Mortgage affordability checks

Thingscanonlygetbetter

Hello,

It's been a while since I delt with mortgages and there is such varying info on the web, but we are hoping to sell our house and purchase a new build with the help of help to buy scotland soon, im a little concerned though as though we have checked our credit reports and score high and have no missed payments we now have young children and child care costs alone are over 35% of our income when worked out not including child benefit and child tax credits, and 25% when they are included.

....... So my real question in are these benefits taken in to account as income or are all lenders different?

ACG

Depends on lender and age of the kids.

If they are around 12+ then chances are not.

Check the lenders affordability calculator or speak to a broker.

Thingscanonlygetbetter

Thanks for your reply, they are both under 5, it was specifically help to buy we were hoping to go with and from what I have been told they only use specific lenders and up to 3.5 times joint income, help to buy would be our only option as we have outgrown our home and bought in the market peak so have lost a lot of money we invested originally.

We have also been told they won't deal with us until we are under offer, which makes me a little worried.

ACG

There are certain lenders who have signed up to help to buy, but there are other lenders who do 95% mortgages.

Ignore the 3.5x income thing - that is incorrect. There are lenders who will do upto 5.5x (but only under certain circumstances), its all based on affordability. You can read loads on the internet but half of it is a load of rubbish.

Some estate agents will insist on an agreement in principle, others will not - there is no set rule.

I think you could do with speaking to a broker. With all respect it looks like you are reading things that are incorrect, you dont know what is and isnt correct. Get a broker working for you, they will either take it all on or at the very least give you help and guidance for your individual circumstances.