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Mortgage with working tax included question

(7 Posts)
christmasclean Mon 17-Feb-14 13:13:59

Has any one actually had an offer refused upon application because their children were teens, and only qualify for a another 3 to 5 years.?
Basically been on phone to barclays this morning getting more options and info and the lady said it could be refused as the children are teens. The lady from the other day never mentioned it and now I'm upside down and worried sick

poshfrock Mon 17-Feb-14 17:21:27

OP your post isn't very clear. Do you mean that you've applied for a mortgage and included working tax credits and child benefit in your income calculations, and that the bank may refuse the application on the grounds that as your children are teenagers you will only qualify for the credits and CB for another 3 to 5 years ?
If that is the case then yes I suppose they could refuse it unless you can show that your income will increase to fill the gap or that your expenses will decrease.

christmasclean Mon 17-Feb-14 23:51:03

No I haven't yet applied as need to be receiving my single parent tax credit for 3 months. I went on the online calculator and phoned up to get more info and options. Just getting as much sorted as possible really, then when I called today for some more info the lady I spoke to told me it could be refused due to their age

RedHelenB Tue 18-Feb-14 07:38:18

That makes sense if you think about it as your income will drop in a few years time. i also heard that they weren't fully counting tax credits any more due to the government changes to the system.

HappyMummyOfOne Wed 19-Feb-14 13:18:08

A lot of banks wont include it as the new UC system will see tax credits abolished.

As a side point, is it wise to take out a mortgage based on benefits that could be withdrawn at any point? If you need the WTC payment to get the mortgage, what will happen in a few years when it stops and your income drops?

LauraBridges Wed 19-Feb-14 16:52:15

I never knew they counted state benefits as income in mortgage applications at all. It surprises me. The state could change the rules at any time. I suppose I assumed the benefits were so low they would not be enough to get a mortgage with even including other income.

RedHelenB Wed 19-Feb-14 18:29:48

Laura - tax credits supplement a low wage.

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