Mortgage & tax credits

ride_to_die

I know its a crystal ball type question but i'd appreciate your opinions.

I earn 16300pa, my wife earns 11500pa. We have 2 kids 1 is in nursery the other is looked after by my mum. In 4 years we have saved approx 37k using all the advice this site gives. We have 5k saved for solicitors etc and we have furniture and some appliances from when we rented our own place. We have no debts apart from my student loan which is being paid off at £9 a month. The only regular outgoings we have are mobile phones £25 and £785 childcare per month. We live with my parents and contribute towards bills, food etc and save everything else. We have good credit reports from all 3 major agencies but my wife has 2 late payments on her Next account from last year. She had a car loan which we paid off early.

The childcare is paid with Tax credit money.

All the mortgage calculators seem to offer low amounts ie approx. 40k on account of the childcare costs.

We are looking at getting an 80k mortgage.

Is this possible?

Thanks

Sam.

ride_to_die

Any opinions?

Thanks,

Sam.

GMS

Not all lenders will allow tax credits to be used as income. Your childcare will be taken as a commitment by almost all lenders and will have a massive impact on what you can borrow.

Have a chat with a broker.

Joe_Bloggs

What about social housing ? Local councils and Housing associations in and around your area ?
J_B.

ride_to_die

Thanks for the replies. Social housing in Leicester is dire. The waiting list is really long, i've been on the list 4 years and have been told it'll be another 7 years before i have a chance of a 2 bed house. I'll speak to L&C and see what they say. We can comfortably afford the mortgage we need but obviously £785 child care a month even though its covered by the tax credits is a large commitment.

Sam.

handytips

Try Halifax, they will take tax credits into account along with your wages, seems like to me you need the services of a decent broker

tipsymcstagger

Yorkshire bank took my tax credits, dla, carers allowance into account today when I went to remortgage with them and also to get my new partner on mortgage and ex taken off. We were accepted subject to valuation. HTH

lil'H

Santander take tax credits. I dealt with London and County for my mortgage and they knew straight away which ones took tax credits and which didn't

tipsymcstagger

Santander only take working tax credits they dont accept child tax credits element HTH

TMSL

Am i reading this right, that you get £785 per month in tax credits when you earn a joint salary of approx £28000.??

ride_to_die

Thanks for all the replies.
We've spoken to a local broker who thinks we'll have no problem getting the mortgage we need.
Re TMSL- We don't get £785 tax credits a month, we get considerably less.

Thanks,

Sam.