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    • Plaistow
    • By Plaistow 8th Jul 18, 10:11 PM
    • 5Posts
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    Plaistow
    Help to buy for part time earner
    • #1
    • 8th Jul 18, 10:11 PM
    Help to buy for part time earner 8th Jul 18 at 10:11 PM
    Wondering if help to buy consider people with with low income and consider child benefit /tax credit as income towards the application decision,
Page 1
    • FreeBear
    • By FreeBear 8th Jul 18, 10:29 PM
    • 1,890 Posts
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    FreeBear
    • #2
    • 8th Jul 18, 10:29 PM
    • #2
    • 8th Jul 18, 10:29 PM
    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
    • By Cakeguts 9th Jul 18, 12:13 AM
    • 4,896 Posts
    • 7,273 Thanks
    Cakeguts
    • #3
    • 9th Jul 18, 12:13 AM
    • #3
    • 9th Jul 18, 12:13 AM
    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
    • By Gwendo40 9th Jul 18, 6:00 AM
    • 159 Posts
    • 177 Thanks
    Gwendo40
    • #4
    • 9th Jul 18, 6:00 AM
    • #4
    • 9th Jul 18, 6:00 AM
    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
    • By Pixie5740 9th Jul 18, 6:40 AM
    • 12,972 Posts
    • 18,646 Thanks
    Pixie5740
    • #5
    • 9th Jul 18, 6:40 AM
    • #5
    • 9th Jul 18, 6:40 AM
    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
    • By kingstreet 9th Jul 18, 8:16 AM
    • 34,136 Posts
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    kingstreet
    • #6
    • 9th Jul 18, 8:16 AM
    • #6
    • 9th Jul 18, 8:16 AM
    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
    • By csgohan4 9th Jul 18, 8:35 AM
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    csgohan4
    • #7
    • 9th Jul 18, 8:35 AM
    • #7
    • 9th Jul 18, 8:35 AM
    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"
    • sal_III
    • By sal_III 9th Jul 18, 8:54 AM
    • 644 Posts
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    sal_III
    • #8
    • 9th Jul 18, 8:54 AM
    • #8
    • 9th Jul 18, 8:54 AM
    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
    • By Plaistow 9th Jul 18, 5:34 PM
    • 5 Posts
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    Plaistow
    • #9
    • 9th Jul 18, 5:34 PM
    • #9
    • 9th Jul 18, 5:34 PM
    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.
    Originally posted by Cakeguts
    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.

    Iím not gonna be part timer will switch soon hopefully. As far as deposit is concern I donít have any problem upto 30k to put in.
    • Plaistow
    • By Plaistow 9th Jul 18, 5:36 PM
    • 5 Posts
    • 0 Thanks
    Plaistow
    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.
    Originally posted by Pixie5740

    I will seek an advice with a broker soon.

    Thanks
    • Plaistow
    • By Plaistow 9th Jul 18, 5:54 PM
    • 5 Posts
    • 0 Thanks
    Plaistow
    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
    • kingstreet
    • By kingstreet 10th Jul 18, 8:07 AM
    • 34,136 Posts
    • 18,522 Thanks
    kingstreet
    Child tax credits and child benefit can be entered and make no difference to affordability as I said.

    Try it and find out for yourself.
    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.
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