what counts as income for mortgage purposes?

gemmiegoatlegs

my husband and i are considering a move to an area wher we don't have to pass the drug squad on the school run - the only thing is I am not currently working (uni student) so we would be applying for a mortgage on husband's salary alone. Can anyone tell me if any other income may be taken into account eg. tax credits or student funding?

We have good credit histories, no debt and 50% deposit

Thanks in advance

JoeK_3

gemmiegoatlegs wrote: »

my husband and i are considering a move to an area wher we don't have to pass the drug squad on the school run - the only thing is I am not currently working (uni student) so we would be applying for a mortgage on husband's salary alone. Can anyone tell me if any other income may be taken into account eg. tax credits or student funding?

We have good credit histories, no debt and 50% deposit

Thanks in advance

Some lenders will take tax credits into consideration.

JoeK

MortgageMamma

Sometimes student funding can be taken into accountbut not with every lender

same with tax credits, some take them some dont

if you get any child support payments that can be classed as income

husbands employed salary. overtime, bonuses and commission can be included plus any other earnings he may have such as rental income or a second job

Snow_Dog

And if you're very cheeky you could ask to take into account the fact that you occasionally see coins on the pavement.

Sorry if that sounds sarcastic but it just seems that this is partly to blame for the fact that house prices have been able to scale such dizzy heights. Mortgage lenders will take into account every single penny coming in from every source, unreliable ex-partners paying the child maintenance, fictional overtime worked the three months prior to the mortgage application, add in the extra few shifts down the local, multiply it all by a number till we reach a value that will buy a house.

Never mind interest rates, we are in a new paridgm (sic) where interest rates are never going up again, well OK maybe a bit but lets deny it all the way.

Next thing will be to take into account future possible theoretical earnings, then the skys the limit.

homer_j_3

we do that already - doctors and solicitors especially will get allowances for potential future earnings.

herbiesjp

It also depends on the figures in question.

IT could be the case that if your husbands income is just outside of normal lending multiples, due to the 50% deposit, a lender may be willing to be a bit more flexible and agree the mortgage just on the basis of his income alone

What is the purchase price?
What is his his income?

gemmiegoatlegs

the purchase price is 127K, we have 50 K deposit. My dh earns just over 15K per year

sarkin

this post is nearly a year old?

herbiesjp

Weird

BUt anyway - you may find just handful of lenders willing to agree this, but I would worry about over stretching yourselves.

gemmiegoatlegs

lol! post is rather ancient - i didn't check which post i was replying to! We have just sold and got the elusive mortgage though!