best lender to approach? working single parent, low income..big deposit!!

jjuggle

Hello,
I've relocated to the seaside, my old house has now sold so I have a deposit of 50k for a new pad.
I am a single parent with two children, one of whom is disabled. I have two part-time jobs and my income is quite small but I get a reasonable amount of tax credits - do you know which (if any) lenders will include tax credits as income?
Any advice welcome
Many thanks

casualwalks

Might be helpful to post a bit more about your situation. What exactly is your income. What is the value of the property you are looking to buy? Do you have any outstanding debts?

jjuggle

Ok, well, I am starting two new jobs in August, both part-time, approx combined income is 10k (paltry, I know!)
My income from tax credits is also around 10k.
No debts.
I have been looking at houses around 150k but obviously don't want to get too interested if I can't get a mortgage....

dimbo61

Dont know about a £100K mortgage on £10K income and £10K in benefits but my g/f ( now the wife) got a mortgage with YBS which took into account benefits.
That was a few years ago and the world of finance has changed Good Luck

casualwalks

Even with a 50K deposit, you'll need a mortgage of £100,000. If you found a lender that took into account your salary and tax credit that's 5x your income. I don't think there are many (if any lenders) lending at 5x your income.

somethingcorporate

Not when 50% of that income is benefits that are likely to get some level of reduction in the near future.

jjuggle

funny isn't it? when me and my ex split six years ago I ended up paying the mortgage, luckily it was a fixed rate at £500 per month, never missed a payment but on paper, I can't afford it...

superbabe612

Halifax and Nationwide both take tax credits into account when looking at your income, but I think the norm is 3x your income, ie £60k. If you've got £50k deposit, you're obviously going to need to reduce your budget to about £110k - but leave some money aside for solicitors fees, etc.
You may also have a problem in that you're only just starting your 2 jobs, so you may need to wait until you've got 6/12 months employment history.
Try asking an independent mortgage broker, your previous lender, or the bank where you hold your current account for advice.
Good luck!