Help to buy - newbuild eligibility criteria

leveller2911

grrrhouses wrote: »

Think we will probably be border line case anyway
will post our details so that I can let people know if we do get the approval
and mortgage etc.


Joint application. 1 working, 1 stay at home mum. 34 and 35 yrs old.


Dependants 4





Wages 21,300 pa


Child Tax Credits 9990


Child benefit 3146





Debt 193 pm. 4 years left of old 9 yr homeowner loan. (currently renting)
No other debt. Excellent credit history. looking for a 35 year ish term.


Deposit of 10k. Looking to purchase for £165000 ish

Fancy a guess at our chances anyone?

Earning over £21k a year and still receiving over £13k in benefits........No wonder the country is going to the dogs. Its perverse that benefits are taken into account for mortgage affordability ,for one thing many people who are trying to save for a house get f*ck all in benefits. I would also say that benefits can be changed at the drop of a hat so I do wonder how many of those who have relied on benefits to get a mortgage will struggle once benefits are cut soon .......

Not having a dig at the OP its the pathetic system.......

grrrhouses

leveller2911 wrote: »

Earning over £21k a year and still receiving over £13k in benefits........No wonder the country is going to the dogs. Its perverse that benefits are taken into account for mortgage affordability ,for one thing many people who are trying to save for a house get f*ck all in benefits. I would also say that benefits can be changed at the drop of a hat so I do wonder how many of those who have relied on benefits to get a mortgage will struggle once benefits are cut soon .......

Not having a dig at the OP its the pathetic system.......

Yeah...

and if we had a living wage i'm sure husband would be earning equivalent of £34k... and if house prices weren't so high blah blah blah.....

Are you also saying that these 'many people' who don't get any benefits should get some? or maybe if they did they shouldn't accept them?

Anyones circumstances can change at the drop of a hat and is no reason to not to have a mortgage as much as it is no reason not to rent a house. If it's not a dig I'm not quite sure what your post is for!

leveller2911

grrrhouses wrote: »

Yeah...



Are you also saying that these 'many people' who don't get any benefits should get some? or maybe if they did they shouldn't accept them?

Anyones circumstances can change at the drop of a hat and is no reason to not to have a mortgage as much as it is no reason not to rent a house. If it's not a dig I'm not quite sure what your post is for!

Oh it is a dig , but not at you personally (as I made clear above). You don't see any problem with receiving £13,000 a year in benefits that you can use to calculate affordability on a mortgage whereas someone who doesn't have children gets zilch and cannot get the equivalent mortgage as you because(A) They don't have children and don't receive benefits and (B) Many people (and this isn't aimed at you but take it any way you like) will manipulate their working hours to maximise benefit entitlement.

The fact is many are priced out of buying a home by the benefit system subsiding those with children and lenders taking these benefits as earning when working out affordability.

If you don't like my post then feel free to put me on ignore.

grrrhouses

leveller2911 wrote: »

Oh it is a dig , but not at you personally (as I made clear above). You don't see any problem with receiving £13,000 a year in benefits that you can use to calculate affordability on a mortgage whereas someone who doesn't have children gets zilch and cannot get the equivalent mortgage as you because(A) They don't have children and don't receive benefits and (B) Many people (and this isn't aimed at you but take it any way you like) will manipulate their working hours to maximise benefit entitlement.

The fact is many are priced out of buying a home by the benefit system subsiding those with children and lenders taking these benefits as earning when working out affordability.

If you don't like my post then feel free to put me on ignore.

Wow what a strange view! Didn't know that was why house prices were so high!:rotfl: (A) Guess you don't have kids then? Most lenders reduce borrowing for each dependant you have and many of us are still priced out despite getting what you appear to think are huge sums of 'benefits'. It's tough for most people to buy a property not just people without kids.

HTB_newbie

leveller2911 wrote: »

Oh it is a dig , but not at you personally (as I made clear above). You don't see any problem with receiving £13,000 a year in benefits that you can use to calculate affordability on a mortgage whereas someone who doesn't have children gets zilch and cannot get the equivalent mortgage as you because(A) They don't have children and don't receive benefits and (B) Many people (and this isn't aimed at you but take it any way you like) will manipulate their working hours to maximise benefit entitlement.

The fact is many are priced out of buying a home by the benefit system subsiding those with children and lenders taking these benefits as earning when working out affordability.

If you don't like my post then feel free to put me on ignore.

I am someone with kids who gets no benefits at all and yet I am completely baffled at your view! How does someone getting working tax and child tax credits help them get a mortgage over somebody who doesn't?

The costs of childcare and other costs in bringing up a child are rightly taken into account by lenders when deciding what you can afford and this can lead to a huge reduction in the amount which you can borrow. Even with my eldest now at school we still pay on average £1100 each month for child care for him and his younger sibling which causes a huge reduction on what we could borrow compared with a childless couple having the same income.

For my albeit limited understanding of the OP's benefits, these contribute some (not all and certainly not in excess of) the costs of having children which is factored in to the mortgage lenders affordability calculations, so how could the OP be better off?

I don't get any of these benefits because we are lucky to have well paying jobs and that is in my eyes only fair. We can afford to work without these benefits. Why shouldn't hardworking families which may otherwise be prevented from working when they have children by high childcare costs be assisted?

danielanthony

There's nothing lucky about having a well paid job, I worked hard and studied for mine, no luck at all.

amnblog

kingstreet wrote: »

Well, the Calculator has an entry to add Working Tax Credits, Child Tax Credits, Child Benefit, Disability Allowance, Other Income and Guaranteed Maintenance and so does the PIF.

It would therefore appear perverse to request information on such things, then exclude them, which I'm pretty sure the Calculator doesn't.

The calculator includes the tax credits and other items in both the maximum income multiple and the debt to income ratio calculations.

As far as I am aware they are part of the household income.