Do maintenance and tax credits count as income?

Loobysaver

I need to get a £48k mortgage but earn very little (approx £5k)

Do lenders take maintenance and tax credits into account?

Thanks

toonfish

some lenders consider all or part of them, yes

Loobysaver

The mortgage was originally with Prudential which is now Egg banking I believe.

I'm just hoping they will let me take the mortgage over based on what I said before.

herbiesjp

How much do the tax credits and maintenance come to? Can you give a breakdown?

How long have you been in receipt of the maintenance? Is this supported by a court order?

Loobysaver

herbiesjp wrote: »

How much do the tax credits and maintenance come to? Can you give a breakdown?

How long have you been in receipt of the maintenance? Is this supported by a court order?

Maintenance is £500 per month but is a private arrangement only just started.

Tax credits is about £8000 per year (£636 every 4 weeks).

herbiesjp

Well you may have some limited options.

The mortgage needed is £48k - but what is the purchase price?

Do you have any other loans/ credit card balances etc outstanding?

Loobysaver

herbiesjp wrote: »

Well you may have some limited options.

The mortgage needed is £48k - but what is the purchase price?

Do you have any other loans/ credit card balances etc outstanding?

The house is worth about £150K. No loans outstanding.

Just in case I didn't explain myself properly, it is a joint mortgage at the moment but I need to take it over on my own if possible.

Thank you.

blossom36

My mortgage is with the Abbey (through a broker) and they took into account my maintainance, tax credits and child benefit. I most certainly would not have been able to get it otherwise as I am on a low income. Having said that, I had a deposit of 25% and it was 18months ago.....

herbiesjp

On the basis of the figures you have provided you could indeed have some optiosn available.

However, to make sure you get the best deal, and fit the criteria of the leners in questions relating to the way your income is made up, I would suggest speaking to a whole of market adviser and let them see if they can get the mortgage agreed for you in your sole name

Loobysaver

herbiesjp wrote: »

On the basis of the figures you have provided you could indeed have some optiosn available.

However, to make sure you get the best deal, and fit the criteria of the leners in questions relating to the way your income is made up, I would suggest speaking to a whole of market adviser and let them see if they can get the mortgage agreed for you in your sole name

Thanks for your help.

How would I go about finding a whole of market adviser and do they charge up front fees or commission?

BARGAINHUNTER!

Loobysaver wrote: »

The house is worth about £150K. No loans outstanding.

Just in case I didn't explain myself properly, it is a joint mortgage at the moment but I need to take it over on my own if possible.

Thank you.

So in effect you have a £102k deposit? The house is worth £150k but you only need £48k? I was in a similar position, with a similar amount to borrow, but my house was worth about £300k. Are you going to be buying your ex out? Only reason I ask is that I couldn't afford to hand over half the value of the house to my ex and add the £150k to my mortgage (they wouldn't lend it to me anyway!) so luckily my ex agreed to have a charge against the property. I have to give him a % share either when I co-habit, get married, move or my youngest son reaches 21. My lender wasn't very keen at first, but after a long battle I got them to my ex having charge against the property I was trying to mortgage.