Can I get a mortgage while claiming benefits?

Entering in to a mortgage agreement with a lender is a big financial commitment and before you decide to take out a mortgage you need to seriously ask yourself, can I afford to get a mortgage? Most mortgages are paid back over a term of around 25-years, this is a long time to be making payments and you should be certain you are financially prepared for the commitment. Some banks will not consider taking applications from people on benefits, however, many others choose not to discriminate against a person just because of how they get their income.

It is also possible you will receive further help from the government in paying for your mortgage, once you have successfully acquired one. This is regardless of whether you were on benefits at the time of your application or not. The government will help mortgage-holders out by paying the interest on their mortgage, this reduces your repayments and makes things a little easier on your finances. It is important to note that the government will only consider making mortgage interest payments on mortgages of £200,000 or less.

If you have seriously asked yourself can I afford to get a mortgage?, then you can take the next step of filling out your mortgage application with your chosen lender. The process is exactly the same as with an employed person or someone who receives no benefits. The only difference being the income they use to calculate how much you are able to borrow will be based on your benefits income.

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