Should mortages providers be allowed to count child benefits as income.

littlefeet

Has the down turn and demise of the Celtic tiger been forgotten? Or has the emergence of mortages providers who allow applicants to count government benefits as income a good idea.

Podge_irl

Child benefit is far more guaranteed income than any wage is. I doubt the few grand a year is putting any family into dangerous mortgage territory.

GerardKeating

https://www.boards.ie/discussion/2058425177/should-mortages-providers-be-allowed-to-count-child-benefits-as-income

Are they actually banned from doing so, or just decided to do this ?

littlefeet

https://www.boards.ie/discussion/comment/123836637#Comment_123836637

That's true but it does raise the level of mortgage they can get.

Nigzcurran

I was able to move my mortgage from a vulture fund shower of ***** to my credit Union last year and using my wife's income as a carer and the child benefit was just about enough to help us get passed.

rino87

https://www.boards.ie/discussion/comment/123836655#Comment_123836655

If someone is using the small amount of children's allowance to push their mortgage amout to the limit they are asking for trouble.

Nigzcurran

https://www.boards.ie/discussion/comment/123837017#Comment_123837017

Im sure you know this but the limits the banks are forced to impose nowadays have a huge amount of wiggle room to try prevent people over stretching themselves. If you pass those tests then you are fully entitled to the mortgage whether you are using child benefit or overtime or whatever

littlefeet

https://www.boards.ie/discussion/comment/123836868#Comment_123836868

Your swoping one mortgage for another that's a different set of circumstances.

Nigzcurran

https://www.boards.ie/discussion/comment/123837237#Comment_123837237

How? I still needed to earn enough to get passed for the loan and the child benefit helped me over the line

GerardKeating

https://www.boards.ie/discussion/comment/123837017#Comment_123837017

Depends, sometimes the mortgage repayment is lower than the rent, but that's an argument the banks don't listen to.

Mrs OBumble

https://www.boards.ie/discussion/comment/123838385#Comment_123838385

Mortgage plus insurance plus maintenance plus management fees needs to be less than rent for the comparison to be valid.

JVince

https://www.boards.ie/discussion/comment/123838302#Comment_123838302

Central Bank allows for up to 15% of mortgages to be outside the normal criteria, but still subject to other criteria.

In a situation where no additional funds were required and you could prove payment history at the higher level and the new facility would make it more affordable, such a scenario can be approved.

On the general child allowance - its give and take. Banks will look at income and expenditure. They will not necessarily offer 4 times income especially if there are 2, 3 or 4 children in the mix. The 4 times is a MAX limit in terms of a standard mortgage application

Economics101

Child benefits are paid because having children imposes financial costs, so from a prudential point of view it would be totally wring to use child benefits to increase borrowing power.