Additional Income

Posted on 16 April 2012 by Sharon


I am going through a divorce and do not earn enough to have the existing mortgage on the family home transferred into my name. I therefore need to sell and buy another smaller property, however I will still need another mortgage in my name, are there any lenders who will take extra sources of income into acccount and what are these likely to be? (ie Tax Credits, Child Maintenance, Spousal Maintenance, DLA etc....)?

Sharon

As long as you have an earned income there are lenders who will accept benefit and maintenance payments when calculating how much you can afford to borrow.  As a rule you can add 50% of any additional income to your earned income for benefits and 100% for maintenance payments.  The actual figures will depend on how long you can expect to be in receipt of the benefit and in the case of maintenance also whether or not it is payable by court order.

I believe we can help you and that you would benefit from speaking to one of our independent mortgage advisers.  Please call 0344 346 3672 and tell the consultant the date and title of your question, they will then be able to help you find the right mortgage for your situation.

Peter

Answers provided in response to Ask the experts 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 necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

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

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