which benefits can be used as income??

Cookieraider_2

Hi,

we currently have a mortgage of £194,000 at 1.6% variable. Our circumstances have changed considerably since we took this out and whilst we have a favorable rate im worried if when the time came to change our mortgage no-one would lend to us . We have 2 children...And I wondered if/what benefits listed below could be accounted as income???

My husband was made redundant last year, claimed JSA and did a scheme with the job centre to support him become self employed (earnings almost zero as new business & buying tools etc, has another couple of months of benefit support)

Im self employed a few hours a week, new business only 1 year old, also not earning much yet still setting up etc.

A month I claim:

Carers allowance of £236
Dissability Living Allowance at £296 (for child)
Child tax credit at £679
Child benefit £134
Full Council tax benefit £116
SMI -Mortgage support due to stop
Possibly allowed Income support for Husband after JSA scheme?

Thank you

_Andy_

Even if all those were taken into account it would be nowhere near enough income you'd need for that size mortgage

mummyroysof3

Natwest are our current mortgage providers and would lend us to upsize and part of our income is carers dla and high tax credits.

ACG

Different lenders accept different benefits but as Andy says, that income is nowhere near enough to get a mortgage. Even if you could though i would be very reluctant to lose a rate of 1.6%.

You need to get your incomes up and become less reliant on state benefits - when rates do rise you will struggle.

HappyMJ

Cookieraider wrote: »

Hi,

we currently have a mortgage of £194,000 at 1.6% variable. Our circumstances have changed considerably since we took this out and whilst we have a favorable rate im worried if when the time came to change our mortgage no-one would lend to us . We have 2 children...And I wondered if/what benefits listed below could be accounted as income???

My husband was made redundant last year, claimed JSA and did a scheme with the job centre to support him become self employed (earnings almost zero as new business & buying tools etc, has another couple of months of benefit support)

Im self employed a few hours a week, new business only 1 year old, also not earning much yet still setting up etc.

A month I claim:

Carers allowance of £236
Dissability Living Allowance at £296 (for child)
Child tax credit at £679
Child benefit £134
Full Council tax benefit £116
SMI -Mortgage support due to stop
Possibly allowed Income support for Husband after JSA scheme?

Thank you

All except the council tax benefit and mortgage support can be used to support a mortgage. You expenses will also be taken into account and whatever is left over can be used to make a payment on a mortgage so whatever that amount is should determine the size of the mortgage.

However, 2 adults and 2 children on that amount of money wouldn't leave you with much.

What's wrong with staying with the fantastic rate you have now?

Cookieraider_2

HappyMJ wrote: »

All except the council tax benefit and mortgage support can be used to support a mortgage. You expenses will also be taken into account and whatever is left over can be used to make a payment on a mortgage so whatever that amount is should determine the size of the mortgage.

However, 2 adults and 2 children on that amount of money wouldn't leave you with much.

What's wrong with staying with the fantastic rate you have now?

Im worried for when the rate goes up - are we talking a couple of years do you think?! scared

holly_hobby

You'll also find that the benefits you've quoted (ex JSA/ISupport which are excluded full stop), will be treated as secondary income, which means that only a % proportion will be utilised in any assessment, and not a 100% of the amount recd.

Seriously, this is a complete no go'er, stay where you are on what you're on ....

Hope this helps

Holly

Cookieraider_2

holly_hobby wrote: »

You'll also find that the benefits you've quoted (ex JSA/ISupport which are excluded full stop), will be treated as secondary income, which means that only a % proportion will be utilised in any assessment, and not a 100% of the amount recd.

Seriously, this is a complete no go'er, stay where you are on what you're on ....

Hope this helps

Holly

Oh if its classed as a secondary income whats the approximate % they'd account for then?

Thanks, I am definatly staying where I am I know its a good rate but one day I will have to change/fix it once the rates go up, I'm just thinking ahead as we are soo worried about our future both being newly self employed (and currently with very little income apart from the benefits and 2 small children)...I guess it would be nice to know to put our minds at rest

holly_hobby

Sorry I've mislead slightly - there are lenders, where if the bulk of your income is earned and not derived from benefits, will look at treating certain benefits as standard income - however this obv wouldn't be applicable at this time, given both the amount recd and the level and reliance upon DWP benefits you have.

Those lenders whom will treat benefit receipts as secondary income, will typically look to use no more than a max of circa 2/3rds received as part of the affordability assessment (eg Halifax take 60%).

One thing I would point out, is that you don't have to change lender (ie remortgage) to secure a follow on product, you can do that with your current lender, under their existing borrower deals. Furthermore, if there is no futher borrowing requirement, there will be no further status or income checks (solving the income and benefits issue), athough there may be an admin fee depending upon product selected. Would this better until you have sufficient SE income with at least 12 mths+ SA302s for lender review ?

Hope this helps

Holly

Cookieraider_2

holly_hobby wrote: »

Sorry I've mislead slightly - there are lenders, where if the bulk of your income is earned and not derived from benefits, will look at treating certain benefits as standard income - however this obv wouldn't be applicable at this time, given both the amount recd and the level and reliance upon DWP benefits you have.

Those lenders whom will treat benefit receipts as secondary income, will typically look to use no more than a max of circa 2/3rds received as part of the affordability assessment (eg Halifax take 60%).

One thing I would point out, is that you don't have to change lender (ie remortgage) to secure a follow on product, you can do that with your current lender, under their existing borrower deals. Furthermore, if there is no futher borrowing requirement, there will be no further status or income checks (solving the income and benefits issue), athough there may be an admin fee depending upon product selected. Would this better until you have sufficient SE income with at least 12 mths+ SA302s for lender review ?

Hope this helps

Holly

our lender 'First Active' do not take on new customers, only their existing.
So would they let me start a new fixed rate mortgage with them when the times comes?

kingstreet

You now borrow from RBS directly if you move house.

FA may have customer retention products for those existing borrowers not moving home as an alternative to SVR.