Attendance Allowance as Proof on Income

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notsureaboutmuch2985
notsureaboutmuch2985 Posts: 2 Newbie
in Disability money matters
Hello everyone, my first post, looking for some guidance from anyone with experience of anything similar.

My wife is a full time carer for her Nan who is in receipt of Attendance Allowance, this attendance allowance is then paid to my wife by her Nan to deliver the care and additional support she needs as carers allowance is peanuts!

We recently applied for a mortgage to move to larger home, a mortgage we can afford but were declined for as the lender (and all other lenders our broker knows of) cannot accept the Attendance Allowance as income because it is awarded to my wife's Nan and not to her.

My question is, given that this is income we receive every month and will do for the entire duration of her Nan's care... how do we make it so that we can have the attendance allowance as proof of income?

All help welcome.

thank you

Comments

  • Alter_ego
    Alter_ego Posts: 3,842 Forumite
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    Invoice Nan for the care, then declare and pay tax etc on it as income. Probably need to set up a care business to do it though.
    I am not a cat (But my friend is)
  • notsureaboutmuch2985
    notsureaboutmuch2985 Posts: 2 Newbie
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    Yes, the AA is used to hire my wife I guess, good way of looking at it - and NO we 100% need to sort the tax declaration out - didn't even occur to us.

    If we invoice and run it like a mini-business would my wife basically be self-employed?
  • Nannytone
    Nannytone Posts: 501 Forumite
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    To be honest her Nan isn't going to live forever. If your wife provides 35 hours or more a week of care then she can claim Carer's Allowance which would be counted as income.
    I wouldn't want to get a mortgage for the long-term based on an income as someone that is old and ill
  • w06
    w06 Posts: 917 Forumite
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    You'd be better looking for a smaller mortgage, if an income of at most £4300 a year is tipping the balance then it sounds as though you've over stretched.

    Banks do accept benefits as income - I took a loan out to buy my van that was wholly covered by my PIP mobility payments, my income wouldn't have allowed me to take it out I don't think, but Natwest accepted a 10 year PIP award as my having means to make the repayments. But that's because it's an award in my name.
  • beanielou
    beanielou Posts: 90,441 Ambassador
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    I doubt any lender would accept income to someone else as income.
    Also, there is no guarentee how long it will continue.
    I am a Forum Ambassador and I support the Forum Team on Mortgage Free Wannabe & Local Money Saving Scotland & Disability Money Matters. If you need any help on those boards, do let me know.Please note that Ambassadors are not moderators. Any post you spot in breach of the Forum Rules should be reported via the report button , or by emailing forumteam@moneysavingexpert.com. All views are my own & not the official line of Money Saving Expert.

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  • Danday
    Danday Posts: 436 Forumite
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    Nannytone wrote: »
    To be honest her Nan isn't going to live forever. If your wife provides 35 hours or more a week of care then she can claim Carer's Allowance which would be counted as income.
    I wouldn't want to get a mortgage for the long-term based on an income as someone that is old and ill

    I personally wouldn't want to get a mortgage based on ANY benefit that is paid by the DWP. The way things are going there is no certainty in anything anymore benefit wise and that includes working tax/child tax credits.
  • Cariad71
    Cariad71 Posts: 251 Forumite
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    No bank will accept someone else's benefits as income. With respect, her Nan could die and then the income would cease.
    Starting balance £173,000 (Sept 2012) interest only so if we do nothing We will owe this at the end of the term😁😁
    Balance as of Sept 2014 £165,803
    Balance as of Feb 2015 £163,360
    Balance end of July 2015 £159,050
    Balance as of Jan 2017.... £138,033:j
  • teddysmum
    teddysmum Posts: 9,474 Forumite
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    Cariad71 wrote: »
    No bank will accept someone else's benefits as income. With respect, her Nan could die and then the income would cease.



    As the system is going through change, any benefit could be reduced, abolished or suspended, thus not providing a reliable source.
  • lisyloo
    lisyloo Posts: 29,624 Forumite
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    How long is the mortgage term?
    How long is the AA going to last? (Care home or death)

    Do you understand their concern?

    You say you can afford it, they are saying you can!!!8217;t guarantee that in future if you lose this income.
  • Danday
    Danday Posts: 436 Forumite
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    lisyloo wrote: »
    How long is the mortgage term?
    How long is the AA going to last? (Care home or death)

    Do you understand their concern?

    You say you can afford it, they are saying you can!!!8217;t guarantee that in future if you lose this income.

    Or as the case which now appears to becoming the norm - re-assessments at timely intervals for indefinite AA awards
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