Income used on getting a mortgage?

rebs2010

Hello, can you tell me what income is used on getting a mortgage please? Is tax credits taken into account I don't earn a lot but would like to buy for the first time, I do have at least 10k deposit. I have been told an independent mortgage advisor can lend more money than going to a high street bank is this right? Any help would be appreciated thank you.

ACG

It depends on the tax credits - some will allow more than others.

Using an advisor wont mean the banks lend you more money, it just means that an advisor can search for the lenders that have the more lenient affordability options for your circumstances.

rebs2010

Could you give me more information on what you mean by depends on tax credits please? I would like to try and calculate how much I could borrow as it stands I could afford a garage and that's about it

ACG

Its a bit difficult, but lenders have different views on what tax credits they will accept.

If your in receipt of child tax credits for instance, they are generally acceptable unless the kids are around 14 years old (sometimes younger). After that, lenders dont really want to accept them.

Some lenders wont accept Disability living allowance.

If you speak to a broker, they will be able to help find a lender that will make the most of your circumstances.

mummyroysof3

I can only advice that some of our income is tax credits and it doesn't seem to be a problem with natwest.

_Andy_

rebs2010 wrote: »

Could you give me more information on what you mean by depends on tax credits please? I would like to try and calculate how much I could borrow as it stands I could afford a garage and that's about it

What is your income and what is the amount of tax credits?

ilnf

Completed an online application for HSBC and added Child Benefit as an income as there was a column for it. When I got the callback I was told the CB wouldn't be considered as part of our income as the duration of the mortgage was longer than the years I would get the benefit...

The mortgage term is 25 years (the fix I've applied for is just 2 years) and our child is 3 so we will be in receipt of it for at least 13 years, probably more likely 16 years (assuming current rules don't change).

Thought that logic was a little strange but was still thankfully considered 'affordable'. I don't know about tax credits though.

rebs2010

Thanks for your help I shall book to see an advisor