Mortgage possible with low income and tax credits?

Amy11

I am just trying to see if I can get a residential mortgage in my current situation. My income is around 22,000 including salary and tax credits. I really need to know if the tax credits will be accepted as income for obtaining a mortgage as they make up a large part of my income.

I have good overall credit score but had CCJ in the past although in April it will be 6 years since.

I will have around 20,000 deposit to put down from family.

The property value would be £110-120,000.

Appreciate any response.

ACG

How much is your earned income?
What tax credits do you receive? If any is child benefit/child tax credit how old are the kid(s)?

Amy11

Thanks for replying.

My income is £13,000 (part time) and the rest is working/child tax credits and child benefit. The kids are 8 & 6.

ACG

You might be pushing it just a little bit, but i would imagine a purchase price of £100k should be possible.

Simon_gloster

The lenders who take state benefits into account will only use 50% at most 60% some of them. Therefore £9k x 60% is £5400 plus your 13k and 2 kids.

Tap that into a mortgage calculator to make sure, but I think your well short of even a £90k purchase price.

Amy11

Would it make much difference if I try to get more of a deposit together? And if I apply in April the CCJ would have come off my file.

Or any other advice or options?

Annisele

More deposit makes little to no difference to the amount you can borrow (although of course it does mean you can buy a more expensive house).

ACG

Simon_gloster wrote: »

The lenders who take state benefits into account will only use 50% at most 60% some of them. Therefore £9k x 60% is £5400 plus your 13k and 2 kids.

Thats not quite correct, most do but there is the odd one will take 100%.