Child Maintenance / CSA / Mortgage Application - ADVICE PLEASE?!(8 Posts)
I am hoping that one of you wise m-netters will be able to advise me as a v. recently separated (read: emotionally drained) LP.
I would like to make a mortgage application that takes into account as income my wages, child tax credits and child maintenance, which the bank has agreed to do. However, as proof of maintenance income they want a legal document proving how much I am being paid (or six months of bank statements to that effect, which I don't have yet).
I have one nine-year-old child so CSA say I am entitled to 15% of ex's income. However, he has agreed to pay me a bit more than that (subdued hurrah).
My problem is, I phoned the solicitors this morning and they said that, while they could draw up something that could be signed by myself and ex, it couldn?t be deemed to be legally binding, since the courts no longer have jurisdiction over child maintenance.
So, all I will be able to prove to the bank is the 15% stipulated by the CSA.
Has anyone been in a similar situation regarding proof of income for a mortgage and, if so, how did you get around it?
All advice gratefully received.
WKMum would advise you to try posting this in legal section as they maybe able to offer some good advice on this matter.
Hope you get things sorted soon - its all such a hassel when you want to get things sorted, + know your home is just that YOURS!! Be good to yourself and take time for you.
Thanks Joelybear - I'll try there.
You're right - it's all so awful having to deal with this sort of stuff as well as everything else that's going on.
I had a sub prime mortgage for a few years before approaching a high street lender. Abbey took me on using my wage, maintenance (private agreement - they used bank statements as proof) and my WFTC statements as proof of ability to pay. This was about three years ago. I did have very high equity in my property so that may have influenced their decision to take me on.
Can you ask the CSA to assist - they are supportive of people having private arrangements so might have handled this situation before. They could provide you with a statement that the ex contributes 15% - could that be sufficient for mortgage (but maybe he has offered to go over the CSA settlement by a larger amount and that is needed for mortgage?)
If you have reasonable equity then mortgage process will be more straightforward, another option maybe for your ex to give you a lump sum in lieu of extra CSA and use that to put against the mortgage.
A word of caution - CSA is obviously dependant on your ex's salary which like the adverts say can go up and down, he may at some stage need to lower the amount per month so I would encourage you to get as self reliant as you can for the mortgage costs. I'm speaking for experience as a single mum, it's very satisfying to a get to the stage of being able to provide housing costs for yourself
I think that if you have to rely upon your ex's maintenance payments to meet a mortgage criteria then you may be in danger of stretching yourself too far and that you may create problems in the longer run.
What if ex decides one month to not cough up or he changes jobs in a years time to something paying less?
Always treat maintenance as a bonus, not an income to live off.
Thanks very much to all for the sound advice.
I only work part-time, so I'm afraid that I do need more than the 15% of his income the CSA are allocating to get a mortgage, despite having a reasonable amount of equity.
Unfortunately, I live in an expensive part of the south east, and I could only get a one-bed flat based on my deposit and what I could borrow, so the extra money from my ex would make quite a difference to my standard of living.
I could move to a cheaper area, of course, but I feel as though I need my support network of friends now more than ever and I am trying to disrupt my DD's life as little as possible.
I do definitely take the point that it's best not to rely on the maintenance, though - thanks!
I recently applied for a sole morgage and I had to either show bank statements to prove the payments or get the financial order (inc agreed maintenance amount) signed by the court.
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