childrens allowance: can it be considered as 'extra income' for mortgage purposes?

M

magsandtim

Guest
Hi just wondering if we can use our childrens allowance as part of 'any extra salary' as we apply for a mortgage. We have triplets and a 4th child due in september and will be intitled to approx 1000e per month? This itself would cover the mortgage repayments and would allow one of us to stay at home and manage on one wage for the rest of our living?
 
Re: childrens allowance

Here's a laymans view - I guess that if you're going to include the childrens allowance as income, you're also going to have to include the costs of nappies, baby wipes, formula milk, baby food, baby clothes, etc on the other side of the equation - in which case, you'll probably end up worse off than if you had left it out in the first place.
 
Re: childrens allowance

Children allowance is for to be spent on the child not for the parents that is why it was created in the first place.
 
Re: childrens allowance

Unregistered said:
Children allowance is for to be spent on the child not for the parents that is why it was created in the first place.
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Well yes, that is the philosophical reason for it. Interesting also that it is normally only payable to the mother of the child. This was to prevent it from becoming a drinking/gambling fund back in the bad old days when men stayed well away from childrearing duties and women were considered more likely to put the kids first.
 
I consider this money for my son to be there to feed and clothe him. However we are lucky enough to be in a fairly secure financial position so the money is directed into a savings account and is difficult to get at, 60 days notice. If it accumilates intoa sum to help him through college, a gap year, or a house deposit then this would be a big bonus!
 
magsandtim: I'm sure that most lenders will be happy to have Child Benefit factored in under 'other income' to any calculations with regard to securing a mortgage. They simply want to lend the money but have the paperwork look right in case they have to justify it at some point.
 
No, lenders will not take any social welfare or other State benefits into account when calculating how much they will lend. Sorry.

Sarah

www.rea.ie
 
Unregistered said:
No, lenders will not take any social welfare or other State benefits into account when calculating how much they will lend. Sorry.
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That may be technically correct but my experience is that the lenders are happy to include all income.
 
Children allowance is for to be spent on the child not for the parents that is why it was created in the first place.
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I'm sorry, but how is it if the parents of the children plan to use the money for a decent roof over the children's head and also to enable the Mother to stay at home not for the benefit of the children?
 
Sarah is right. If the whole deal hinges on the CAll, its kind of marginal really. Never seen the CAll taken into calcs.
 
Interesting though isn't it, child maintenance (which is not guaranteed - regardless of court orders) is included as income, where Child Benefit (which is guaranteed) is not....
 
Thats a different situation as the child support comes from one of the other parents; is usually treated as a deduction from their taxable income;

If there was other earnings, this would be looked at as a last resort. Have not seen too many of those.
 
Not following you there WizardDr?

The discussion was on what can be included as income. A parent in receipt of Child Maint. can declare it as income when applying for a loan/mortgage and it will be accepted by lenders as income; regardless of the fact that as a source of income it is quite unreliable.

Where as Child Benefit (payment of which is guaranteed and is not means tested or subject to court orders) cannot be included as income.

A parent who pays Child maint. does not have to declare it, it is not a borrowing, it does not appear in any credit bureau listing, it is paid from taxable income and no tax relief is available.
 
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