Income question - do some benefits count?

JamesN

Hi

Looking at taking a mortgage for a 10 year fix with tsb. My wife doesn’t work but the child benefit is in her name. It’s worth £2,500/year as we have 3 kids. Once the youngest is old enough for school she will be going back into work (so in 5 years).

On the affordability questions it says income. To me, I’d class child benefit as an income. But if it isn’t allowed I wouldn’t want to mislead anyone. I don’t want to start applying to find that after an hour of talk I can’t include the amount.

Does it vary by lender or is there a standardised list of income?

Thanks

YoungGentry

Take home pay and bonus is what is used the calculation

LRmortgage

It varies by lender and will often depend on what the amount of total income you jointly have.

I.e. a lot of lenders will exclude child benefit if the other income totals more than £50k per annum.

Each lender has their own little quirks with child benefit, you should be able to check the criteria before you submit.

Which lender are you thinking of using?

LRmortgage

Sorry, I just re read your post and see you mentioned TSB.
I’ve looked up the criteria and it they will take child benefit if the other income is less than £50k.
You would let 100% in the other income box but they will only use 60% of that towards affordability. Their system will automatically do the calculation though.

strawb_shortcake

Natwest and Santander both included child benefit and possibly CTC when we have mortgaged.

Mrsn

My sister has her mortgage through Lloyd’s and has been allowed to use the child benefit

JamesN

LRmortgage wrote: »

Sorry, I just re read your post and see you mentioned TSB.
I’ve looked up the criteria and it they will take child benefit if the other income is less than £50k.
You would let 100% in the other income box but they will only use 60% of that towards affordability. Their system will automatically do the calculation though.

Thanks. I’m just shy of £50k so that works out well. I’ll have a look at submitting the application.