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On Maternity - Looking to Move...any advice?

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Hello There!

I hope someone out there can help me - I have read lots of messages and I'm sure someone can!

I'm currently on marernity leave. Not due back to work until November 07. Maternity pay finishes in 8 weeks. I do not intend to go back to work if I can help it, as after childcare it won't be worth my while.

My partner earns £8500 pa working 30 hours a week on min wage (rubbish! - thats "More Reasons" for you!).

My current mortgage with Yorkshire BS is £35K (paying £250 ish a month). House value approx £85k perhaps a bit more.

I have inheritance of £50k coming from the sale of Mum & Dad's house - without this I would not be able to move - (Mum -God Rest Her Soul- died of natural causes - incase I should a bit dodgy lol).

Hence I have approx £100k as deposit. Looking for a house approx £120-£140k. Therefore it likely I will need a mortgage of £30k - depending on price of house.

Currently the mortgage is only in my name but I guess we will have to apply together to be considered for a remortgage as I am now a "housewife" type lady/girl.

Now then - here are my questions...

1. Will a lender take Tax Credits into consideration as income as will should be entitled to the full amount?
2. I am still employed at £14k pa - will this be used by the lender as income even though I am not actually earning this and don't intend to return?
3. My partner has a small CCJ was £300 now about £150 - will this go against him - should we just pay it all off - will this help?
4. Is self certifiying an option and if yes will the overall mortgage cost more?

Any advice gratefully received!

Thanks so much in advance

JOJO
:easter:
You're my wife now Dave.......

Comments

  • millsy1980
    millsy1980 Posts: 50 Forumite
    Part of the Furniture Combo Breaker
    Hi JoJo

    In answer to your questions as follows:

    1. Some lenders will take 100% of tax credits into consideration, some smaller percentages and others none at all.
    2. The lender should only use your income if you INTEND to return to work and they may ask you to put this in writing yourself giving the date you intend to return to work. They should also ask you employer to put something in witing to confirm this as well.
    3. CCJ's will go against you, although for that amount it will not be much. A satisfied CCJ always looks better than an outstanding one as you are setting out a good indication of your intentions to the lender. It also depends on the reason for it occuring in the first place.
    4. You could self certify your income using the benefits you receive, but self cert comes at a price and lenders normally cover their risk by charging more on the interest rate.

    Hope this helps, and happy easter to you to.
  • MortgageMamma
    MortgageMamma Posts: 6,686 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Hi JoJo

    Unless you intend to return to work then you cannot declare your income to the lender. However, some lenders will take tax credits into consideration. You can work out what you could potentially get in tax credits by doing a simple calculation from the following link http://www.taxcredits.inlandrevenue.gov.uk/Qualify/DIQHousehold.aspx
    If there's only your partner earning and he's on NMW, then your WFTC should be a decent amount, plus you will have your child benefit, so a 40k mortgage should be affordable, but be careful about your council tax banding, as they are about to be regraded and your council tax could go up (do you live in pendle by any chance?) The lenders who accept tax credit are Alliance & Leicester and Accord, and a few others. As your Bf has an unsatisfied CCJ I would advise you talk to a professional mortgage adviser before proceeding, as if a lender declines you, and you keep being credit scored, it will damage your credit rating.

    MM
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • JoJoArmani
    JoJoArmani Posts: 321 Forumite
    Thanks guys for your advice!

    I live in Preston and I hope to be going up by 1 council tax band - but guess I'll find out when we start looking.

    Having read some other peoples posts on here I feel really lucky to be able to afford such a huge deposit and small mortgage. I happened to buy at the right time.

    What is the current thinking on how much lenders will let you borrow? Is it still the 3.5 times salary? This might be usefull to know if I do have to work part time.

    Thanks again!! :beer:

    JoJo
    You're my wife now Dave.......
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