold.
How to boost your chances of getting a mortgage with Universal Credit
There are steps you can take ahead of your mortgage application to improve your chances of approval.
As well as having a stable income, lenders will be interested in your credit rating to check you're a reliable borrower. If you need to improve your credit score, there are things you can do now:
- Register on the electoral roll if you haven't already
- Check your credit record with the major agencies and apply to have any mistakes rectified
- Manage your credit wisely and make repayments on time
Learn more and get started now
Your best chance of approval is by using an experienced mortgage broker.
Not only will they be able to identify the lenders who are most likely to accept Universal Credit as a declarable income, but they can also help to tailor your application to improve your approval chances.
At Teito, we're a whole of market mortgage broker, which means we have access to deals from more than 100 lenders, including those who specialise in benefits mortgages. Get started now, and we promise to make your mortgage journey as stress-free as possible!
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Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.
Last updated 29 February 2024