HELP Need to include Child Tax Credit For Morgage

UTOPIA_3

Hi Thanks for looking, I wonder if you can help?

I want to move house (I have a new baby) and 1 child all ready but only two bedrooms. I have £80,000.00 equity in my house and only want to borrow £65,000.00 to move, but due to my crap wages I am unable to. What I need to find is if anyone knows of a bank etc who will take child tax credit and child allowance (or just one would help) into account (ie as income) then I can do it.

Yours Squashed
Utopia

herbiesjp

Depending on your overall circumstances there may be a few that will take this into account - however more information would be needed by them to base their decision on.

Fairdo_2

I think First Active take Child Tax Credit into account. I know more lenders that don't take it than those who do. However, I will try to look and get back to the thread.

As Herbie said, Lenders would want to know more about the overall situation. For one point, most of them would also ask for how much you are paying in Child Care, in which they would promptly take that off your income.

As I have mentioned amonst others, it is often the affordability that counts, as if there is a really good case that you could afford the mortgage payments in most circumstances, then there should be a lender out there that would apply common sense on top if usual income multiples.

Good luck

UTOPIA_3

Hi I am maried and my wife looks after the kids, so no child care to pay for and also only got 11 years left on mortgage but want to take out one for 25years so i have worked out that I would infact be better off than I am now. What I try to explain to the banks etc is that if I can afford to pay now and my new payment would be less why cant I have the money??? It seems crazy to me..



Thanks



Utopia

Fairdo_2

Utopia

I agree with you on that.

Although as a Mortgage Advisor I am supposed to not encourage you to take out a longer term on your mortgage, if this makes things better for you in the here and now, and you are aware of the disadvantages of extending your mortgage term, then it is a perfectly legitimate way of handling your finances.

Only concern tends to be if this puts you into your planned retirement.

I have been able to get a few lenders in the past to agree a mortgage on that basis (you are paying more now and not getting into debt). This shows a good argument for affordability that I believe several lenders can use. Halifax conmes to mind at the moment.

Depending on how much risk you have in the property, lenders can "fast track" your application, meaning they do not request confirmation of your income and how it is broken down (although they have every right to ask and randomly check). This does mean that some lenders ask for total income and don't expect a breakdown of how it is derived. For Example, overtime, bonuses, commission, car allowance, benefits.

PLEASE NOTE: You should be responsible about this as you would be committing fraud if you lie about your income.