Help Can I get a mortgage on Family Tax Credit

I have a reasonable deposit and have approached my current lender to give me a mortgage on a new property, but as my circumstances have changed and I am now on Family Tax Credit and only work 16 hours a week they are unwilling to allow me to port part of my current mortgage for the purchase of my new house.

Does anyone have any ideas? ???
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Replies

  • Pinky9

    As I have mentioned on previous posts. I'm afraid answers cannot be too specific from professional who answer on this forum. However, I have known lenders to take certain benefits into account before.

    One was an income derived entirely from benefits and thelender was happy to consider it all on usual Income Multiples.

    However, these benefits tend to be long term, non-means tested. Long term Incapacity allowance, Maintenance through a Court Order, etc.

    Family Tax Credit is one that I don't think lenders would be willing to take into account, because I think it is variable and not guaranteed.

    If you have details of how all of your income is derived and you send a pm to me, I could look at what could be considered.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Fairdo

    Thanks for your prompt reply.

    Sorry, v new to this what's "pm" and how do I do it???

    Pinky9
  • dunstonhdunstonh Forumite
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    Answers can be given on a generic nature or discussion form. However, specific advice cannot be given.

    Suggestions on what to investigate, with examples of providers who do that sort of thing wouldnt be classed as a breach of the rules.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Current income:

    Working Tax Credit/
    Child Tax Credit £721 every 4 weeks
    Maintenance £800 per month
    Child benefit £154 every 4 weeks
    Income (childminding) £300 per month

    I have at least £140,000 deposit and need to buy a property for £240,000 to £250,000 to stay close to where I am living at the moment, which is where I need to be.

    Any help would be greatly appreciated.

    Thanks
  • Pinky9

    Sorry for the delay. Logged out because I had to do the day job!!!

    A PM is the Instant Message that it is shown by the envelope icon woth the paper behind it, under the senders name and logo. The envelope on its own is email and some people also have an icon which shows a link to their website address.

    I have sent you a quick pm to show you how it works (as I only learnt recently how to do it myself! Next task is to learn how to put previous senders quotes onto the system.)

    The pms sent show each time you have logged in, that you have "x" amount of messages.

    Please feel free to send email or pm or carry on with this discussion thread.

    I will have a look at how the income is derived and I would also need to know if you have any regular commitments (loans, credit cards, maintenance payments out, etc)
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Hi Fairdo

    No I will have no other comittments once I move other than the regular bills (gas, elec, council tax etc)

    Don't think I'm up to trying pm's yet - may try later!!

    Thanks for your interest :D

    Pinky9
  • Well I think you are in a fairly promising position. Obviously, as long as the Mortgage Repayments will be responsible, there may be lenders out there thatwill ask you to sum up your total income and fast track the process. As you have such a good deposit available, Lenders will be a bit more forgiving about how the income is derived.

    I have had some hyphathetical chats with a few Lenders and they would appear to be quite positive about what could be done.

    The important caveats are that, we would need to satisfy ourselves that the income is there and will be for the foreseeable future, along with the fact that you would need to evidence a good/reasonable credit score to go further.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • I have never defaulted on the mortgage or any other loan/credit.  On many occasions I have settled credit agreements early, and tend only to use "interest free" options anyway.

    I have never been in this position before, I used to have a well paid job before having my youngest child and trained as a childminder in order to stay at home with him.  So I am a little unsure who to approach and what the best course of action is!

    I have also only been self-employed for 6 months so many lenders won't consider me because I don't have 3 years books, even though this is not by any means the bulk of my income!
  • Hi, :)

    I'm new to this & have a very similar question & wonder if anyone can advise what my options (if any)are as I have been basically told I have none!?! ???

    To cut a long story short, I got a mortgage, with my husband before we were married based entirley on my salary as he worked abroad at the time.

    All was fine until I had the kids & have recently decied to stay at home to look after them.

    As he is self employed & hasn't three years books yet, we have been told that we can't move to a larger house because I'm not working etc.

    I'm finding this hard to swallow as we have never missed a payment even though I have been on tax credits for 6 months and have approx 85K deposit

    Any ideas or suggestions please, as I really need some more room?

    Thanks
  • You have not put any income figures or house purchase figures, so it is difficult to say whether or not there would be anything suitable.

    As your husband is self employed he may be able to go for a self certified mortgage, or a normal status mortgage where the lender will not want two years accounts - you can get away with one year and a projection with some lenders.

    Affordability has to be an issue here, and would need close scrutiny of your circumstances before commiting to anything.


    Sorry can't be more specific here on the board.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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