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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To ask if benefits are included in a mortgage calculation?

29 replies

Keepit · 20/01/2019 19:47

I’d love to be able to buy my own home, currently I live in private rental at £800 per month (which is actually cheap for the city I live in and the outskirts) however I know paying a mortgage would be far less per month. I hate not knowing how long we have until we are asked to leave or the rent is brought in line with others in the area (several hundred pounds more per month) I have two dc one with SEN and it would help so much to feel secure and be able to make adaptations to the house. Currently I’m not even allowed to paint or put up a shelf and live in fear of ds damaging something. I have savings for a deposit however I only earn £18,000pa and I can’t see that increasing anytime soon which means a mortgage based on that wouldn’t get me anywhere. However if I included a years income of tax credits, child benefit etc then in conjunction with the help to buy scheme I might stand a chance. Is that even considered? Tbh this is all way out of my comfort zone and I’m not really sure what I’m doing or what counts as income. Any advice would be really helpful.

OP posts:
Beesneeze82 · 20/01/2019 19:50

I looked into this a while ago. At the time there was one lender, Natwest, that took tax credits into consideration.

RagingWhoreBag · 20/01/2019 19:52

Even if you can have your benefits included for the purpose of calculating a mortgage you’d probably be worse off, as I expect you’re eligible for housing benefit at the moment, whereas you don’t get any help towards paying a mortgage.

Spookyspoonmcginty · 20/01/2019 19:52

If you go to a mortgage broker they may be able to find a lender who will consider your tax credits as part of your income

UnderMajorDomoMinor · 20/01/2019 19:52

You could have a look on a few calculators. I did the Santander one recently and it took child benefit into account. I don’t have any others so couldn’t tell you specifically but it suggests they do - it is income after all!

BusySnipingOnCallOfDuty · 20/01/2019 19:55

They seemed to count my benefits even though I told them that once OH and I cohanited at the new place, I wouldn't qualify for benefits anymore.

This was HSBC. The letting agents was Roman's but it was their independent guy in that particular branch who sorted stuff. He was amazing.

ghostyslovesheets · 20/01/2019 19:55

I'm with Halifax - they took into account Cb, CTC and non court awarded maintenance

Pimmsypimms · 20/01/2019 19:55

We've just got a mortgage with Nationwide and they take our child benefit for our youngest dc in to account (6) but not our oldest (13)

Original poster
Keepit · 20/01/2019 19:56

Thank you, so it seems some will and some won’t, it could actually be possible.

No I don’t receive any housing benefit, applied but don’t qualify

OP posts:
ThatsitIquit · 20/01/2019 20:00

Halifax included my Child Benefit, tax credits and PIP.

MsVestibule · 20/01/2019 20:06

Definitely speak to a mortgage broker. The free ones don't normally do the 'whole of market' but will give you a very good idea which mortgage lenders will include benefits. If you don't know where to find one (although I'm sure google will help!), some estate agents have them.

Junglerum · 20/01/2019 20:08

Most will only take them if mortgage term is shorter than anticipated receipt ie if child is 14 can only take into account for 4 years. Halifax one of most generous for taking benefits into account from my Broker days

Ginnymweasley · 20/01/2019 20:12

Natwest take child tax credits and child benefit into account but my broker said that it does often depend on the age of the child as to what % they take. The younger the children the more they consider.
See a broker to discuss the best options.

Original poster
Keepit · 20/01/2019 21:41

Thank you for al the replies, I will look into speaking to a broker. Nice to know that ownership may actually be an option Smile

OP posts:
Onandonandons · 20/01/2019 21:44

Definitely speak to a broker. We used one. Only cost £350. We paid only on completion. Worth the money for sure. He was so helpful.

Fairylea · 20/01/2019 21:46

Nationwide did for us... we have an income including tax credits, dla and carers allowance. They asked for evidence of them all and used them in their calculations.

ErickBroch · 20/01/2019 21:51

Jesus, our mortgage is just under £800 a month and that's a good deal where I live. I definitely suggest a broker too!

OnlyLittleMissOrganised · 20/01/2019 21:52

Some mortgage brokers are free. They take commission from the mortgage providers. Look for a free one, there are plenty. Do not pay for a mortgage advisor.

PerfectPeony · 20/01/2019 21:56

Yes. Child benefit, tax credits, disability benefits. Affordability and outgoings (such a loans, childcare etc. will all be taken into account). Also maintanance if you are a single parent.

If your income/ deposit is low but you need a larger property. I would suggest a scheme such as help to buy or shared ownership to help get you on the ladder. Smile

Dreamingofkfc · 20/01/2019 21:57

Do you have a deposit? And money for solicitors? It costs more than you realise to buy, plus they work it out so that if interest rates rose you'd be able to afford alot more.

BifsWif · 20/01/2019 21:58

Definitely use a broker.

Which? mortgage brokers were brilliant when we used them.

StartingAgain101 · 20/01/2019 22:02

Phone London and Country. I need to take over our mortgage and needed to find out if ai can borrow enough with universal credit and child benefit with my wages, they said yes and told me how much and have me an AIP. They don't charge either. Don't pay for a broke.

shakypete · 20/01/2019 22:05

Also with Halifax and they counted my child benefit, tax credits and maintenance when calculating affordability.

SaltedIceCream · 20/01/2019 22:13

It’s defiantly possible. :)

Original poster
Keepit · 20/01/2019 22:21

@dreamingofkfc Yes have around £30,000 saved at the moment.

Doing lots of reading on shared ownership and help to buy schemes at the moment.

OP posts:
Pimmsypimms · 22/01/2019 17:49

Definitely agree with a broker!! Ours cost £350 and was worth his weight in gold! Saved us £200 in solicitors fees and found us a great mortgage rate with £500 cashback!