Whether or not the child benefit or child maintenance payments you receive will be classed as income depends on the mortgage lender. Some banks will take 100% of your child support into account once it’s been paid for a few months, some might consider a percentage of it, and others may ignore it altogether.
As a single parent, you may be eligible to receive child benefit or child tax credit, and many lenders will accept it as part of your income.
If you’re receiving child support payments from a former partner, these are also taken into account when assessing your income.
You’ll also need to have sufficient income and meet the lender’s credit criteria for approval, just like any other loan.
We asked some of the UK’s major mortgage lenders about their policies on mortgage applicants receiving child benefit or child tax credit. Here is what they told us.
| Provider | What it told us | Compare |
|---|---|---|
| Barclays | We can take up to 100% of the benefit income into account when assessing affordability. | Compare with broker |
| Halifax/Lloyds Bank/Bank of Scotland | Child benefit allowance and child tax credit will be considered within our affordability assessment. | Compare with broker |
| Santander | 100% of an applicant’s income from child benefit and child tax credit will be considered during affordability assessments. | Compare with broker |
| Virgin Money | Child benefit and child tax credits are not acceptable forms of income for the purposes of affordability. | Compare with broker |
| Yorkshire Bank | Applicants earning child benefit allowances and child tax credit will all be considered. | Compare with broker |
Trying to put together a deposit for a home while raising a child on a single income can be difficult, especially as the costs of both are increasing. Take note of the following if you’re looking for ways to save for a home and you’re the provider for a dependent child.
Mortgage brokers specialise in helping borrowers in difficult or unique circumstances, including borrowers receiving government benefits. They can help you find lenders who accept government assistance as a source of income, and will help you work out how much you’ll realistically be able to borrow to avoid being rejected for a loan. Mortgage brokers get a commission from the lender, meaning you don’t have to pay for their help. L&C is a fee free mortgage broker with specialists who can offer advice.
Many lenders accept child benefit and child support payments as a contributing factor to your income. Like any loan, so long as you meet the lender’s credit criteria and have evidence of sufficient income, you should not have any difficulty in securing a mortgage.
| Response | Male | Female |
|---|---|---|
| Yes | 60.05% | 51.36% |
| No | 39.95% | 48.64% |
How to improve your chance of being approved for a mortgage if you are receiving benefits.
Lenders have a range of mortgages available to temporary contract or zero-hour contract workers. Find out how you can maximise your chances of approval and get into a new home sooner.