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Mortgage Advisor & Director
Can you get a mortgage with child tax credit income?
If you receive child tax credits, you might be wondering if this income will be taken into account by lenders when it comes to a mortgage application.
The answer is yes; there are lenders that will take into account child tax credits and other benefits into their affordability calculation.
However, as a non-standard income, the pool of willing lenders is limited and you may find that not all of them will accept 100% of the child tax credit income into their calculation.
Your best chances of mortgage approval are using a competent and experienced broker. Not only will they be able to recommend the most suitable lenders for child tax credits and other benefit income, but they'll also boost your chances of approval and find the right mortgage for you. At Teito, our team of expert advisors have helped many people like you to find their perfect mortgage. Get started comparing deals now, and we promise to make your mortgage journey as stress-free as possible!
How to improve your chances of approval
There are several steps you can take to boost your chances of mortgage approval.
Check your credit record and make improvements if needed.
Lenders will be concerned with your reliability as a borrower. It's important that you check your credit report with the major agencies, understand the factors that are affecting your score, and make any improvements if required. This may involve applying to correct errors. By showing potential lenders that you can manage credit sensibly and make repayments on time, you will be increasing your chances of approval for a mortgage. Be aware that improvements to your credit record can take time, so it's worthwhile planning to make changes a few months in advance.
Consider applicable government schemes
There are a range of options available to help people attain homeownership in the UK. You may find that if you are in receipt of certain benefits, such as child tax credits, you become eligible for help with getting on the property ladder. Applicable schemes to consider include Help to Buy: Shared Ownership, Right to Buy and Acquire, and you may even qualify for help towards your mortgage interest for existing homeowners.
Save more towards a deposit
If you can, it's worthwhile contributing more towards a deposit to widen the pool of available lenders and improve your mortgage options.
Learn more and apply now
At Teito, as a whole-of-market broker, we work with hundreds of lenders offering 20,000+ mortgage deals, including those for people on child tax credits. We've streamlined the mortgage process, eliminating unnecessary and time-consuming steps, and the end result is stress-free and straightforward. Our team has helped thousands of people find their perfect deal. With Teito, you can start comparing deals within minutes!
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Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.
Last updated 28 February 2024