sole mortgage joint tax credits

ksty

Hi
I'm hoping someone might be able to advise. Is there any lenders that will use joint tax credits on a sole mortgage application?
We previously had an offer from Halifax be in march which ran out in October and my broker now tells me that the no longer take joint tax credits unless it's a joint application. The issue is I don't work so a joint application drags our affordability which is already low. The kicker is we are currently in, having just sold a shared ownership, where we have to pay an extra 250 per month rent than what a mortgage would cost for 100% of a bigger house. So moving would save us a fair bit of money, we have a good deposit. Do any lenders take that sort of stuff into account?
Our broker is not great we r looking at seeing some others but I was hoping someone might have advise until we can get into see one.
Thanks

kingstreet

How are the tax credits being evidenced, bank statements or award letter?

Is the bank account they are paid into a joint account?

ksty

Thanks for the quick reply.
It's a joint bank account, I'll take my name off the account if needs be. They can be evidenced either way, however the lender wants.

kingstreet

A lender willing to accept bank statements to evidence the tax credits would probably be happier if the account was in one name but you need to speak to your broker or another one recommended to you to establish if there are lenders who would accept them being joint.

It's a long time since we've had this situation, so I can't state if you will need them evidenced in a sole name.

Dave_Ham

I would suggest go jointly to another lender (and/or broker) and exhaust this as option first.


Some lenders include none of the benefits, some 50% and some 100% so affordability between lenders can vary widely.


Your broker should be doing the thinking for you though.


All the best

Thrugelmir

ksty wrote: »

The issue is I don't work so a joint application drags our affordability which is already low.

Then you are financially dependent which has similar implications for a sole application.

ksty

My broker seems incompetent but we have an appointment with another tomorrow.
We originally saw her nearly a year ago and she told us we wouldn't have any issues gave a us an agreement in principle we sold our house made an offer on another then couldn't get a mortgage agreed for anywhere near that amount. Managed to scrap enough of a deposit together to keep the house we wanted then our buyer pulled out. Our mortgage offer ran out in sept and was done before the mortgage changes took place. I contacted the broker after the offer ran out and they ran the figures through an affordability calculator and said we could borrow more. I asked that they called and checked the new figure was accurate and tax credits could be included and wax told it was all fine. We finally sold our house again last week, called the broker they rang the halifax who offered previously and they said the offer was still on the system and once we found somewhere give the new address and a valuation would be triggered and there shouldn't be an issue. Does this sound right?
I then reminder him that he had previously given me a higher affordability figure and he ran it through a calculator again which gave a higher figure again! I asked him to call and check with the halifax, he then called back saying they didn't take take joint credits on sole applications. Is this a recent change? Will this affect the previous offer if they were taken in to account? Is there anyway I can use the old offer with a new broker?

Dave_Ham

Unfortunately this starts and finishes with your current broker and I am unsure what they are doing.


If you have been offered, technically you can get a new valuation and a new mortgage offer. Never quite that simple, but Halifax are one of the easier to deal with lenders in this sort of scenario.


Good luck - think you may need some..

Manichouse

Halifax accepted mine no problem like you its in joint names but sole mortgage is mine. The account it's paid into is a sole account so not sure if that affects it or not. I went direct to halifax which as I'm self employed I shouldn't have done but have had no problems otherwise. Maybe ring halifax direct as a potential customer and check if they would accept or not. Then your not affecting any application.