Mortgage advice please.

marvellouspotato

Over the weekend we applied for an agreement in principle with Halifax and were offered 134,800. We were quite surprised as we were expecting 155,000 or above as per the calculator.

After speaking with Halifax they revised the amount to 146,000 after removing my wife as a dependent. I was hoping MSE could clarify a few points:

In relation to financial dependents, nobody at Halifax could define at which point a person becomes independent (my wife earns 800 pcm on her casual contract and we receive tax credits as a couple). Is anyone able to shed any light on this?

In relation to working tax/child tax credits Halifax advice states: If the letter is in joint names, the income can be keyed for either applicant but both must be

party to the mortgage. Does this mean we have to apply for a joint mortgage in order to use these? Or can two names be on the mortgage even if it is applied for as an individual mortgage?

Finally, is there any scope to convince a bank to lend me more? My AIP is based on me paying back GBP 4-550 a month but I feel I can afford up to GBP700 a month comfortably (I currently pay GBP1200 on rent). I also have a large deposit of GBP110,000.

Any advice gratefully received.

Thrugelmir

marvellouspotato wrote: »

Finally, is there any scope to convince a bank to lend me more? My AIP is based on me paying back GBP 4-550 a month but I feel I can afford up to GBP700 a month comfortably (I currently pay GBP1200 on rent). I also have a large deposit of GBP110,000.[/LIST]

Lenders are under bound by regulation to assess affordability in a measured manner. Regulatory guidance is that interest rates of 7% should be used in this regard. What you might pay now is therefore not the determining factor in the decision. More a question of what if.

amnblog

Tax credits are often a complication on mortgage applicants.


Frequently the stated income on the credit award does not match the current income and that causes Lenders a problem.


If the tax credit award is not in the sole name of the applicant it won't work as it is not solely the applicants income.


To use the tax credit awarded in both names, both names need to be on the mortgage as applicants.


The problem may be that you are trying to get your 'round peg' into Halifax's 'square hole'.