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Woolwich will count tax credit as income
Jaycee1972
Posts: 144 Forumite
Just thought I would post as this may help someone. I have just applied for a mortgage with the Woolwich who will take the 2 parts of working tax credit as income (not the child tax credit). This has meant that my income is enough to borrow the £65K I need to buy a house with my mum. I work part time.
My mum is 75 and when I went to see the Nationwide they said she could be on the mortgage and her income could be counted. However this week they said the policy changed about 6 weeks ago and 75 was the max age (ie to take out a 25 year mortgage she would have to be no more than 50). They don't count any tax credits.
Anyway, after a stressfull couple of days I seem to have it sorted! My broker rang the Woolwich to double check while I was their and did the credit check and he assures me all is fine. I am only borrowing 26% of the property price so we are not much of a risk really - my mortgage payments will be less than my rent.
As mum is no longer going to be on the mortgage (which I will be paying anyway), we will do a Declaration of Trust showing that she owns 55% to my 45% or however it works out.
Keep your fingers crossed for me this all comes together. We are looking at completion before Christmas and are in a relatively short chain of 4 (including mums bungalow, my house was sold 2 years ago and we are combining our equity). The house has a separate annexe for my mum which will be perfect
My mum is 75 and when I went to see the Nationwide they said she could be on the mortgage and her income could be counted. However this week they said the policy changed about 6 weeks ago and 75 was the max age (ie to take out a 25 year mortgage she would have to be no more than 50). They don't count any tax credits.
Anyway, after a stressfull couple of days I seem to have it sorted! My broker rang the Woolwich to double check while I was their and did the credit check and he assures me all is fine. I am only borrowing 26% of the property price so we are not much of a risk really - my mortgage payments will be less than my rent.
As mum is no longer going to be on the mortgage (which I will be paying anyway), we will do a Declaration of Trust showing that she owns 55% to my 45% or however it works out.
Keep your fingers crossed for me this all comes together. We are looking at completion before Christmas and are in a relatively short chain of 4 (including mums bungalow, my house was sold 2 years ago and we are combining our equity). The house has a separate annexe for my mum which will be perfect
Jaycee x
0
Comments
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Just as a pointer - most lenders will take WTC & CTC in to account when assessing affordability (Nationwide & RBS being the main ones that don't, off the top of my head)0
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