Mortgage Income Proof

sadia85

Let say you earn 20k a year and you get 2k in child tax credit etc a year.

Could you tell your bank that your earnings are 22k instead of 20k.

Please advice.

Cheers

libf

No, but some lenders will take child tax credits into account as well as earnings.

cakeforbrains

Essentially, yes, but you'll have to put your wages in the 'wages' box and your tax credits in the 'tax credits' box. Some lenders allow you to include child benefit, too, if you get that.

HappyMJ

sadia85 wrote: »

Let say you earn 20k a year and you get 2k in child tax credit etc a year.

Could you tell your bank that your earnings are 22k instead of 20k.

Please advice.

Cheers

Yes but in taking that income into account they'll also take your child's expenses into account too in the affordability calculation.

Some banks you can even include child support if you get that and it's almost guaranteed....i.e you've been consistently getting it.

Contemptuous

Lenders also often only take a percentage of additional income, such as CTC, into account.

msy

Recently one high street bank assessed CTC, DLA, CA & CB as 100% income & got around 4.25 times mortgage of total income including all benefits.
1 salary, OH carer, 2 kids, no childcare, no debt.

[Deleted User]

Easiest way is to tell them "I get £20k of salary, and £2k of tax credits", and let them make of that what they will.

fairymoneysaver

Could someone tell me if rent from 2 grown up working children living with us can be used as additonal income on a mortgage application? We want to move to a similar house but in a slightly pricier area. Our income will probably cover it but just wondering incase it doesn't - we only have 9 years left on current mortgage.

alchemist.1

fairymoneysaver wrote: »

Could someone tell me if rent from 2 grown up working children living with us can be used as additonal income on a mortgage application? We want to move to a similar house but in a slightly pricier area. Our income will probably cover it but just wondering incase it doesn't - we only have 9 years left on current mortgage.

Only if they are going to be taking out a mortgage with you.

northerntwo1

People need to consider that Tax Credits are due to drop dramatically in April so the OP probably won't get any Tax Credits in April and I am sure the banks are aware of the changes but if not please do not put yourselves under financial pressure and find out what your new entitlement will be before overstretching.