How high can we aim?

vitaminz

So me and my fiancee and currently looking for our first house together, and we're a bit confused as to how much the bank would borrow us. I'm a software developer currently earning £31250 a year, and my fiancee is not working, but does help care for her disabled mother.

Anyway, I spoke to Natwest (my bank) and they initially give me a mortgage in principle of £135000 with a £15000 deposit. I was a bit disappointed with this as I didn't really want to pay that much deposit, especially for just £135000. I went onto various online calculators and eventually realised I'm missing some other sources of income, namely:

1) Child Benefit of around £80 a month
2) DLA which I am receiving indefinitely for Dyspraxia and sensory issues (although I am due to have to apply for PIP late next year) - this is £307.40 a month
3) My fiancee is also in receipt of carers allowance for her mother, at £61 a week. This will continue even after we move out as my fiancee will be helping her daily.

After including these in the calculators some lenders are prepared to lend me a huge £180000 (with £15000 deposit) which is obviously a huge difference! We're finding a lot of houses that interest at the £180000 mark, which I'm hoping could be a loan of ~£170000 with £10000 deposit (using the help to buy scheme perhaps).

Is it wise to include these figures in my income? Do most lenders even class this as 'real' income?

amnblog

This is not just about affordability calculations, it is also about credit scoring. It appears you are trying to work on a sub 10% deposit and your credit file may simply not be up to it.

For best results, engage a mortgage broker.