Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what recent assessment she has made of the difficulties faced by universal credit claimants applying for a mortgage; and if she will make a statement.

The Financial Conduct Authority Handbook sets out rules and guidance for lenders. This provides that, prior to entering into a mortgage, a lender must assess whether the customer will be able to pay the sums due and must not enter into the transaction unless it can demonstrate that the mortgage is affordable for the customer (and any guarantor).

It is up to individual lenders to determine how to ensure adherence to this requirement. Each lender is required to publish a written statement setting out the factors it will take into account in assessing a customer's ability to pay. This must, inter alia, address how income and expenditure is to be assessed, including details of the types of income which are acceptable.