Mortgage App stalled

cycloneuk

Using a broker due to being self employed and a little bad credit 4+ years ago, got AIP and mortgage app is in.

Lender is requesting a new tax credits awards notice because the current one shows my income at 2.5k less than I actually earned for 2014/15 and are concerned my payments will reduce affecting affordability.

You don't have to notify them unless you earn more than £5000 before it effects payments. HMRC are in renewal period now so nothing can be done, told to wait for claim pack in June. Gutted since found somewhere we like, explained above and awaiting lender decision next week, don't think they will progress it any further.

TravelBugHappy

Sounds like your payments will go down next year though - so current tax credit award invalid.

Theres a tax credit calculator or HMRC website - wouldn't it be great if the lender could just use that to calculate what payment you will receive.

Do you need to include the tax credit payment to get the mortgage you require? If not then its probably better to leave it off

amnblog

This is a common problem and the reason why lenders like to see all eight pages of the award document.

cycloneuk

Yeah we need the tax credits, we are already putting down a 20% deposit, HMRC wont generate a new award anyway unless the increase is more than £5000 since it falls within the 'income disregard' level. So the lender isn't going to get a new award with the exact amount I earned, bit of a catch 22 situation.