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We already have a mortgage of 120,000 and we r struggling so want to take a lesser mortgage out and buy a cheaper house,my husband is a taxi driver and i work part time so r total earnings last tax year were 16,000. yet my tax credits came to 12,000! is there a mortgage we could get does anyone know or r we going to loose r current house!any advice would be great thanks.

5 Thoughts on When applying for a mortgage would they take my tax credits into account?
  1. Reply
    April 12, 2012 at 2:16 am

    They don’t take into account your tax credit, you are best seeing an financial adviser, you will struggle to get mortgage unless you do part rent part buy even then might be tough on that wage, go and see a financial adviser as they are the best to advise, you can do mortgage calculator online at most banks etc… If you have some savings and some collateral in your current house there maybe a way around things but you as I said speak to professionals.

  2. Reply
    April 12, 2012 at 3:00 am

    Was there some creative accounting in play to get a mortgage that size on an income in a low range like that?

    Try a mortgage broker and talk to the Citizens Advice Bureau about help with debt management and help with your mortgage company. Not promising anything but they have an excellent record with this type of thing and may be able to help you negotiate with them.

    Your tax credits are very very high a well, hopefully they can stand up to close scrutiny if need be.

  3. Reply
    April 12, 2012 at 3:19 am

    I doubt it as these are not a guaranteed income, they are issued a year at a time and who knows whether there will be such a thing in 2 or 3 years time. The government could pull the rug on them at any time. Remember, sa far as benefits go, Tax Credits are a relatively new one.

  4. Reply
    James Morley
    April 12, 2012 at 4:05 am

    Thats a tricky question, there are too many variables when it comes to mortgages

  5. Reply
    Bill Galloway
    April 12, 2012 at 4:20 am

    Qualifying for a mortage these days requiers a 620/640 min credit score. No outstanding judgments, good work history with a debt to income ratio of no more than 45% in most cases. Your income will be averaged over the last 2 years and if self employed they will go off your last 2 tax returns. If you can meet these requierments you should be good to go.

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