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If you receive benefits and own your home, you may still be able to get a secured loan.
Some specialist lenders accept benefits as income when assessing whether you can afford the repayments. Depending on the lender, this can include Universal Credit, Personal Independence Payment (PIP), Disability Living Allowance (DLA), Carer’s Allowance and other benefits.
You may even be eligible if benefits are your only source of income, although fewer lenders will consider these applications and additional conditions may apply.
At Willows Finance, we work with specialist secured loan lenders that assess different types of benefit income. We can help establish which benefits a lender may accept, how much of that income they will count and what evidence you’ll need.
Yes, potentially. Some specialist secured loan lenders will consider applications where benefits are the applicant’s only source of income.
However, eligibility depends on the type of benefits you receive and the lender’s affordability requirements.
For example, a lender may be willing to consider an applicant receiving regular disability benefits, but apply different criteria to someone receiving unemployment-related benefits.
Some lenders may also require another source of household income or a joint applicant who is employed.
The lender will want to establish:
Which benefits you receive
How much you receive and how often
Whether the payments are expected to continue
Your existing financial commitments and living costs
Whether you have sufficient equity in your property
Whether the proposed loan repayments are affordable
Receiving benefits doesn’t automatically prevent you from borrowing, but it doesn’t guarantee eligibility either.
If benefits are your only income, tell us which ones you receive. We can check which specialist lenders may consider your circumstances before you proceed.
Different lenders accept different benefits, and some apply restrictions on how the income can be used.
The following table provides a general guide to the benefits that may be considered.
| Benefit | Can lenders consider it? |
|---|---|
| Personal Independence Payment (PIP) | Yes, some lenders accept it |
| Disability Living Allowance (DLA) | Yes, some lenders accept it |
| Carer’s Allowance | Yes, accepted by many lenders |
| Universal Credit | Yes, subject to lender criteria |
| Employment and Support Allowance (ESA) | Yes, some lenders accept it |
| Jobseeker’s Allowance (JSA) | Some specialist lenders may consider it |
| Income Support | May be accepted for existing claimants |
| Housing Benefit | May be considered, with restrictions |
| Industrial Injuries Disablement Benefit | Yes, some lenders accept it |
| Working Tax Credit | May be considered for any remaining legacy payments |
| Widowed Parent’s Allowance | May be accepted for existing recipients |
This is a guide to potential lender acceptance, not a guarantee. Lenders may count only part of a benefit, require other income or exclude particular payments from affordability calculations.
Our advisers can help you establish which lenders may accept your particular combination of benefits.
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Yes. Many secured loan lenders accept Carer’s Allowance as a source of income.If you receive Carer’s Allowance because you provide regular care for someone, a lender may include the payments when assessing your ability to afford a secured loan.
You may need to provide an award letter or other evidence confirming the amount you receive.Some lenders will also want to understand whether the payments are expected to continue during the proposed loan term.
If you receive Carer’s Allowance alongside employment income, pension income or other benefits, the lender may be able to consider more than one income source. At Willows Finance, we can check which lenders accept Carer’s Allowance and whether they require additional household income.
Yes. Some specialist secured loan lenders accept Personal Independence Payment (PIP) as income. PIP is a benefit intended to help with additional living costs associated with a long-term health condition or disability.
When reviewing your application, the lender may ask for evidence of your current PIP award, including the amount received and the award period.
Different lenders may treat PIP differently.
For example, one lender may include the payments in its affordability calculation, while another may apply restrictions or take account of the additional costs the benefit is intended to cover. If PIP is your only income, some lenders may still consider an application, although the available options could be more limited.
Our advisers can check how individual lenders assess PIP and what supporting documents they require.
Yes. Some secured loan lenders accept Disability Living Allowance as income.
DLA is still received by certain existing claimants, including some adults and children, although many working-age adults have moved to PIP.
If you receive DLA, the lender may ask for an award letter confirming the payment amount and how long the award lasts.
The lender may also consider whether the payments are expected to continue during the loan term.
Where DLA is paid for a child, the lender may apply additional conditions or assess the income differently from benefits paid directly to an adult applicant.
Not all lenders accept DLA in the same way, so it’s worth checking the criteria before applying.
Yes. Some specialist secured loan lenders accept Universal Credit as part of an affordability assessment.
Universal Credit can include different elements depending on your circumstances, such as support relating to employment, children, housing or health.
The lender may not treat every element of your Universal Credit payment in the same way.
For example, some lenders may consider certain regular elements as income while applying restrictions to housing-related payments or other amounts intended for specific expenses.
The lender may ask for recent Universal Credit statements showing how your monthly payment is calculated. If your Universal Credit changes because of earnings, household circumstances or deductions, this may also affect the amount the lender is willing to use.
If you receive Universal Credit alongside wages or other benefits, our advisers can check how the different income sources may be assessed together.
Getting a quote won’t affect your credit score
Yes. Some secured loan lenders accept Employment and Support Allowance as income. ESA is available to eligible people whose ability to work is affected by illness or disability.
The lender may want to know which type of ESA you receive, how much you’re paid and whether the income is expected to continue. Some lenders may accept ESA alongside other benefits or employment income, while others may consider it as the main source of income. Depending on the lender, you may need to provide an award letter, recent statements or bank statements showing the payments. If ESA is your only income, we can check whether any suitable specialist lenders may consider your application.
Potentially, although the options may be more limited.Some specialist lenders may consider Jobseeker’s Allowance when reviewing an application, but unemployment-related benefits can be treated differently from longer-term benefit income.
This is partly because the lender needs to be satisfied that the repayments will remain affordable throughout the loan term.
Some lenders may require additional income from another applicant or household member.
Others may not accept JSA as the sole income source.If you’re currently receiving JSA, we can check which lenders may consider your circumstances and whether another income source would be required.
Some lenders may consider Housing Benefit, but its treatment can be more restrictive than other forms of benefit income.Housing Benefit continues to be paid to certain eligible claimants, although Universal Credit has replaced it for many people. Because Housing Benefit is intended to help with eligible housing costs, lenders may exclude it from their affordability calculation or assess it differently.For a homeowner applying for a loan secured against their own home, the lender will need to understand the nature of the Housing Benefit payment and whether it is relevant to the application.
It’s therefore important not to assume that Housing Benefit will automatically increase the amount you can borrow. If you receive Housing Benefit, tell us about your circumstances so we can check how a suitable lender would assess it.
Yes. Some secured loan lenders accept Industrial Injuries Disablement Benefit as income.This benefit provides support to eligible people who have become disabled because of certain work-related accidents or diseases.When reviewing your application, a lender may ask for evidence confirming the award amount and payment arrangements.
The lender may also consider whether the benefit is expected to continue throughout the proposed loan term.
If you receive Industrial Injuries Disablement Benefit alongside a pension, wages or other benefits, it may be possible for a lender to consider several income sources together.Our advisers can check which lenders accept this benefit and what evidence they require.
Some secured loan lenders may consider bereavement-related benefits, but the type of payment matters.Widowed Parent’s Allowance is a legacy benefit received by certain existing claimants. Bereavement Support Payment is a different benefit, generally paid over a limited period to eligible recipients.
Because Bereavement Support Payment is time-limited, a lender may be less willing to rely on it to support repayments over a longer secured loan term.
If you receive either benefit, the lender may ask for an award statement showing the amount and expected duration of the payments.Our advisers can check whether a specialist lender may accept the income and whether additional income would be required.
We’re extremely proud to be rated ‘Excellent’ for our service standards. We’ve helped thousands of customers across the UK over the last 15 years to find the right finance for their needs – no matter how complicated the circumstances. And we look forward to helping you.
The documents required will depend on the benefits you receive and the lender’s criteria.You may be asked for:
Benefit award letters
Recent Universal Credit statements
Bank statements showing benefit payments
Evidence of how long a benefit award is expected to last
Details of employment, pension or other income
Information about your existing mortgage
Evidence of your regular financial commitments
Some lenders may also ask for updated benefit statements if your circumstances have changed recently.You won’t necessarily need every document listed above.At Willows Finance, we can help you establish what a suitable lender will need before you submit an application.
The amount you may be able to borrow depends on several factors, including your accepted income, monthly outgoings and available property equity.
A lender will normally consider:
Which benefits it accepts as income
How much of each benefit it includes in affordability
Your mortgage and other debt repayments
Your household living costs
Your property’s value
The amount already secured against the property
Your credit history
For example, two homeowners receiving the same amount in benefits could qualify for different loan amounts if their mortgage payments, other commitments or property equity differ.The fact that a lender accepts your benefits doesn’t mean it will lend a particular amount.
Our advisers can help you understand which lenders may consider your income and whether the proposed repayments appear affordable.
Potentially. Some specialist secured loan lenders consider applications involving both benefit income and adverse credit.
However, the combination can make finding a suitable lender more difficult.
The lender may consider the type and age of any credit problems, your current repayment history, your available equity and whether your benefit income is acceptable.
For example, a historic satisfied default may be assessed differently from recent mortgage arrears or an active insolvency arrangement.
Interest rates may also be higher where the lender considers the application higher risk. If you’re receiving benefits and have experienced credit difficulties, we can check which specialist lenders may be willing to consider both circumstances.
A secured loan may be suitable for some homeowners receiving benefits, but affordability is particularly important if your income is limited or could change.
Before applying, consider whether you could continue making repayments if:
Your benefit award changed
Your household circumstances changed
Your regular living costs increased
You needed to meet unexpected expenses
You should also consider whether the money is needed immediately or whether a different source of support or borrowing would be more appropriate.
If you’re already struggling with debt or essential household bills, free debt advice may be more suitable than taking on additional borrowing.
Because a secured loan is backed by your property, failing to maintain repayments can put your home at risk.
Receiving benefits doesn’t automatically prevent you from getting a secured loan.
At Willows Finance, we work with specialist lenders that consider different benefit types, including some applications where benefits are the only source of income.
Our advisers can help establish which benefits a lender may accept, whether additional income is needed and what evidence you’ll have to provide.
Receiving PIP, DLA, Universal Credit, Carer’s Allowance or another benefit? Tell us which payments you receive so we can check the most relevant lender criteria.
Request a free, no-obligation quote or call 01656 766 158 to speak with one of our experienced advisers.
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PRIVACY OF YOUR INFORMATION
At Willows Finance Ltd, we appreciate that your privacy is extremely important to you. With this in mind, we have put in place a number of measures to ensure that any personal details we obtain from you as a result of visiting this website is processed and maintained in accordance with accepted principles of good information handling and also in accordance with the Data Protection Act 1988.
This statement provides you with details of the type of information we may hold about you, how we obtain and use information and how we protect your privacy.
Willows Finance Limited
Brocastle, Bridgend, CF35 5AS
Authorised and regulated by the Financial Conduct Authority
Firm Reference Number: 670052
Company Number: 06678545 (Registered in England and Wales)
This document explains the services we provide, the range of lenders and products we consider, how mortgage advice may be provided, and how Willows Finance may be paid. Please read it carefully before proceeding with an application.
If you need clarification about any part of this document, please contact us on 01656 766158.
Willows Finance arranges first and second charge mortgage products. Depending on the circumstances of the application, these may include:
We also arrange both regulated and unregulated bridging finance.
Not every product will be suitable or available to every customer. The products considered will depend on your circumstances, borrowing requirements, purpose of the borrowing, property, intended use of the property and the relevant lender criteria.
Depending on your circumstances, Willows Finance may:
If you are looking to increase borrowing secured on a property which already has a regulated mortgage, there may be different ways of raising the additional funds. Depending on your circumstances, these may include:
Where applicable, we will make you aware of these alternatives before proceeding. The options we are able to assess or advise on will depend on the service being provided and the lenders available to us.
The regulatory status of a mortgage or bridging loan depends on the circumstances of the transaction, including the property, how it is or will be occupied, the purpose of the borrowing and the customer’s circumstances.
Our business includes:
We will identify the regulatory status applicable to your application and explain the service and protections that apply. The protections available to you can differ depending on the type of mortgage or loan.
The range of lenders and products we consider depends on the type of finance you require.
We offer a comprehensive range of second charge mortgages from across the relevant market using a representative panel of lenders. We review our panel regularly to ensure that it remains sufficiently broad and representative. We do not consider products that are only available by applying directly to a lender.
We only offer first charge mortgages from a limited panel of 13 lenders. We consider the first charge mortgage products made available to us by Kensington Mortgages, The Mortgage Works, Aldermore, United Trust Bank (UTB), Together, Masthaven, West One, Norton, Bluestone, Vida, Pepper Money, Mansfield Building Society and Nationwide Building Society.
We do not offer every first charge mortgage available from across the market.
We consider products from a range of lenders available to Willows Finance for the relevant transaction.
Consumer Buy-to-Let and unregulated Buy-to-Let applications are considered within the relevant first charge, second charge or bridging route, depending on the structure of the transaction.
We do not provide a whole-of-market service and do not claim to consider every mortgage or secured finance product available in the UK. Our assessment is based on the lenders and products available through our lender and distribution arrangements.
Where the applicable regulatory rules require us to identify the lenders whose products we offer, the relevant lender list will be provided to you in a durable medium as part of the initial disclosure for your application. A lender list is also available on request where applicable.
The service provided will depend on the lender, product and application route identified for your circumstances.
Where Willows Finance provides the mortgage advice, we provide an advised mortgage broking service. We will obtain information about your needs and circumstances, assess the lending options available within the scope of our service and, where appropriate, make a mortgage recommendation.
We will make it clear where Willows Finance provides the mortgage advice and recommendation.
We may also provide a packaging service. This is a non-advised administrative service under which we may collect information and supporting documents, complete administrative checks, liaise with the relevant parties and submit or progress an application.
When we provide a packaging service, we do not assess the suitability of the mortgage, provide mortgage advice or make a personal recommendation. Any regulated mortgage advice or recommendation will be provided by the appropriately authorised intermediary responsible for advising you.
Our packaging service is not a regulated advisory service. However, the mortgage itself and any arranging activity connected with it may still be regulated and subject to the applicable regulatory requirements. We will explain the nature and regulatory status of the service we are providing before you proceed.
For some applications, particularly certain second charge mortgage applications, our sourcing exercise may identify a route where the subsequent mortgage advice is provided by another regulated mortgage intermediary.
In these cases, the Willows Finance service may include:
After the introduction, the receiving intermediary may take over the detailed application, advice and recommendation process. We will make it clear where this type of referral arrangement applies.
Where our sourcing process identifies Evolution Money Limited as an appropriate route and we introduce your application to Evolution Money, Willows Finance will not provide the regulated mortgage advice or make the final mortgage recommendation in relation to the Evolution mortgage.
Following the introduction, Evolution Money Limited will take over the detailed application and advisory process. Evolution Money will assess your needs and circumstances and will be responsible for any regulated mortgage advice and recommendation it provides in relation to the Evolution mortgage.
Willows Finance remains responsible for the service it provides before and in connection with the referral, including its initial assessment, sourcing and introduction activity.
If you are experiencing financial difficulty, or if you are considering borrowing to consolidate existing debts, free and impartial debt advice is available from MoneyHelper and other free debt-advice organisation.
MoneyHelper: www.moneyhelper.org.uk
You should consider obtaining free debt advice if you are unsure whether further borrowing or debt consolidation is right for you.
We process your personal information in accordance with our Privacy Policy. Where we introduce you to a lender or another intermediary, that organisation will process your information in accordance with its own privacy information.
Willows Finance Privacy Policy: willowsfinance.co.uk/privacy-cookie-policy/
The way Willows Finance is paid depends on the lender, product and application route. We may receive a fee paid by you, commission paid by a lender or another third party, or a combination of these. We will explain the basis on which we will be remunerated in connection with your application.
Where Willows Finance off an advised service our fees are split into two parts. A fee for the advice you receive and a fee for the processing of the application to completion. Both of these fees can be added to the loan rather than paid upfront or you have the option of paying them in advance. We do not arrange loans below £10,000.
For the advice the fee is as follows;
For a first charge mortgage, our advice fee is 5% of the amount borrowed, subject to a minimum fee of £625 and a maximum fee of £1,250.
For a second charge mortgage, our advice fee is 5% of the amount borrowed, subject to a minimum fee of £625 and a maximum fee of £1,750.
For a first charge mortgage, our processing fee is 5% of the amount borrowed, subject to a minimum fee of £625 and a maximum fee of £1,250.
For a second charge mortgage, our processing fee is 5% of the amount borrowed, subject to a minimum fee of £625 and a maximum fee of £1,750.
| Service | First charge | Second charge |
|---|---|---|
| Advice fee | 5%, min £625, max £1,250 | 5%, min £625, max £1,750 |
| Processing fee | 5%, min £625, max £1,250 | 5%, min £625, max £1,750 |
On borrowing of £10,000 5% would be £500, but the minimum fee for advice and processing means that we would charge £625 for each to £1250 in total.
On borrowing £20,000 the total fees would be £2,000
On borrowing £50,000 the maximum fee means that we would charge a total of £2500 for a 1st charge mortgage and £3500 for a 2nd charge mortgage.
If your mortgage or loan completes following an introduction made by Willows Finance, we will receive commission from the lender or another third party in the distribution chain unless we tell you otherwise. Different lenders may pay different amounts and may use different commission models.
Commission models may include:
The availability or amount of commission does not determine which lender we consider appropriate for your circumstances. Where applicable, we will tell you that commission will be received.
For an MCD regulated mortgage (a mortgage within the Mortgage Credit Directive rules), where the exact amount of commission is not known at the time of the initial disclosure, we will tell you that the actual amount will be disclosed later in the ESIS. Where applicable and on request, we will also provide information about how commission levels vary between lenders offering the mortgage being considered.
Where we introduce you to Evolution Money, the commercial arrangement is different from a broker fee charged directly by Willows Finance.
Under the current Evolution arrangement, Evolution Lending charges a Product Fee equal to 10% of the net loan advance, subject to a maximum of £5,000. If the mortgage completes, Evolution pays the corresponding amount to Willows Finance as commission/remuneration for the sourcing, distribution and introduction service.
The amount of the product fee and the amount of remuneration payable to Willows Finance will be disclosed to you in the relevant mortgage documentation before completion.
Example: on a £10,000 net advance, a 10% Product Fee would be £1,000. The actual Product Fee and the amount of commission payable to Willows Finance will be set out in the relevant Evolution mortgage documentation before completion.
If you choose to add a Product Fee or other fee to your mortgage, interest will be charged on that amount while it remains outstanding, increasing the total amount you repay.
Where a Willows Finance fee is payable only on completion, it will not become payable if the mortgage does not complete. Any fee payable before completion, third-party costs and the circumstances in which a fee is refundable or non-refundable will be explained where applicable.
Fees which have become payable following completion are generally non-refundable unless the relevant contractual terms, applicable law or regulatory redress require otherwise.
Before you become bound by a regulated mortgage, you will receive the relevant mortgage illustration or European Standardised Information Sheet (ESIS) and the lender’s offer documentation as applicable.
These documents contain important information about the proposed mortgage, which may include:
Please read these documents carefully. If anything is unclear or does not reflect your understanding, contact the firm responsible for the advice or recommendation before proceeding.
You may tell us that you no longer wish to proceed with an application before completion. Whether any third-party cost is payable or refundable will depend on its own terms.
For an MCD regulated mortgage (a mortgage within the Mortgage Credit Directive rules), the lender will provide a binding offer with a reflection period of at least seven days. You may normally accept the offer during that reflection period if you decide to proceed.
Once a mortgage has completed, there is generally no right simply to cancel or withdraw from the mortgage. You may have a right to repay the mortgage early in accordance with its terms, and an early repayment charge may apply.
Always check the early repayment section of the ESIS and mortgage offer before completion if early repayment or regular overpayments are important to you.
If you miss or make late payments, the lender may apply charges, and your credit record may be affected. Continued failure to maintain payments may result in enforcement action and ultimately repossession of the property used as security.
If you are experiencing financial difficulty, contact your lender as soon as possible and consider obtaining free independent debt advice.
Consolidating existing debts into a mortgage can reduce monthly payments but may increase the total amount of interest you pay if the borrowing is repaid over a longer period.
Debts which are currently unsecured may become secured against your home. Extending the repayment period may mean that you pay considerably more overall even where the monthly payment is lower.
Interest rates on variable-rate mortgages can increase, which may increase monthly repayments and the total amount repaid.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT.
If you are dissatisfied with any aspect of the service provided by Willows Finance, please contact us:
Willows Finance Limited
Brocastle, Bridgend, CF35 5AS
Telephone: 01656 766158
Email: [email protected]
We will investigate your complaint in accordance with our complaints procedure. If you remain dissatisfied with our final response, or in other circumstances where you are eligible to do so, you may be able to refer your complaint to the Financial Ombudsman Service.
Financial Ombudsman Service: www.financial-ombudsman.org.uk
Where another regulated intermediary has provided the mortgage advice or recommendation, complaints about that firm’s advice should normally also be raised with that firm. You can still complain to Willows Finance about the service provided by Willows Finance.
The Financial Ombudsman Service can generally consider complaints about regulated or otherwise covered activities, including certain activities that are ancillary to them. It may not be able to consider a complaint that relates solely to an unregulated product or service and has no connection with a regulated or otherwise covered activity. Whether a complaint falls within its jurisdiction will be determined by the Financial Ombudsman Service based on the individual circumstances.
Willows Finance Limited is covered by the Financial Services Compensation Scheme for eligible regulated activities. If an authorised firm is unable to meet an eligible claim, compensation may be available from the FSCS.
For protected home finance mediation, the current compensation limit is 100% of an eligible claim up to £85,000 per eligible claimant, per firm. Eligibility depends on the circumstances of the claim and the applicable FSCS rules.
FSCS protection does not generally apply to a claim arising solely from an unregulated product or service, including any packaging service that falls outside regulated home-finance mediation. Whether a claim is eligible will depend on its individual circumstances and the applicable FSCS rules.
Further information: www.fscs.org.uk
Once we have received sufficient information about your circumstances and requirements, we will carry out the relevant initial assessment and sourcing process and explain which application route applies to you.
Where Willows Finance provides the mortgage advice, we will continue through our advised mortgage process and explain any recommendations made.
Where your application is referred to another regulated intermediary, such as Evolution Money, we will explain that the receiving intermediary will take over the subsequent application and advisory process where applicable.
Please review all mortgage illustrations, ESIS documents, fee and commission disclosures, offer documents and other terms carefully before deciding whether to proceed. If anything is unclear, ask before committing to the mortgage.
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