Do banks accept state benefits as further income?

Posted on 23 July 2007

Do banks accept state benefits such as child benefit and tax credits as further income?

Denise


Yes,  Accord are generous as they take into account 100% of Working Family Tax Credit, Child Tax Credit and Child Benefit and even gross it up to represent what it would have been as a taxed salary. Norwich and Peterborough also take into account the above, but additionally Incapacity benefit and Disability Living allowance. There are 10 other lenders who take different benefits into account so it would depend which ones you receive. 

This is certainly the sort of mortgage application that would benefit from advice from a broker. If you call Charcol on 0800 358 5560, we have a comprehensive list of which lenders do what.

Katie

Category: State benefits

 

Answers provided in response to Ask Bea are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not neccessarily represent the views, positions, strategies or opinions of Charcol Limited. All comments are made in good faith, and neither Charcol Limited nor Bea will accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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