Any help greatly appreciated!!!!

silvercar

riapr wrote: »

who said anything about £20k on tax credits?

riapr wrote:

Although my income is at £25000 the majority of it is in tax credits.

OK not 20k but the majority of 25k.

dunstonh

Ok, so you are not a troll. Just a bit naive.

You state you have limited income and limited affordability. You havent mentioned what level of deposit you are going to put down. You havent mentioned what sort of rental yield you expect to get.

Have you also considered why you want to enter into a high risk investment when you have said that you have limited affordability? What happens when you have dead periods of no rent as the property is empty? What about the impact on tax credits (rent is taxable income)?

Property prices are falling and likely to continue for some time yet (we are only just into this house price crash. The last one took 4/5 years to bottom out). What makes you think that a mortgaged buy to let is a good investment?

riapr

Thx for your reply - but I would really like some advice on the question that I originally asked - which was if tax credits are classed as income when applying for a mortgage.

I do have almost 10 years experience of buying and selling property both in rising and falling markets, and I have also done alot of work site finding for several (large) companies and I was extremely successful. So I don't require any coaching on how to spot a good opportunity/investment thanks. What I do require is an answer to the question in my thread - can you help me with this being an IFA?

Zelie

riapr wrote: »

Thx for your reply - but I would really like some advice on the question that I originally asked - which was if tax credits are classed as income when applying for a mortgage.

I do have almost 10 years experience of buying and selling property both in rising and falling markets, and I have also done alot of work site finding for several (large) companies and I was extremely successful. So I don't require any coaching on how to spot a good opportunity/investment thanks. What I do require is an answer to the question in my thread - can you help me with this being an IFA?

TBH if you were that good you'd have found out already.

Seriously, don't go down this route. If you *must* gamble in property then buy a three-bed house and get a lodger. Income will be tax-free though obviously will affect your tax crexits. (You do realise that rental income from a BTL will reduce your tax credits don't you?).

shelene

Hi i believe that your tax credits can be classed as income as long as they are stable enough and are not liable to alot of change, this also goes for child benefit etc.

Im sure a quick call should clarify this for you!

Its a shame everyone thinks the worse firstly on this forum, dont let it put you off posting.

curs82

riapr wrote: »

Thx for your reply - but I would really like some advice on the question that I originally asked - which was if tax credits are classed as income when applying for a mortgage.

I do have almost 10 years experience of buying and selling property both in rising and falling markets, and I have also done alot of work site finding for several (large) companies and I was extremely successful. So I don't require any coaching on how to spot a good opportunity/investment thanks. What I do require is an answer to the question in my thread - can you help me with this being an IFA?

I would say after 10 years of buying and selling experience and knowing good investments/opportunities you shouldn't be in a position with limited affordability, should you?

Its no surprise people aren't forthcoming in helping out with the attitude you have.

ragingbass

I seem to remember when applying for a mortgage, there's usually a section for 'Other Income'. I guess you'd probably put the tax credits in there.

The thing that springs to mind though, wouldn't your mortgage need to be longer than your tax credit income? I think you'd only get the credits until your daughter is 18 and I'd assume your mortgage would be at least 25 years? I appreciate that you're plan is probably not to see out the full term, but obviously the banks will want to know their money is coming back.

Best thing to do is to book in for a session with an IFA.

SingleSue

riapr wrote: »

Dear Fatpig

Thx for your reply. to clarify my situation I am a single mother who is trying her very best to create an income (just to survive that is) for myself and my child. In order to do that I work every hour I possibly can whilst spending as little as possible on day care whilst I work - this is an extremely hard balance to make. This means I am slightly limited as to jobs I can take. I am as a trade product manager and am trying to fulfill that role but this is impossible as I do not have the time nor the money (childcare) to work full time hours. (also taking into account that I hate my child having to go to nursery everyday so I can go out to earn money). I deserve the tax credits payments I get, in order to enable me to work as much as possible. I have another option in my life which would be to claim income support, have a council house provided for me and turn to a life of drink and drugs - but I prefer not to do this as I would ultimately like to be self sufficient and not have to claim any support from the gvrnmnt. To get a BTL house is a way of maybe creating extra income so that in the long term I do not need any help from the gvrnmnt at all. I would like to think that I am one of the minority who does get off their !!!! to help themselves (and their children) and would really just like some advice in doing so. A BTL could possibly provide me with an investment for myself and my child for the future. Make sense????

Sorry just had to highlight one part of your post which has rather irked me. I am also a single parent but I also live in social housing. I do not take drugs, in fact I don't even drink, have no criminal record (and it is not because I don't get caught, it is because I am extremely law abiding).

I do claim income support but I am also doing what I can to improve my education (which was not poor to begin with) to bring myself upto the standards expected today (GCSE's instead of 'O' Levels, IT qualifications etc) and this is despite also having an almost full time job in caring for two of my children who are disabled. All of my children were born during my marriage when both myself and my (now ex) husband were working.

I don't get anywhere near 20k in tax credits, I am also looking for work despite being advised I shouldn't be because of my childrens care needs and once I do, that job would have to support four of us but that doesn't even come into my calculations on looking at salaries, I just want to work and not be claiming income support, so I apply for everything I can.

I can't believe there is now snobbery in the single parent on benefit class!

dunstonh

I do have almost 10 years experience of buying and selling property both in rising and falling markets, and I have also done alot of work site finding for several (large) companies and I was extremely successful. So I don't require any coaching on how to spot a good opportunity/investment thanks.

There hasnt been a falling market in the last 10 years except for now. If you have been doing this for that long then how come you are you still getting tax credits as capital gains tax would have hit those.

In the last 10 years its been a doddle to make money in property. It didnt matter what you bought, what the rental yield was, you made money. A monkey pointing to random properties in the paper would have made money.

Its a totally different scenario now. You want to enter into a high risk transaction but have given no information to suggest that you are in a financial position to do that. You dont appear to have the knowledge that 10 years of doing this would have either as you avoid answering questions in those areas and what you do say contains inaccuracies or conflicting information.

Best thing to do is to book in for a session with an IFA.

Probably is but a good IFA isnt going to be a "yes" man. They should question the pros and cons and ability to afford and understand. Problem is that the OP doesnt seem to want to listen.