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Child Maintenance Limit?

Hi,

Is there a cap/limit on how much child maintenance a lender would accept?

A friend of mine is looking to buy her own place with her two children since separating with her ex and a good portion of her income comes from the ex paying child maintenance. Before she thinks too much into this idea, I'm just curious if there is a limit on how much child maintenance a lender would accept or if there are any rules other than the contract agreement and monthly statements showing the payment.

Any information appreciated so I can pass it on.

Comments

  • TonyN1
    TonyN1 Posts: 9 Forumite
    A general rule of thumb would be that lenders don't like to use un-earned income that exceeds 50% of earned income. e.g. if a salary was £10k then more than £5k would start to be problematic.
    I am a Mortgage Adviser.

    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • tom2205
    tom2205 Posts: 42 Forumite
    Nationwide would be a good option. They will accept 75% that is income from maintenance, tax credits, child benefit but would need at least 25% earned income.
    I am a Mortgage & Protection Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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