Santander has announced that, starting from Monday 18th March, Universal Credit will be considered an acceptable form of secondary income for mortgage applicants.
This update does not affect the lender’s stance on other types of benefit income, which remain unchanged.
For a client’s Universal Credit income to be eligible, they must also have a primary source of earned income, either through employment or self-employment. This requirement must be verified within the Universal Credit award statement provided by the client.
To evidence Universal Credit income, applicants are required to submit specific documents accessible through the Universal Credit online account. These include proof of the last six months’ Universal Credit payments and the most recent payment summary, detailing entitlements, deductions, and the total payment for the month. It is important to note that Santander will not accept bank statements as proof of Universal Credit income.
When calculating the Universal Credit income for mortgage applications, Santander will average the payments received over the last six months, excluding the housing benefit portion from the latest month.
Prospective borrowers are encouraged to use Santander’s affordability calculator, which automatically adjusts the income calculation and provides a net monthly income figure based on the lender’s criteria.
