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Help to buy for part time earner

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Plaistow
Plaistow Posts: 5 Forumite
in House buying, renting & selling
Wondering if help to buy consider people with with low income and consider child benefit /tax credit as income towards the application decision,
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  • FreeBear
    FreeBear Posts: 14,741 Forumite
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    Nothing to stop you from saving, but as for getting a mortgage, very unlikely.
    Her courage will change the world.

    Treasure the moments that you have. Savour them for as long as you can for they will never come back again.
  • Cakeguts
    Cakeguts Posts: 7,627 Forumite
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    A mortgage is usually 25 years. You aren't going to get child benefit for a 25 year old. So you can't count the child benefit as an application for a mortgage.
  • Gwendo40
    Gwendo40 Posts: 349 Forumite
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    How can a low earner on benefits/tax credits be able to even consider the possibility of buying a house?

    Either houses in your area are insanely cheap or your benefits are far too generous.
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
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    Which HTB scheme are you referring to? If it's HTB Shared Ownership or HTB Equity Loan and you require a mortgage lender and it's the mortgage lender who sets its own criteria. Some will accept child benefit and tax credits as income whereas others won't. I'm not saying that you will pass affordability even if you find a lender who will accept them so seek advice from a mortgage broker.
  • kingstreet
    kingstreet Posts: 38,788 Forumite
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    Child benefit and child tax credits do not influence the amount you can borrow on HTB (equity loan nor shared ownership).

    If you enter them in the Government affordability calculators, they are ignored.
    I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.
  • csgohan4
    csgohan4 Posts: 10,597 Forumite
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    getting a mortgage is not just about being cheaper than rent, the maintenance costs are crippling too, a new roof, a new boiler e.t.c
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • sal_III
    sal_III Posts: 1,953 Forumite
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    Also worth mentioning the for the equity loan affordability calculation they are assuming (currently) 4.8% interest on the mortgage for future proofing AND the equity loan interests that you have to start paying in year 6. Which makes their affordability criteria much more stringent than the Mortgage Lender.
  • Plaistow
    Plaistow Posts: 5 Forumite
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    Cakeguts wrote: »
    A mortgage is usually 25 years. You aren't going to get child benefit for a 25 year old. So you can't count the child benefit as an application for a mortgage.

    Definitely not depending on benefits at all, I am into part time job from 14 months due to some medical reason but I always worked full time and earned much better, considering as a current part time job I asked this question if I can get any option with help to buy scheme.

    I’m not gonna be part timer will switch soon hopefully. As far as deposit is concern I don’t have any problem upto 30k to put in.
  • Plaistow
    Plaistow Posts: 5 Forumite
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    Pixie5740 wrote: »
    Which HTB scheme are you referring to? If it's HTB Shared Ownership or HTB Equity Loan and you require a mortgage lender and it's the mortgage lender who sets its own criteria. Some will accept child benefit and tax credits as income whereas others won't. I'm not saying that you will pass affordability even if you find a lender who will accept them so seek advice from a mortgage broker.


    I will seek an advice with a broker soon.

    Thanks
  • Plaistow
    Plaistow Posts: 5 Forumite
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    Just seen this form from help to buy website where they ask for income from benefits so assume they must take this into account. Look the form assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/692986/LONDON_HTB_Equity_Loan_Calculator_-_March_2018.xls
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