What else other than salary count as income (mortgage)?

[Marghe87]

We have a family income of around £110K (two salaries). Based on halifax calculator, we could borrow around £415K, because we have high outgoings with nursery fees.
i do get a bonus on top of that of around £6K although it is not guaranteed (but I get it every year)
is there anytjing else that counts towards income, for example tax credit on childcare or flexible benefits cash from my employer?

Unsure about child tax but I know child benefit did

Tax credits and UC counts as does child benefit. But surely you don't get child tax credits?

we get tax free childcare as £110K is joined income, not individual

Why would you get tax credits on such a big income???

Do you get a car allowance? That’s included.

i would suggest looking at london and country mortgage brokers :)

Do you know what, if you’re having to scrape around for income to bump up the mortgage, don’t do it. Certainly not now. Interest rates probably going up again. Don’t overstretch yourself!

Dividends from shares. Bonus
Income from being a landlord

Tax credits are different to tax free childcare.

@Soontobe60 not sure if we are talking about the same thing but you can get tax free childcare if you both earn less than £100K per year (each)
not sure where you are based but here in London full time childcare is nearly £1900 per month so every little helps

Actually yes, this is true.
If you are trying to stretch it you cannot afford it.

@BitOutOfPractice we’d apply towarfs the end of 2023 and DD won’t be to nursery forever so the high outgoing is only temporary

*in nursery

This is the best advice.

Everyone’s getting confused! OP doesn’t get Working Tax Credits or Child Tax Credits. She uses a salary sacrifice scheme to buy childcare vouchers from her gross salary, before tax is deducted, so doesn’t pay tax on that part of her salary. It slightly reduces the overall tax paid and increases her net pay.

OP, I think they will only be interested in your net pay anyway, so I don’t think you’ll be able to count this as income per se.

I didn’t realise there was a difference. So how does tax free childcare work?
BTW, my DD pays £1500 a month for nursery fees in the North West

You apply to the council for funded places. Set up an account on the government website. You transfer 80% of the child's nursery fee each month to the account and the government tips it up 20% making it tax free.

And the bank know that...

@Soontobe60 you can create an account on gov uk and get a code, give the code to nursery and via that account you can make the monthly payments and get reimbursed for tax up to £2000 per year. She should defjnitely do it if not already doing it!

@Hungrycaterpillarsmummy what do you mean?

bonus & overtime will if you show it's regular.

There's a few ways of getting the childcare tax free. Look it up on the government website @Soontobe60

Wait till dc are in school?

The back know that children are not in nursery forever and the fees are short term but they have to factor it in. Plus the cost of providing for children increase they get older.

How much are you actually wanting to borrow?

You can use the tax saving for school
clubs & holiday clubs usually too.

So you have any other debt? I would have thought you could at least borrow x4. Try a broker