2 bits of mortgage advice any help gratefully received

petebrit

1. My rough circumstances good credit history, annual income basic 18500 with roughly 3 to 5000 in overtime.Been in employment 8mths before that househusband. wife now at home with kids who was self employed but wound her business up with only low profits in final year.

Plus tax credits of 9000 for this year which is due to low income last year so this will drop next year. 220 in child benefit per month. Have 45000 deposit for a 145000 house so looking to borrow 100000. broker guided me to Nationwide but they are moving slow asking lots of questions. All income can be proved.

Should i be worried how slow its going is it too much to borrow? Any providers assist with Tax credits etc as income? need to complete in 7 wks as seller will pull out otherwise so need quick decision offer.

If Nationwide say no. If they did why would you think this would be??

is SELF CERTIFICATION avaible as an option for employed people. As applications dont seem to take into account ougoings. We dont drink or smoke dont spend much
If anyone has any suggestions much appriciated!:beer:

_Andy_

There isn't a need for you to self-cert as the sources of income you have are provable.

Self-cert mortgages still require you to disclose your outgoings.

petebrit wrote: »

is SELF CERTIFICATION avaible as an option for employed people. As applications dont seem to take into account ougoings.

jockettuk

as far as im aware all morgage lenders are slow at the moment

petebrit

What i was thinking with Self cert is if i didn't get the Nationwide deal for any reason. Would that be an avenue to explore or am i better off trying someone else or giving up? I need that 100k really otherwise as we have sold our property it means renting , not ideal with 4 kids..

If you lose out on one mortgage will others consider your circumstances or are your chances no good.? according to broker i passed their credit score they just want to see all proofs of income before decision made. So a bit worried tax credits might not help as much as i hoped. as wages alone not enough for that amount i don't think. We have to be out in 8 wks max so need to get cracking !!!

Cheers Andy on info

_Andy_

Were the different sources of income disclosed on the application? AFAIK Nationwide don't accept tax credits as an income source.

petebrit

YES Tax credits etc seperate. Ideally i need someone who takes into account tax credits?

My last 3 wage slips paid 4 weekly have been an average of £1840 gross payment so dont know if they take that into account.

the payments for the mortgage were about £640 a month so we know we can afford it easily .Its just whether Nationwide agree!!

petebrit

So to summarize if the nationwide say no. Is it pointless trying again for £100k or is it worth trying another lender? I could put an extra £15k deposit in but i wanted to pay off 2 loans i had as well. I thought its better to pay off loans and have no loans than not?

Any ideas on which lender takes into account tax credits.

I thought asking for less than 70% of house price plus tax credits etc would be ample.?

I need a lender who takes a more non standard view ?

Times running down so if no go we will rent perhaps till april next year then my p60 will show £23-25k so should get a £100k on that but will lose this house we want?

sorry for rambling but the wife is complaining she will miss her dream house!!!

Help if you can!!!!

Locoblade

Generally its best to pay off other debts if you can Id think, although a lot depends on the interest rate of that loan. It sounds like the mortgage loan amount is the sticking point for you though, so if £15k less capital is the difference between you getting a mortgage or not, and you're comfortable with the loan repayments on top of the mortgage, then using that money to get a lower mortgage has got to be worth considering.

Leon_W

As someone mentioned Nationwide do not take WFTC as income but there are plenty of lenders that do.

On the face of it I would have thought that you should be able to obtain a mortgage but I would have to admit that you would be pushing the boundaries of affordability as the 4 kids will reduce it considerably. Could you not sell a couple to the workhouse ?

Regards

petebrit

I didn't realize that the children would be as much as a drawback as the child benefit tax credits i thought would offset that? If not then definitly will get them off to the far east to make some trainers!!!

Any recommendations to which lenders look favourably to tax credits. My current mortgage is with the Coop and they have been good so far but it was slightly higher interest with them at the moment. Might try them if Nationwide falls through. If no other suggestions?

Thanks

_Andy_

Have you spoken to your broker about this? (i.e. alternative lenders)