Using Benefits for Your Mortgage Affordability

The answer to this question is complex, and isn't the same for all lenders.  

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Working with the whole of market gives me great insight into the differences in attitude towards benefit income and what a different lenders will and will not accept. 

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Most, if not all lenders will accept forms of benefit income towards affordability. They may accept only certain forms, or for certain periods of time. 

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For example, HSBC will accept child related benefits towards affordability but only if the child related benefits will endure through the entire term of the mortgage, if not they will not be taken into account at all. 

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Some lenders will accept a percentage of certain benefit income towards your affordability. 

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Leeds Building Society will accept certain benefit incomes at 100%, however, your employed income must make up at least 50% of your total income. 

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The rules are varied depending on the lender, the type of benefit income and the length of time the income will be received. 

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So, the answer to this question is really to dig into the research, to get the right answer for you, this is one of those criteria which will be different for each person. This is where a good broker can help.