For individuals who are on benefits, there are in fact several choices available for you when it comes to claiming a mortgage. The options open to you will depend on whether your benefits are an additional payment on top of your salary, or if you rely solely on benefits. Today, we will be discussing the options you have for mortgages on benefits.
Whilst it is possible to get a mortgage on benefits, the likelihood is that the application will be more complex, which is why we are here to break it down.
If you are employed and claim benefits, then there will be more lenders who you could borrow from. As with all mortgages, you will have to meet certain criteria, such as having a good credit score and being able to show proof of your employment and salary.
In certain circumstances, it will be possible to get a mortgage even if you are unemployed and claim benefits. Some lenders will be open to consider you and the benefits can be used towards your income and affordability assessment.
There are pros and cons to your mortgage application if you are on benefits. Some positive factors include that you will have greater borrowing power, that the option is suitable for low-income households, and you will have greater support towards affordability.
The downsides are that not all lenders count income from benefits, and certain benefits may not be accepted by lenders. For lenders, it could be viewed as risky to give you a mortgage.
On the whole, if you are on benefits, then it is a good idea to get in touch with a professional to receive advice on what you could do in your specific circumstances. Here at Eminence Mortgages, we would be more than happy to help.