Can I get a mortgage using tax credits and csa payments.?

Question

Can I get a mortgage using tax credits and csa payments.?

Answer 1

Yes, IF the CSA payments are regular and not disputed .. and the Mortgage period does not exceed the 'life-time' of the CSA payments (this may mean you can only get eg. a 15 yr. or less mortgage)

Even so, the vast majority of Mortgage companies will insist you have some-one else to act as a 'Guarantor' (i.e. someone who will sign to 'guarantee' to pay the Mortgage in the event you fail to do so) = this would typically be a relative (eg. your parents or siblings).

NB> as with any Mortgage, the maximum you will be offered is a multiple of your annual income .. typically 4 times .. and the bigger the 'deposit' you have the more likely you are to get the mortgage ... again, a relative may help ...

Answer 2

It will depend on the bank

You should seek proper independent financial advise before doing this. If you rely soley on benefit income then you are unlikely to get a mortgage, if it is just part then some banks may lend to you on that basis.

You need to be very careful and borrowing based on Tax Credits and CSA payments may be a bad idea as these payment are subject to changes of circumstances and may change leaving you with financial difficulties

Answer 3

If you're applying for a mortgage, then yes, they will be factored in when determining how much you may borrow.

But no, you cannot get a mortgage if this is your SOLE income - you obviously need to have income coming in from a job in addition to this.