DLA as income

MrRL

Hi
My wife and I are currently looking at moving home to be closer to our son's new school. As our son is disabled we get DLA for him. I was wondering if anyone knew which lenders will accept this and/or CTC as income as it will affect which properties we can look at.
Thanks in advance

kingstreet

Various lenders take various state benefits into account in some form. Some take 100% of some benefits, 60% of others.

It varies. I suggest you carry out some research, or find a broker to help you. Your deposit, other income and credit history will also be a factor.

MrRL

kingstreet wrote: »

Various lenders take various state benefits into account in some form. Some take 100% of some benefits, 60% of others.

I have heard that some will not take the DLA as it is not for myself or my wife, and wondered if anyone knew which lenders would.

How would I research lending criteria, do lenders have this available or is that where I would need a broker?

zzzLazyDaisy

Not the question you are asking (but related). If your son's disability means that he needs particular adaptations - eg a downstairs bathroom - which limits your choice of housing, you may be able to get a Disabled Facilities Grant to carry out the necessary alterations if you buy a cheaper property that does not have the adaptations. DFG is means tested, but for children it normally goes on their own income not their parents' income. You need to check your local authority website for details, but it is something to bear in mind.

kingstreet

Some lenders publish their criteria online, so you can see what they will and won't accept. Others don't.

Look at the direct-to-lender deals for yourself and talk to a broker about the other possibilities.

You have a point about the DLA. As it isn't actually "yours" it wouldn't be acceptable if an award letter is used to evidence it. However, if the lender is prepared to accept it as it appears as a credit on three months bank statements, that may be a different matter.

ACG

The DLA is not your income, i dont think any lender will accept this.
If the DLA was your income, i know Woolwich would accept it for example - im not suggesting you go with Woolwich, but it might be a starting point to see if they will accept it. If not, then it might be worth speaking to a broker that specialises in tricky circumstances... presuming you need the DLA to meet affordability.

MrRL

ACG wrote: »

presuming you need the DLA to meet affordability.

No, not quite. We both have income, I work F/T, OH works P/T, the area we are looking to buy in is slightly more expensive than where we live currently so if the DLA was taken into account, it just widens the search. Essentially, it would be a 'nice to have' rather than a 'be all and end all'

ACG

OK, maybe speak to a broker? If your incomes could support it anyway, it might be a case of just looking for a lender that will offer you the most possible rather than potentially needing to use your sons DLA?

MrRL

Thanks for your input ACG

Incomes support a mortgage, equity in existing property for deposit, I was seeing if any lenders were that way inclined to give us that little bit extra. I will work on the basis of 'no'.

kingstreet

If you want to provide the information listed, one of us will run it through a lender's affordability calculator for you to see what the maximum borrowing would be. We know how much of the Tax Credits could be accepted and how the inclusion of the DLA would alter things.

App 1 - Gross annual income £ (break down into basic + variables)

App 2 - Gross annual income £ (break down into basic + variables)

Annual value of child tax credits and child benefit £

Annual value of working tax credits £

Annual value of DLA payments £

Monthly cost of loans/HP £ and time left to run (Months)

Credit card balances £

Any other expenses, such as maintenance, childcare £

Ages Y & Y

MrRL

Thanks Kingstreet

kingstreet wrote: »

If you want to provide the information listed, one of us will run it through a lender's affordability calculator for you to see what the maximum borrowing would be. We know how much of the Tax Credits could be accepted and how the inclusion of the DLA would alter things.

App 1 - Gross annual income £ (break down into basic + variables)

£16900 basic

App 2 - Gross annual income £ (break down into basic + variables)

£6500 basic

Annual value of child tax credits and child benefit

£4940

Annual value of working tax credits

£0

Annual value of DLA payments

£3900

Monthly cost of loans/HP
£0 and time left to run (Months)

Credit card balances

£2000 currently, will be cleared within 6 months, would ensure they were £0 by the time any mortgage completes, if earlier

Any other expenses, such as maintenance, childcare
£0

Ages 33 & 27