right to buy, self employed mortgage advice

bexmar_2

Hi

I have submitted my council house right to buy application but am looking for advice on a few things.

I am self employed (sole trader). My last 2 years accounts are £15,000 and £25,000 so averaging out to £20,000. The property value is (my estimate) £150,000 and with my discount I will need a mortgage of £90,000. I have completed online affordability calculators on Santander and Halifax as well as a few others and the result varies greatly. Some banks take child benefit and tax credits into account which would obviously help. But my question is this... When i apply for a mortgage, it will be a sole mortgage. My partner and two children also live with me but my partner is not listed on the tenancy so does not have the right to buy. Our child tax credits and child benefit are a 'joint' benefit, so will this cause a problem if they are included in my income for a SOLE mortgage?

It's all so confusing! I think I read on Santander that to evidence your child benefit and child tax credits you have to show them 3 months bank statements. As the payments have gone into my bank account (not a joint) does this mean that it would be okay?

Thanks in advance for your help. I do have other questions too, but i'll stick with this one for now. xx

Contemptuous

If the lender uses bank statements to evidence the child benefit and tax credits then they would have no idea it's a joint claim, as it's going into an account just in your name. It would only be a concern if you were asked for the award letter. So it *should* be ok.

bexmar_2

Okay thank you!

Kittycat1981

Why not just get him on the tenancy and have a joint mortgage application? That's what we did when we bought ours.

Senior_Paper_Monitor

If your partner has lived there as his primary residence for the last 12 months the council are required to add him to the Section125 offer.


I really suggest you use a broker who specialises in RTBs to see you through the process. Some of the 'advice' above is less than accurate.