Please Help! Mortgage Lenders that take Tax Credits into account as income

babyfaxmachine

Hi there, Im a newbee! Have just been turned down by First Direct (who are my existing mortgage lender) for additional funds for a loft conversion. We have enough money coming in to pay back the additional 48k required, but FD won't take our £800 per month tax credits into account when looking at our incomings. I understand that we are in uncertain times and tax credits are not guarenteed, but we are not near the proposed salary thresholds that the government are proposing over the next few years so they are not under threat.

Does anyone know of any Mortgage Lenders that DO take tax credits into account?

We are desperate - can't afford to move, and the tripping over each other in our little house - more space is a MUST.

thanks in advance for any help x

shortchanged_2

Have FD specifically given you the tax credits issue as the reason for turning down your application?

Without being too nosey you are getting a very large amount of tax credits which either means you are on a very low income, have lots of children or have dependents with a disability. I would have thought the first two reasons would seriously affect their affordability criteria.

dunstonh

FD won't take our £800 per month tax credits into account when looking at our incomings.

Cant blame them really as benefits are volatile and someone getting £9600 tax credits is at risk of having them reduced as benefits are reduced.

FD are a fussy lender and cherry pick their business. There probably are lenders that will still take tax credits into account but you will have to wait for a mortgage adviser to answer that one.

catieeb06

There are a few lenders who will take into consideration CTC.

Are you also needing to use Child Benefit and Working Tax Credit?

babyfaxmachine

Yes to Child Benefit, no to Working Tax credit

ACG

Try halifax - without double checking im not 100% but im sure they do.

superbabe612

Halifax took my tax credits into consideration when offering me an AIP so I'd try them - or ask a mortgage broker who covers 'whole of market' - I used London & Country.

kingstreet

Halifax take tax credits and child benefit into account.

However you MUST have every page of your award letters, including the blank ones which are numbered.

I'll never make THAT mistake again.

simonpoole

Nationwide will take tax credits and child benefit into account and they use 100% of both of them. Just need the letter confirming entitlement for tax credits.

The Mortgage Works will also use both at 100% so long as they arent your only income there needs to be an earned income aswell.

Hope this helps

whysitallsocomplicated

RBS take both into account as well

izools

+1 for Nationwide; my mother was given a DIP quoting her (small) salary + state pensoion, Disability Livig Allowance, and Working Tax Credits.

They advised that they will accept all of the benefits as income but myltiply the benefits by a lower amount than the salary when calculating maximum lend / affordability.

They were also very good not to ask for proof of retirement income despite the fact she is retiring 5~9 years into the 14 year mortgage term.