Leeds BS declined due to additional income

kbeats

Has anyone else in the same situation? I applied for a mortgage with Leeds building society at the beginning of August. They have rejected my application and appeal saying they will not accept my additional income of tax credits and DLA for a dependent - has anyone else had this happen to them or had there application accepted with this additional income?

[Deleted User]

plenty will accept tax credits and DLA if its your money.   If the awards are not in your name then its not your money and you cant use it for a mortgage.  

kbeats

Deleted_User said:

plenty will accept tax credits and DLA if its your money.   If the awards are not in your name then its not your money and you cant use it for a mortgage.  

Both are in my name, my son has a disability but as he is a child I receive the award…
Leeds have refused to except either, saying the DLA does not last for a long enough period (you renew every two years but my son’s disability will not disappear) and they won’t accept the tax credits as my income is stated as different to my payslips (even though I told them HMRC calculate it by subtracting my pension contribution)
I just don’t understand as they were happy with all the income when we did the AIP and asked for all the evidence then after 7 weeks, said they won’t accept them…

[Deleted User]

they didnt have the evidence on AIP,  they just had the numbers.  Once they have looked at the details then they realised the data that they were given to make a decision on the AIP was invalid.  

Did you do the case yourself?  Or a broker?  

Leeds dont exactly hide their policy on this as it states:

Leeds Building Society can consider disability living allowance as a primary source of income, must be guaranteed for life with no review periods.


I also have a disabled child and get DLA. The letters are addressed to me, the money comes in to my bank, but the award letter states that it is an award notice for him. It is limited until he is 16 (or 18, cant remember) as at that point the letters would be put in his name and money into his account if we wanted.   It is very clear on my letters that it is his award though. 
If the award notice states that the DLA is awarded to you and has your name/date of birth etc as the recipient then there is a good chance another lender will take it.   

With the tax credits, a lender that requests bank statements to verify the income rather than the award notice would have been better really as some are very picky with needing the letter to match the calculated income to the penny.   

Might be a way of saving the case but I would assume if you are using a broker then you have gone to leeds for a reason (although if you are using a broker then they really shouldnt have put the case to them in the first place given the dla must be guaranteed for life)