Tax credits

WYSPECIAL

Hi,

anyone know of any lenders that would take into account tax credits?

Also what are the possibilities of using the value of a stakeholder pension as extra security?

Loan to value would be about 50%

Contemptuous

Yes, there are numerous lenders that will use tax credits towards affordability, but not necessarily the full amount (they may only consider, say, 60%).

Not sure what you mean about using a pension as extra security. Can you clarify? Do you mean you want to take your borrowing into your retirement?

leveller2911

Not wise to use tax credits for affordability when you consider they can be reduced twice a year in the budgets.

pollyanna24

Nationwide do, but make sure the awards letter you have matches what goes into your bank.

I didn't need to include tax credits as an income, but did as they asked for it, and now it is the only think holding back my mortgage offer.

I've rang tax credits and they said they send a revised letter with what I actually receive within two weeks, but as yet nothing!

Annoying when I could have left it off the application and a hassle to get it sorted.

Thrugelmir

WYSPECIAL wrote: »

Also what are the possibilities of using the value of a stakeholder pension as extra security?

Security against what precisely?

WYSPECIAL

Thrugelmir wrote: »

Security against what precisely?

In the same way that you put your house up as security.

I have a stakeholder pension that is similar in value to size of mortgage I will be looking for so could potentially use it to pay off mortgage at some stage in future. This would still leave me with sufficient income in retirement from other pension sources.

You used to hear a lot about pension mortgages but unsure if they still existed

Thrugelmir

Interest only mortgages are the exception these days. If you wish to use pensions as a method of repaying the capital. Then you'll need to find a lender that accepts this method. Affordability will based on your income alone.