What counts as income?

JuzaMum

We already have a mortgage but need to have an affordability check to port the mortgage to another property. I had thought the fact we pay the mortgage on time would be enough!
Some of our income is given to us by a family member as a regular payment. Would this be counted?

glosoli

No this would not count as income.

Although it varies bank by bank, accepted incomes include employed/self employed incomes, certain government benefits (tax credits, child benefit, and a few others), rental income, pension income. There are of course some others.

When you say you are looking to port the mortgage, are you looking to increase your borrowing? Could you tell us what the figures are currently and for the new house, and what your income is?

JuzaMum

Thanks for that. I didn't realise child benefit and tax credits counted. We don't want the increase our mortgage. I'm a little uncomfortable giving out the figures but our annual income (without CB and TC) is probably about 15% of our mortgage debt. We have no other debts

marliepanda

So am I right in thinking your current mortgage is over 6 times your income?

You are unlikely to be able to borrow this amount again.

They may agree to port. You'll have to ask them, but if they check affordability you may be in a sticky situation as no lenders are going above 4.5 and you're over 6

TBagpuss

would the family member whogives you money each month be able to give you a lump sum so you could reduce the total mortgage debt?

Each lender has its own spcifc rules about what they count - if the income from a family member is child maintenance then some lenders will count this, for instnace, and similarly, some lenders will count things like child benefit and tax credits, although there is usually a limit on how much of your income can be made up of those things.

JuzaMum

Yes over 6 times income
And sadly no lump sums coming out way.
I guess that maybe we will have to stay put for a while

Thanks all who replied

70sthrowback

can you not check your current providers retention products and move to that without the need for affordability checks?

kingstreet

It's a house move. They aren't staying in the same property and remortgaging.

Many people think you can port a mortgage from on property to another. You can only port the rate from the old mortgage to the new one, as long as you qualify for the new mortgage and that involves credit/status and new affordability checks.