Mortgage help needed please

Freddy127

I gave up work to have the kids so my income is only what I get in tax credits and child benefit, I also have a personal loan in my name with fairly sizeable monthly repayment, as a result husband will be making the mortgage application as a single applicant. What we’re a little confused about is our joint bank account… currently all income from his job and my tax credits etc are paid into one single account in both our names, and of course this means that all bills and outgoings come out of that same account.

When we looked at a joint mortgage application, as soon as that loan was entered, all websites dramatically reduced the lending, hence why we decided to put it just in his name, but now the question is, will having my personal loan coming out of the joint bank account affect his mortgage application? If the mortgage company look at the bank statements then the loan will show, is this irrelevant since its in my name, or will this cause a problem? Wondering if I need to set up my own personal bank account, pay my tax credits in there and then transfer the loan direct debit to come out of there, or will they still check this as I am ‘financially linked’ to him?

[FONT=&quot]This mortgage stuff is a minefield! TIA for any advice.[/FONT]

ACG

I think the bigger issue will be finding a lender who will allow your husband to get a mortgage in his sole name whilst married and presumably some of the deposit being yours?

The loan may get raised as a question and may be an issue... but it will come down to the lender.

Senior_Paper_Monitor

This one may be very tricky - own application (if allowed) will almost inevitably have you and kids as dependents so no benefit(s) taken into account.


Broker time - far too many potential pitfalls here to think about random applications .....

Funny_old_game

The fact of the matter is when asked what his marital status is and how many dependants he has needs to be answered truthfully so either case you wont avoid it without lying.

ACG

Tax credits may mean you can put not financially dependent....
Its too complicated as above, get a broker its going to increase your chance of getting this through no end.