Do lenders take tax cedits into consideration?

Singlemummy_2

I'm a working single mum and currently renting a property at £450pcm. I really want some outdoor space for my 18 month old son and would like to get on the property ladder.

I work part time and earn £9928 p/yr before tax and receive around £6000 p/y in tax credits. I also receive maintenance payments.

The house I have seen is up for £67500 and I am confident that I could afford repayments on a mortgage (I can afford £450 comfortably on my rent now and I could afford more but don't really want to pay more).

Do mortgage lenders take tax credits into consideration when assessing mortgage claims. Also, are there any 95% mortgage deals on the market? Or would I be looking at 90%?

Thanks

waynehayes

Certain lenders will take tax credits into account. I know Abbey definitely do.

dimbo61

Yorkshire building society also take into account Working tax credits but you need to save up at least 10% DEPOSIT

rinkydinkpanther

I'm sorry, but you cannot afford to buy that house.

If you put your income into the Abbey mortgage calculator and have no other debt commitments, the maximum they will lend you is £46,540. This means you would have to find nearly £21k for the deposit/balance, plus money for fees and expenses associated with buying.

the_other_mce

rinkydinkpanther wrote: »

I'm sorry, but you cannot afford to buy that house.

If you put your income into the Abbey mortgage calculator and have no other debt commitments, the maximum they will lend you is £46,540. This means you would have to find nearly £21k for the deposit/balance, plus money for fees and expenses associated with buying.

If that is the case you should contact your local council to see if they have any shared ownership schemes to help you buy a property.

emmalita

hi halifax natwest and rbs do

Singlemummy_2

Hi,

The question of what I am able to borrow is irrelevant as I have a deposit and if I still fall short, will be able to get a parent to act as guarantor/purchase with me if that is the only option left.

I was just wondering if tax credits are taken into consideration, and it looks as though some lenders at least do.

Thanks for replies

surfsister

Singlemummy wrote: »

Hi,

The question of what I am able to borrow is irrelevant as I have a deposit and if I still fall short, will be able to get a parent to act as guarantor/purchase with me if that is the only option left.

I was just wondering if tax credits are taken into consideration, and it looks as though some lenders at least do.

Thanks for replies

try riniong them. Nationwide`was very god to a relative when their husband left them and dicorce etc She was on low income and working and child tax`credts but Nationwide `was hapy for her to take over the mortgage.

Ring around you don't need to give details just get a feel for things. Good luck.

Helpmaboab_2

Singlemummy wrote: »

Hi,

The question of what I am able to borrow is irrelevant as I have a deposit and if I still fall short, will be able to get a parent to act as guarantor/purchase with me if that is the only option left.

I was just wondering if tax credits are taken into consideration, and it looks as though some lenders at least do.

Thanks for replies

Hi,

When we applied for a mortgage last year most folk said that we wouldnt be able to get one. We did. Not everyone knows the products that are out there, they change dailly.

However in asnwer to your question, my partner and I were receieving tax credits and family tax credit when we applied for our mortgage and it was taken into consideration by our mortgage provider. I think it all depends on the provider.

We were lucky and had a good financial advisor, if you can get one ad recoomend going seeing one.

Good Luck

Singlemummy_2

Thanks for your replies, I'll do some researching now...