Mortgage help

phil_it

I am 45 years old first time buyer.my fiance and I currently live seperately and we both have two children.The childrens ages are 18,16,15,8.
My fiance currently has a mortgage for her property and we are looking to move in together and buying a new build house,I currently rent from a housing association.My fiance will be privately renting her house and helping me pay the mortgage on the new house with some of the excess income she will get from her house.
I am looking to take advantage of the first time buyer for new builds currently available where I would pay 5% deposit with 20% help from the government with the remainder as a mortgage.
My income from my employment is 25k per year but I also get an additional 27.5k per year from allowances,child tax credits etc.
Would my total income be used in assessing the amount of money I could borrow or just some of it?
If I were to get a mortgage in my name only would any mortgage I get take into account my partners earnings or would they be disregarded?

ACG

phil_it wrote: »

Would my total income be used in assessing the amount of money I could borrow or just some of it?

Possibly but I would imagine only a small amount of it would assuming the 8 year old is yours, the others are probably too old with most lenders to use the child tax credits you get for them.

If I were to get a mortgage in my name only would any mortgage I get take into account my partners earnings or would they be disregarded?

No.

glosoli

If you are the only one named on the mortgage, then your partners income and earnings will not be taken into consideration.

In terms of what income of yours can be taken into consideration, obviously your regular employed income will be, in terms of the other incomes, such as child benefit, tax credits, and allowances are concerned it will vary from lender to lender, but generally they can be taken into consideration. However, they will also look at the ages of the children and how long these benefits are likely to run for, it may be the case they can only take into account the benefit entitlement provided by the youngest child rather than the oldest children as it won't be long until those payments cease.

kingstreet

Would my total income be used in assessing the amount of money I could borrow or just some of it?

Some of it.

Things like child tax credits and child benefit are not taken into account in the Government's HTB affordability calculator.

My fiance will be privately renting her house

Someone who owns another property cannot be an occupier of a HTB property, so buying in just one name won't provide a solution to the existing property ownership issue.

ACG

kingstreet wrote: »

Some of it.

Things like child tax credits and child benefit are not taken into account in the Government's HTB affordability calculator.



Someone who owns another property cannot be an occupier of a HTB property, so buying in just one name won't provide a solution to the existing property ownership issue.

Everyday is a school day on here.

kingstreet

The PIF requests the number of occupiers and if number of adults is higher than the number of applicants, the HTB Agent requires confirmation of;-

occupier name(s)
relationship to applicant
why not party to purchase/mortgage
no other property is owned anywhere else in the world.

On the child benefit, child tax credit thing, you find out the hard way when you put them in the HTB affordability calculator and nothing happens!

ACG

I do not do shared ownership/Help to buy equity loan Mortgages so I have never come across them before, but it is handy to know.