Income for mortgage application

stripedbanana

We have a DIP from Natwest and hopefully will be moving to full application this week (if our offer is accepted!). Our broker seemed uncertain of what exactly would be taken into account as income, hoping someone here might have some experience of circumstances like ours. Quick background, I am employed and my partner is a FT carer for our disabled child. Our current household income consists of:

Wages + shift allowance - more or less the same every month but varies slightly, will they simply take an average? Also do they look at gross or net and how do my student loan and pension contributions fit in?
Child Tax Credits - these are primarily in my partner's name IIRC although both our names are on there but are paid into my account for ease of paying our direct debits, does it matter which of us "claims" it as our income on the application?
Carers Allowance
Child Benefit
DLA - in our child's name so strictly speaking does not belong to either of us, can it still be considered for affordability purposes?

Does anyone know how accommodating Natwest are with all of the above? Also are Natwest a lender who credit checks at the DIP stage or later?

ACG

If the DIP was done by the broker, then a credit check will have been carried out. I think another will be done at time of application.

Surely your broker should have checked all of the things you list if it was needed before doing a DIP with anyone What income figures did he/she put on the DIP form?

Wages + shift allowance - will work off the Gross figure, shift allowance will probably be used fully but without knowing more I cant ay with a cast iron guarantee.

Child Tax Credits - should be fine to use this fully, but will depend on the age of the kids. If they are over around 12/13 then it might not be possible ot use it.

Carers Allowance - should be allowed
Child Benefit - should be allowed in the same way as child tax credits.
DLA - im not sure.

Leave all of this for your broker to sort out, that is their job.

stripedbanana

Thank you. The broker used my gross plus average shift allowance as my income, then carers allowance plus tax credits for my partner. To be honest I think he finds our situation more complicated than most so he did the DIP just to see what would come back. I just wanted to be able to give him accurate figures when we move to full application so it's as straightforward as possible when the lenders start asking for evidence of everything. Also a bit nervous about our affordability checks (although the mortgage will only be for around £110,000 with repayments less than our current rent) so nice to have some reassurance that everything can be counted. Thanks for your input

Thrugelmir

stripedbanana wrote: »

To be honest I think he finds our situation more complicated than most so he did the DIP just to see what would come back.

Are you pushing the boundaries of affordability by attempting to throw everything in as income. Which obviously it isn't. As some of what of you receive is for a particular purpose.

amnblog

Nat West accept shift allowance, tax credits, child benefit CA, and DLA.

As ACG says all are dependent on how long we expect them to last (benefits), or what track record we have (shift allowance).

If your Broker does not know what they are doing they may be get you a result anyway.

stripedbanana

Are you pushing the boundaries of affordability by attempting to throw everything in as income. Which obviously it isn't. As some of what of you receive is for a particular purpose.

Definitely not. Between what we pay in rent and what we save towards deposit every month we could make these mortgage repayments twice with change. Just needed to know what they'll include when they decide, because if it was based on my wage alone on paper it wouldn't add up.

Nat West accept shift allowance, tax credits, child benefit CA, and DLA.

As ACG says all are dependent on how long we expect them to last (benefits), or what track record we have (shift allowance).

Thank you that's what I was looking to clarify. Broker is a work benefit so I think he's used to straightforward clients just using wages.

Mortgage_Adviser

stripedbanana wrote: »

. Our broker seemed uncertain of what exactly would be taken into account as income,

Sounds like fantastic broker to me.:rotfl: