Tax credits and mortgage

pollyanna24

I have recently applied for a mortgage with nationwide where I am taking on the existing mortgage and buying my brother out, so additional borrowing.

All going fine and the only proof left before I get my mortgage offer is proof from tax credits that they give me (not very much) tax credits each month. I've rang them and they said a letter will be sent out within two weeks, but of course, nothing.

I don't 'need' this income to secure the mortgage (I did the affordability checks with and without this 'income'), but if I was to ring nationwide and ask them to proceed with the mortgage without the tax credits, would they say I have to start the whole process again?

I only put the tax credits down as they asked for other income and I thought I had to. I bank with nationwide and they can see the amount going into my account each month.

jackthesecond

I am changing my mortgage to repayment to fixed rate but need my childcare element to pass affordability. They won't accept the provisional amount calculated. Do we get another letter of confirmation of amount? I am not borrowing more just repaying what they gave me already but they won't let me. Very odd!

HappyMJ

pollyanna24 wrote: »

I have recently applied for a mortgage with nationwide where I am taking on the existing mortgage and buying my brother out, so additional borrowing.

All going fine and the only proof left before I get my mortgage offer is proof from tax credits that they give me (not very much) tax credits each month. I've rang them and they said a letter will be sent out within two weeks, but of course, nothing.

I don't 'need' this income to secure the mortgage (I did the affordability checks with and without this 'income'), but if I was to ring nationwide and ask them to proceed with the mortgage without the tax credits, would they say I have to start the whole process again?

I only put the tax credits down as they asked for other income and I thought I had to. I bank with nationwide and they can see the amount going into my account each month.

I would give them anything you have. I'd give them the bank statements highlighting the credits which are tax credits.

I doubt you've got to start the whole process again just provide whatever proof you can and the application should continue.

pollyanna24

Thanks. I have spoken to tax credits who still say the letter is on its way, but that it is now adjusted, so the payments will be now be about 15p different from what I get at the moment, grrr.

I have also spoken to Nationwide who said they want the most recent letter and if I sent them the one I have (which is dated May), they would request I ask tax credits for a new one anyone. She said regarding the 15p discrepancy, that they would probably query it, but when I send the letter in, to explain that tax credits had to an adjustment in order to send the new letter out and that I will be getting the new amount from now on.

So now I just have to hope the letter comes soon!

pollyanna24

Nationwide won't accept any letter from HMRC re tax credits as they only send out provisional letters.

This has caused huge delays and I'm still waiting on my mortgage offer as I have since taken tax credits off my mortgage application, but I wish I'd known this beforehand.

Why do they say they accept them when they clearly don't? I bank with Nationwide, so they could see the money going in every month.

amnblog

The Lender wants to confirm the credits are based on an accurate earned income figure. That is why they are pedantic on this point.

pollyanna24

amnblog wrote: »

The Lender wants to confirm the credits are based on an accurate earned income figure. That is why they are pedantic on this point.

I get why they are pedantic, but there is no way for me to prove it, so they shouldn't say they accept them.

All the HMRC will give me is a "provisional letter" based on what I have told them. And the amounts they state in the letter are what I will receive until next April when I can give them my "actual" income.