First time buyer, how much can we get if any

fullmoon_2

We have been saving up for our first home. Need some advice.

Current circumstances, couple mid 30's with 2 children. Employed, 40 hours/week. Contract type temporary 3 months but auto renewable, already had twice. Salary before tax £21750/year. OH not working and no plan back to work. No rent as living with parents. No loan, no credit card payment. Savings 30K. Target 50K

Benefit: Tax credit £6000/year
Child benefit £1750/year
CA £3000/year

Salary (take home) + benefit £28170

Will we get a mortgage? Worried as a temporary status.

If we get how much? Does benefit count as income?

Thanks.

ACG

You might be able to get around the £100k mark - maybe slightly more, maybe slightly less.

It depends on your job i suppose, if its been renewed twice - youve done over 6 months then you might not have too many problems, although ive never done a mortgage for a contractor.

fullmoon_2

ACG wrote: »

You might be able to get around the £100k mark - maybe slightly more, maybe slightly less.

It depends on your job i suppose, if its been renewed twice - youve done over 6 months then you might not have too many problems, although ive never done a mortgage for a contractor.

Thanks a lot for quick response.

Mara69

Very dangerous to base your future income on benefits. They can (and are) being revoked.

leveller2911

Mara69 wrote: »

Very dangerous to base your future income on benefits. They can (and are) being revoked.

You would think that in times of tightening of lending criteria that the Banks would stop accepting them as income....

Does make you wonder who regulates the Banks, common sense dictates you shouldn't accept benefits as income purely for the reason you gave. That said Government are trying anything to stop the Housing Market fall, everything incl the kitchen sink.

Getting nearly £8k a year from benefits on an income of nearly £22k a year?, is that a typo?

Dave_Ham

With the many unfortunate people losing their jobs, you would expect the banks to stop allowing people to use as income as income!

leveller2911

Dave_Ham wrote: »

With the many unfortunate people losing their jobs, you would expect the banks to stop allowing people to use as income as income!

So your in favour of Benefits being classed as income?..;)

Pop over onto the benefits threads and do a search on "Tax credits overpayments".... Anything to prop up the market it seems

As an example the OP for instance £22k income Tax credits £6k now if they were self employed and the following year their income rose to say £26k (not beyond the realms with self employed,good years and bad years) they would then have to pay nearly all of the Tax credits back due to an overpayment.

didabuf

fullmoon, i cant tell you where you stand with regards to your job but as for benefits, we just got accepted for a 75% mortgage with nationwide and 75% of our income is based on benefits, however some of that is benefits for life as partner registered disabled.
some of it is child benenfit/taxcredits etc so it can be done

check out nationwide website, the online caclulator is exactly the same as the one they use in branch.

Dave_Ham

And there are numerous threads regarding people losing their jobs and the implications...

My point was simply that if the banks are happy with accepting benefits and people can validate they have the appropriate benefit levels, then why should they not be included?

Surely no less stable than income..

Anyway I digress..

fullmoon_2

leveller2911 wrote: »

Getting nearly £8k a year from benefits on an income of nearly £22k a year?, is that a typo?

It's not.

working tax credit + child tax credit (2 children) + disabled child element = £115/week

Child benefit £33.70/week

Carer's allowance £58.45/week

Thrugelmir

fullmoon wrote: »

Contract type temporary 3 months but auto renewable, already had twice.

What does auto renewable mean?

Certainly should not be inferred as permanent in any way. In essence you could be out of a job very quickly.