88% of working people in the UK said non-permanent disability living allowance (DLA) should not count as income in mortgage applications, research from Boon Brokers found.
The survey, carried out by TLF Research with 1,000 respondents across the UK, looked at views on using benefits as income when assessing mortgage affordability.
81% of workers did not know that benefits can be used as income in mortgage applications.
78% said it was unfair that the Financial Conduct Authority (FCA) lets lenders include benefits as income.
Meanwhile, 76% of workers said allowing benefits in mortgage decisions puts people off returning to work.
Respondents were shown a list of common benefits accepted by some lenders: personal independence payments, attendance allowance, maternity allowance, universal credit, disability living allowance, pension credit, child benefit and carer’s allowance.
Most were unaware these could be used in mortgage applications.
Gerard Boon, managing director at Boon Brokers, said: “It stands to reason that if people can function with benefit income and have the ability to purchase property with it, it creates a disincentive to return to the workplace.
“This is clearly the overwhelming view from the general public.”
