TAX CREDITS count towards income for mortgage?

malkbk

I am currently looking for a mortgage for the first time in a long time.I have been speaking to a few lenders and am surprised at the great variations in what they will count towards income .First Direct will not count any tax credits.Abbey were happy to count them all(but the deal wasn't as good)and Hsbc would not count tax credits if your child is 12 or over.
Short of phoning everyone to ask the question, does anyone have any information of lenders willing to count tax credits as income for a mortgage?
I am looking to borrow only about 20% of the property value.
many thanks in advance.

herbiesjp

Or one phone call to a good whole of market adviser

Without knowing the actual figures difficult to say - knowing what the actual 20% is, is important along with your income details

dunstonh

In my opinion they shouldnt include any tax credits. Tax credits are not guaranteed and will run at some point and if that point is during the term of the mortgage then how do you pay for the mortgage if you are reliant on them?

So, the lenders not included should be applauded for common sense. That said, if you dont care about that risk then there are plenty that will include some or all of them. You need a whole of market or independent mortgage broker.

woozywendy

We have just remortgaged with Natwest at a rate of 3.99 and set up fee of £99 (existing customer), when they asked about income they included the tax credits and child benefit. We are in the position that they would have lent us the money anyway on wages alone as we only wanted to borrow 30% of the house value. I think with the Natwest you have to borrow a minimum of £25000.

emmalita

Natwest accept working/child tax credit and child benefit,hope that helps.

malkbk

Thankyou to everyone who replied.I will certainly check Nat west. I only need the mortgage for a couple of years which is why I am happy to let them count the tax credits.In fact at the moment I need them to .I am borrowing less than 20% of the value of the house.

thriftymomma

Let us know how you get on. With that sort of LTV they should be falling over themselves to offer you the cash. Good luck.