Mortgages and child maintenance

work.alw

Hello

When applying for a mortgage after divorce, as someone who PAYS rather than receives child and spousal maintenance, is the total amount that can be borrowed based on actual salary, or salary minus the compulsory maintenance payments.

(Eg if someone earns £2000 per month but pays £1000 per month in maintenance, is the amount that can be borrowed calculated on the £2000 or the £1000? And how likely is it that someone with this level of expense will be able to get a mortgage?)

Thank you

holly_hobby

Less maintenance payments, as it is a regular commitment.

Hope this helps

Holly

work.alw

Yes that helps. So in the boxes where you are asked to tick whether you have any dependents, do you then put "no", as the dependent children are already covered (financially) in the maintenance payment?

All online mortgage calculators seem based on gross income, would it be wise simply to put half the actual gross income to have a fair idea, as essentially half the income goes in maintenance?

holly_hobby

The maintenance would be disclosed under q's relating to regular financial commitments.

H

work.alw

OK. The websites we have found (you know the ones that mortgage companies offer, just to have an idea of how much you can borrow) don't seem to take this into account, only pre existing debts etc.

But to have a rough idea, before approaching a company etc, the amount that can be borrowed is likely to be based on the salary of £1000 rather than the total take home pay of £2000?

ACG

Thats correct yes.

Also just to clarify, you can put no dependents and then the maintenance down as an expenditure (if you did both your borrowing would be reduced twice for the same thing).

Paully232000

ACG wrote: »

Thats correct yes.

Also just to clarify, you can put no dependents and then the maintenance down as an expenditure (if you did both your borrowing would be reduced twice for the same thing).

We made a similar mistake at first with regards to child nursery vouchers that come out of pay before tax. Added expenditure for nursery in another section as full amount paid, so in effect as counted twice. Looked like we were paying over £1000/month for nursery fees which clearly reduced the amount we could borrow.

dimbo61

Not paying half your income in CSA payments are you ?

Thrugelmir

work.alw wrote: »

OK. The websites we have found (you know the ones that mortgage companies offer, just to have an idea of how much you can borrow) don't seem to take this into account, only pre existing debts etc.

Online calculators cannot account for every personal situation. In unusual circumstances consult a broker. As knowing the market is what matters.

kingstreet

Don't reduce the income you put in the affordability calculator.

Enter the correct income and if there is nowhere suggested, put the maintenance payment in the loans/credit commitments box.