Do lenders take tax credits and housing benefit into consideration?

Posted on 21 June 2009

I work full-time but my income is only £12,400 a year. Will it be hard for me to get a mortgage? I do get help from tax credits and housing benefit, I was wondering if I can add those figures to my income when applying for mortgage?

There are a number of mainstream lenders that take into account tax credit and housing benefit allowance and a few that will allow you to add 100% of these to your income before calculating what you can borrow. Without knowing the value of your benefits I am unable to provide you with my guidance on how much you could potentially borrow. My advice would be to speak to an independent mortgage adviser who can go through your current situation in detail and provide you with details on the maximum mortgage available to you.

 

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