Mortgage in Principle and change of circumstances

gaia66

I did an affordability check with Halifax for a mortgage application and they took 60% of my Tax Credits into account. I then got a Mortgage agreement in Principle where they did again income calculation and credit checks, both of which I passed. I have now booked and paid a surveyor who hasn't been around yet. As we are at the end of the year, my Tax Credit changed and I am now, as from today, receiving £15 less per week. It may not be a big amount but I am very concerned that it will affected my affordabilty on the amount of the loan. My income is low and the Tax Credits really helped. Will they check again when going through the proper application and would it be advisable to inform the bank and redo another revised Agreement in Principle before it gets to the proper application?

Gaia

amnblog

When you apply they will ask for your tax credit statements and check the income declared matches your current income.

Best to deal with this before you spend money on the valuation.

gaia66

The valuation has already been booked for next week and paid for, perhaps I should stop it before I sort this out.

amnblog

Do you believe you are tight on affordability?

gaia66

yes I think I am just about there

gaia66

But I could ask for a slightly smaller loan and put a little bit more deposit

amnblog

I would have thought £15 pm on tax credits will reduce your maximum lending by no more than £5,000

gaia66

Yes that's right, but it if I don't reduce the loan request by £5000 before it goes through the application it may come up as aanffordable

amnblog

All that will happen is that the lender will adjust maximum affordability.

If you are still within limit there will be no effect.

gaia66

I realised the Tax Credit calculation is wrong and I have asked them to adjust it. It will take a couple of weeks I suppose, so I think it would be better if the claim is not looked at right now otherwise they will decide affordability on the wrong amount.
Thank you for your help