Tax Credits award notice needed for mortgage approval

TeamT

Hi everyone,

We have completed our tax credit renewal over the phone just over a week ago. Then we came across a new house we wanted and went for it. Everything has progressed quickly and fine until our financial advisor insisted on having our NEW tax credit award notice to complete our new application for our mortgage.

Does anyone know of how we can get HMRC to somehow send (email/fax) this to us earlier instead of waiting possibly upto 8 weeks by which time we would have lost the house?

Any information is much appreciated. Thanks

Okydoky25

Have you called them?

tokenfield

TeamT wrote: »

Hi everyone,

We have completed our tax credit renewal over the phone just over a week ago. Then we came across a new house we wanted and went for it. Everything has progressed quickly and fine until our financial advisor insisted on having our NEW tax credit award notice to complete our new application for our mortgage.

Does anyone know of how we can get HMRC to somehow send (email/fax) this to us earlier instead of waiting possibly upto 8 weeks by which time we would have lost the house?

Any information is much appreciated. Thanks

I didn't know that Tax Credits form part of someone's income for mortgage advance purposes. Will Universal Credit be the same?
I appreciate that you want your new home, but using benefits as a means of securing a mortgage is a little bit dangerous don't you think? Especially when it was announced yesterday that there is going to be another massive withdrawal of benefits before the next election on top of what has already been decided.

If this was me, I would only be content to only use my actual earned income providing that my job was safe and secure in the medium term.

lorelai34

Tax credits do not have any facility to email or fax award notices so that's not an option. Once an award is it generated on the system it will be posted.

saving-mad

We had a nightmare with this sort of problem, I needed mine for our sons 6th form grant, school wouldn't accept a provisional one, HMRC had our renewed in June last year, due to many errors on their part, not noticing important info on the forms like my pension. We finally got it sorted with a proper award in January.
This was too late for any money from the school kitty. The previous year we were entitled to a lunch allowance, the £600 bus pass and some book money. Their blunder lost us around £1800.
Don't hold any hope of you getting anywhere with rushing them but good luck!

TeamT

Thanks for your responses and concerns. Regarding phoning the tax office, we have done that and were not given any timescales, all they said was to chase them up by phoning them on a daily basis.

Regarding using benefits for a mortgage, as long as we can comfortablly afford the monthly payments then I don't see it being an issue. I have a motto in life for myself and that is "it's not the amonunt of money you have/earn that matters, but what you do with that money that matters".

I would say we are in the minority in this country who have never had a credit card and it is all about balancing want from need.

Thanks again for your help

flutterby_lil

We recently remortgaged and they only asked for a latest award notice, this was with A&L/Santander.

Who is yours with?

JimmyTheWig

TeamT wrote: »

our financial advisor insisted on having our NEW tax credit award notice

Is this year significantly different to last year's? If not, I would imagine that the most recent on that you have should be enough.
Obviously, though, if you are relying on an increase showing on this year's form then I can see they would need to see that.

tokenfield wrote: »

I didn't know that Tax Credits form part of someone's income for mortgage advance purposes

As far as I am aware it isn't used in terms of income multiples but can be used for affordability purposes.

tokenfield

JimmyTheWig wrote: »

As far as I am aware it isn't used in terms of income multiples but can be used for affordability purposes.

Thanks for that update. I can understand it being used for that reason but to be serious about it, using a variable welfare benefit that can and will change like the wind, is a very dangerous position to be in especially when using it to calculate if you can afford the mortgage repayments.
We all know that over the next 2 years there are going to be more massive cut backs to all welfare benefits which we haven't been told about as yet.

I wouldn't even be comfortable about using earned income if there was no long term certainty in my job.

JimmyTheWig

tokenfield wrote: »

especially when using it to calculate if you can afford the mortgage repayments.

It's being used for the mortgage company to calculate if you can afford the mortgage repayments.
When we went through this procedure, the mortgage company asked us how much we spent on food each week. We gave them the accurate figure.
Now we're no OSers (we spend more than many on these boards), but we must be MSE because they said it was lower than their minimum for a family of our size and used their figures instead.

My point is, in the OP's case they might be able to afford the mortgage without these payments, but the mortgage company may think otherwise.