Getting a mortgage while on benefits and not working ⁰

Hi I’m new to this group. I have been diagnosed with relapsing remitting since 2014. I have never had any advice or even talked to anyone apart from MS Nurse. I don’t feel I’ve ever accepted it. I am ill health retired. I am separating with my husband and have been told by Bank of Scotland that they don’t accept Universal Credit for mortgage unless you are working. I’m so stressed out and have to wait for appointment with financial advisor.
Could someone tell me if it is possible. Thank you

Hi Gill
Am sorry to say it’s unlikely. UC is designed to provide a basic subsistence level rather than a living wage or a working wage. Rather than a flat ban on UC as a source, you’re more likely to fail on affordability criteria. My daughter as a first-time buyer has just gone through the forms where they ask about all income and expenditure and it’s incredibily detailed these days.

I’m really sorry but I have to agree with GCCK, you will not be able to get a mortgage on benefits. Lenders require proof of a certain level of income to show you can afford the mortgage payments after monthly outgoings.

may i ask is there a house involved to sell? I had to sell my house when my husband died, because it was just way too big for me. I got a good price for it. I saw the perfect bungalow for me, which i could afford cash, but it all fell through. After that there was nothing to buy suitable, so i contacted my local council and with letters to confirm my disability etc i was put on housing list, and ended up in sheltered.

I did see a nice place i liked but i didnt have enough money so i contacted the HSBC bank and with my pension rate they would have given me a loan. again this went so that was out. Perhaps you could turn to your local council for support? I am sorry you have to seperate its never easy no matter the reasons for it. x

There are, of course, more mortgage lenders to turn to if you are working and receiving benefits. It can make mortgage approval easier as you have more options. You can get a mortgage if you’re unemployed and claiming benefits, but only under certain circumstances. Mortgage approval will not be easy, and your options will be limited. Not many lenders are willing to lend to unemployed applicants, even if you can afford to pay off your mortgage with the benefits you receive. There are mortgages for those on disability benefits, but lenders are limited. From what I have seen, I know only one such lender - Mortgage Advice Sunderland.

I know my reply is a bit late, but I wanted to say that getting a mortgage while on benefits and not working can be challenging, as lenders often require a stable income source. However, each situation is unique, and there might be options available to you. Waiting for your appointment with a financial advisor is a good step. They’ll have the expertise to assess your situation and provide tailored advice. In the meantime, you can also explore other lenders or consult with independent specialists, like Mortgage Broker in Warrington or nearby areas. They can provide personalized advice based on your specific circumstances.

Well, the rates depends on things like your credit score and the type of mortgage you’re looking for. If you want to know the exact rates, I’d recommend getting in touch with a Mortgage Broker in Chester. They’ll have all the latest and most accurate information for you. They can guide you through the process and help you find the best rates that fit your needs.

Hi there, guys. What’s the current mortgage rate?


Makes affordability based on UC even further away

Obtaining a mortgage while on benefits and not working can be more complex, but it’s not impossible. It’s great that you’re seeking advice from a financial advisor. They can provide you with specific guidance tailored to your situation. You might also consider reaching out to a Mortgage Broker in Cheltenham for expert advice. They can explore alternative financing options and help you understand the possibilities available to you.