How do I prove my child maintenance and UC to get a mortgage?

[SoggyCrackers]

My divorce is almost done and I plan to look for a house to buy (he's buying me out) as soon as it's finalised in the next month or two.

The problem is how do a I get a decision in principle to take my word for it that I'm going to claim UC for 80% of childcare costs, plus child benefit and child maintenance payments from my ex as I won't get them until I have bought my house.

Thanks.

I very much doubt you will OP. I could be wrong but child maintenance won’t be counted and I doubt the rest will either.

have you spoken to a mortgage adviser or broker?

I'm not sure they will take your word for it, you'll need to have it in writing or have it shown on your bank statements. Can child maintenance even be used for mortgages? I thought the reasoning that it isn't included for UC purposes was that it's unreliable so surely the same for mortgages?

I doubt you can include UC until you have claimed it.

So it’s a 2 part issue-

1. Child maintenance, some lenders won’t take this into account as income. Lots now do count it, but don’t take 100% of it into account, an average most take is about 50% into account.

2. Claiming UC for childcare costs- you can’t prove or use that. Mortgage providers go based on the income and situation you have now, that’s all they can go based off. You’d need to start doing this and be able to demonstrate this before you can get a mortgage based on it.

You can apply for all of these while still living under one roof. I don't know if they'd count for a mortgage, but applying for and getting them is really the only way to evidence them.

There are definitely lenders who will consider UC as part of your income. Use a good broker who will be able to find you a deal.

When I applied for my mortgage, I had to provide 3 months of UC statements alongside the other usual proof of income. It will probably spend on your lender though.

Is there a reason why you’re not claiming UC now? When I split with my ex dh, I was able to claim from when we split rather than when everything was finalised. We were still living together so to satisfy UC, I had to let them know that although we were still living under the same roof while I bought my new house, we were living ‘separately’ for example, separate rooms, own cooking/washing etc.

@SoggyCrackers

Are you still living under the same roof as soon to be ex hubby?

Yes still living under the same roof. But once the divorce goes through I will be getting a lump sum for me to use as a deposit on a house and to decorate and furnish it. So I wouldn't be eligible for UC anyway as I'd have "savings" over £16000. Please correct me if I'm wrong.

Child maintenance was included in my mortgage assessment. That's because it very clearly states on the direct debit their dad pays that it's CM and it's the same amount every month

If you're living under the same roof but with completely separate lives then you may be able to claim UC now.

Speak to Help to Claim

i believe you can have asset savings exceeding 16k from a house sale for 24 or 26 weeks. There are a few forums on fb who can help answer and clarify.

Yep, money from a house sale that will be used as a deposit towards another house within 6 months is exempt from the £16k savings rule. I was very clear and wrote in my journal at every point, eg, still under same roof but living separately and when the money from the sale of our house hit my account. I’ve attached their response to me below.

Oh brilliant!

My lender definitely used CM and tax credits in my mortgage affordability but I was living apart from my ex and already claiming both - I just sent the copies of the paperwork to the broker.

My lump sum was excluded for 6 months and it looks like this is still the case.

If the lender allows UC claimed for childcare costs to count as income in the affordability assessment, wouldn't they also count the childcare costs as a monthly expenditure. So they'd cancel each other out?

My CM wasn't included in mortgage application because it was a private agreement and not via CMS or a formal separation agreement. If it was, then it would have counted with rhe lender (YBS). So be careful of this one.

Is he buying you out or are you selling the family home?

@23Shadows even if it cancels eachother out that's better than them only taking into account that I have child care costs and and not that I'd get 80% of that through UC.

@Daisys24 he's buying me out.

The Halifax will take child maintaince into account on private arrangement. I was appalled 6 years ago when Nationwide said they would only lend to me if child maintenance was set under a court order.

Can you claim universal credit now. I believe you can still apply as separated you don’t need to await for a divorce to finalise.