Does Universal Credit, Pension Credit or Child Benefit count as income for a mortgage?

Some lenders may include Universal Credit, Pension Credit and parts of Child Benefit in affordability, often alongside salary, wages or other accepted income. Policies differ. Lenders will ask for award letters, recent bank statements and may consider the Housing Costs Element within Universal Credit where relevant. Your credit history and overall budget still drive the decision.

What is Support for Mortgage Interest (SMI) and how does it work?

Support for Mortgage Interest is a government loan administered by the Department for Work and Pensions for eligible claimants on certain income-related benefits (for example Pension Credit or Income Support).

It helps with the mortgage interest portion only; you must still repay the capital on your mortgaged property and the SMI loan itself if you sell or transfer ownership. It is separate from Housing Benefit (legacy) or the Housing Costs Element in Universal Credit.

I am a foster carer. Can my fostering income be used?

Yes, some lenders may consider foster carer payments with a clear track record on statements or remittance advice. Expect standard checks on credit scoring, lending criteria, LTV limits and a stress test of repayments. If you have mixed income (for example fostering plus employment), lenders look at the whole picture.

I work variable shifts in a care job or I am a zero hours contractor. What will lenders ask for?

Care roles often include overtime and variable hours. Lenders may take a proportion of regular overtime or shift allowances where evidenced. Zero hours contractors can be accepted by some lenders with sufficient history. Typical documents: payslips, HMRC tax calculations (SA302), NI contributions record if self-employed, and bank statements. A Decision in Principle (DIP) can show early if a case is in scope.

I receive Disability Living Allowance, Employment and Support Allowance or Jobseeker’s Allowance. Can I still apply?

Receiving Disability Living Allowance (DLA), Employment and Support Allowance (ESA) (including Income-based ESA) or Jobseeker’s Allowance (JSA) does not automatically prevent a mortgage. Lenders assess affordability, stability of income and credit history. Evidence from Jobcentre Plus or award letters will be required. Some lenders may also consider Income Support or State Pension.

Which government schemes or ownership routes can help carers?

Depending on where you live, options may include Shared ownership, Right to Buy or Right to Acquire, and local government schemes from your local authority. Rules change, so check current guidance and how each route is assessed for affordability. For landlords changing home, some lenders also offer Let to Buy (subject to criteria).

Can rental income be used?

For a buy-to-let, lenders focus on rental income and apply an interest cover stress test. For residential mortgages, some lenders consider limited rental income when calculating overall affordability. Policies vary, and LTV limits and tax treatment matter.

What if I have credit issues, credit rejection or mortgage arrears?

Lenders look at the recency and severity of any credit rejection, defaults, CCJs, or mortgage arrears. If you are in an Individual Voluntary Arrangement (IVA) or have recently resolved one, options narrow but can still exist with specialist lenders. Up-to-date statements and a clear explanation help underwriters.

Do accessibility or equality considerations apply when getting advice?

Yes. Firms must comply with the Equality Act. If you need accessible communication (for example British Sign Language interpretation), let the adviser or lender know so they can arrange adjustments.

What documents should carers prepare before using an affordability calculator or seeking a Decision in Principle?

  • Benefit award letters (for example Carer’s Allowance, Universal Credit, Pension Credit) and recent bank statements
  • Payslips and P60 if employed; HMRC Tax Calculations and Overviews or accounts if self-employed (to show business profits)
  • NI number and proof of National Insurance contributions where relevant
  • Photo identification, proof of address, and a list of regular housing costs and rental payments (if any)
    Using a lender’s affordability calculator is a good first step, followed by a Decision in Principle to confirm whether the case fits current employment criteria and lending criteria.

Are care home loans a thing, and can care home staff apply for standard mortgages?

“Care home loans” is not a standard retail mortgage product name. Most care home staff apply for standard residential or buy-to-let mortgages, assessed in the usual way. Title, contract type and income evidence still matter, including for Temporary Workers on agency contracts.

Who should I speak to first: a mortgage broker or an independent mortgage adviser?

An experienced mortgage broker or independent mortgage adviser with whole-of-market access can explain lending criteria, check documents, and match you with lenders that may include your income mix (for example Carer’s Allowance, Pension Credit, part-time wages). They can also advise on documentation from the Pension Service, local Council Tax Support, or local authority scheme rules where relevant.