Benefit and Tax Credit income

Posted on 22 March 2010 by Stel


I am 3yrs seperated from my partner, we have a joint mortgage and two children who live with me at the family home.  I have a permanent part time job and receive working tax credits and child tax credits as well as maintenance by means of a deductions from earnings order.  How likely is it that my mortgage lender will take these into account if I apply for the mortgage to be transferred into my name only?

Stel

The answer to this depends very much on who your mortgage lender is. The majority will take all of the Working Families Tax Credit (WFTC) and Child Tax Credit (CTC). Again the majority of lenders will consider the maintenance payments, but the norm is to only take 50% of these into account.

If your current lender will not take these into account or only considers a reduced amount towards your total income figure, then it may well be possible to look towards moving your mortgage to another lender. In this situation I recommend that you speak to an independent mortgage adviser who will know which lenders to approach.

Peter

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