New rules clarification

WillyWonga

Hi all,

Looking to move house and have a £97k o/s balance with Platform on an original house purchase price of £120k.

Looking at a house to buy £135k and will have £45k deposit - 66% LTV. So looking at a £90k mortgage.

I noticed my Platform paperwork said the product was portable and phoned them up. They said since the new rules came in on lending this year my situation will have to be reassessed. They number crunched and they said no. Reason being my original application had carers allowance/ dla for my son and also tax credits which they put as my wifes income as she is the main carer. My salary is £22k a year.

We originally went through Platform 3 years ago as still had a default on my credit file but as at the time it was over 3 years old they ignored it whereas the other lenders didn't. It is now cleared off my file and I have a clean credit history as does my wife.

Can someone tell me if any lender looks at tax credits/carers allowance or with the new rules is it employment only?

Many thanks in advance

ACG

Most lenders will accept benefits to some degree or another.
Its just a case of checking the lenders income criteria and running it through the calculator of that lender.

Alternatively get a broker on the case and see what they come back with. I imagine there will be lenders for this as its not heavily reliant on the tax credits.

Thrugelmir

What's your total household income.

WillyWonga

Many thanks guys.

I want to keep it to the bare minimum of benefits to ease the process of a mortgage.

I realise the situation of carers allowance is going to be tricky as when my son is 16 next year its a case of reapply all again and in this day and age nothing is certain so I'm going to stick to one child benefits (still 4 years to run to she is 16).

My wage is £22k plus child benefit and tax credits for one child will total £24,391.

Car lease is £147 month (2 years left) is only other major expense.

Looking at a £90k mortgage for £135k purchase after putting in £45k equity in this house. Our current house has 2 offers at moment so ideally need to get a mortgage in principle set up to allow us to put offers in on a new house.

On this brief description would you say it could be a High St lender or an off shoot of a High St lender?

Many thanks all.