Tax Credits and Mortgages

Vegeta

Do mortgage lenders include tax credits when calculating the amount they will lend you?

For example, if my salary is £20,000 and I get £2,000 in tax credits, will the mortgage lender base the calculation on £22,000 so if they lend at a 3x multiple they will lend me £66,000?

Thanks.

opinions4u

To be honest, you probably wouldnt need the tax credits to get 3.3 times £20k.

Some lenders do, some don't. Some accept certain tax credits but not other tax credits.

See a local whole of market broker first though.

gizmo111

Abbey take them into acccount not sure which others do.

dimbo61

Yorkshire Building Society do as well

Dan_1976

A lot do, but as opinions has said you may not have to worry?!

Batchy

I recon , the figures used by the OP are ficticious, and just an example of what he was trying to illustrate... but I think most of the replys are basically saying you will get more than a multiple of 3 its probably more like 4 times your income. But its also dictated by your ability to raise the necessary deposit. IMO its more like over 4 times...

VIGILANT22

Batchy wrote: »

I recon , the figures used by the OP are ficticious, and just an example of what he was trying to illustrate... but I think most of the replys are basically saying you will get more than a multiple of 3 its probably more like 4 times your income. But its also dictated by your ability to raise the necessary deposit. IMO its more like over 4 times...

Income Multiples are calculated on your income and outgoings....

Batchy

VIGILANT22 wrote: »

Income Multiples are calculated on your income and outgoings....

'Income' Multiples are based on INCOME

'Affordability' Multiples and based on INCOME LESS EXPENDITURE and can often be based on fiction and difficult to prove IMO

mitchaa

Risky move by the banks to accept benefit income in my opinion.

Child benefits are time limited, i.e they do not stay children indefinitely
Children may die
Government may change and cut benefits

VIGILANT22

Batchy wrote: »

'Income' Multiples are based on INCOME

'Affordability' Multiples and based on INCOME LESS EXPENDITURE and can often be based on fiction and difficult to prove IMO

Quote: can often be based on fiction and difficult to prove IMO[/QUOTE]

How do you arrive at this conclusion?

milliebear00001

mitchaa wrote: »

Risky move by the banks to accept benefit income in my opinion.

Child benefits are time limited, i.e they do not stay children indefinitely
Children may die
Government may change and cut benefits

I think this one is a bit odd (although I do accept you are right that many banks won't consider benefits as income). Benefits like child benefit etc seem reliable enough as income (much more so than tax credits) and disability benefits, for many people, are very reliable also. What isn't reliable necessarily, is employment. People get sick, get made redundant, have babies etc etc. It makes no sense to me that banks wouldn't accept a fairly 'safe' benefit like child benefit or disability benefit. They seem less risky in many way than a person's employment.