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Minimum Wage And Mortgages

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Should someone on minimum wage (£5.73) be able to take on a mortgage?

It's only £11024.52 a year on a 37 hr week.

not a lot at all.

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Should someone on minimum wage (£5.73) be able to take on a mortgage?

It's only £11024.52 a year on a 37 hr week.

not a lot at all.

Depends on the size of the mortgage really.

If it's a £30k mortgage then it's not an issue. But of course, it'll be a few years yet before houses are that cheap again ;)

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Should someone on minimum wage (£5.73) be able to take on a mortgage?

It's only £11024.52 a year on a 37 hr week.

not a lot at all.

When we see average house prices at 33k (i.e affordable for all) then it will be just fine. :ph34r:

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I'm not sure the Boomboom twit will be happy with you breaking his monopoly on starting minimum wage threads.

If it wasn't an unalterable fact that house prices only ever go up, you might briefly think, perhaps, property is over-priced.

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Should someone on minimum wage (£5.73) be able to take on a mortgage?

It's only £11024.52 a year on a 37 hr week.

not a lot at all.

Since we expect the landlord to make some sort of a profit(10% used to be normal) or at least break even, in a sane world, buying would always be cheaper than renting.

Given that someone who works should have somewhere to live, a mortgage makes sense.

(obviously not now, but eventually the Harry Potter economics will end)

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Should someone on minimum wage (£5.73) be able to take on a mortgage?

It's only £11024.52 a year on a 37 hr week.

not a lot at all.

Jesus, how many times...

TAX CREDITS!!!

Nobody with a kids and a job only gets minimum wage after tax credits, they get the equivalent of over twice the minimum wage with 2 children.

This is the reason that entry level houses wont fall as far as they should.

Edited by ItsColdUpHere

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Jesus, how many times...

TAX CREDITS!!!

Nobody with a kids and a job only gets minimum wage after tax credits, they get the equivalent of over twice the minimum wage with 2 children.

What??!!

Do those of us not on minimum wage get this?

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tax credits, benefits and any other payments are included in mortgage calculations. If you are on Min wage with a couple of kids you will be offered a bigger mortgage because of the extra income. If you play the system well, the min wage is equiv to much much more..

Can I get a mortgage with tax credits and CSA income?

http://uk.answers.yahoo.com/question/index...16113704AAT8Ztm

Edited by moosetea

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What??!!

Do those of us not on minimum wage get this?

Tax credit withdrawal is stupidly steep, the equivalent of a 70% tax rate.

So once you're on minimum wage and tax credits, a 12K a year pay rise (so doubling your wages) results in only £300 a month extra take home pay.

Add in the fact that kids get free school meals when the family is on minimum wage an you're looking at about £220 a month extra take home for a DOUBLING of the pre tax wage.

Having just been informed I'm losing my contract, I've looked into it so its no longer just theoretical, and I'm not worried at all.

The wife will work 16 hours a week minimum wage (as she's just started to do in preperation) and we'll get £1500 a month after tax credits and save another £100 on school meals. I'll also save the £140 a month I currently spend on fuel and keeping a second car on the road to get to work.

So thats the equivalent of £1740 in the hand we're "making".

To get £1740 in the hand a month you need to be paid £27.3K.

So thats the equivalent of £32 an hour my wife will be getting.

Minimum wage my a**e.

:-)

The bad news is I've got to last until the start of April, as I've already "over earned" this tax year to get tax credits...

Edited by ItsColdUpHere

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But, doesn't that just encourage people on minimum wage to not bother to move up? Why take on all the extra hasle and responsibility of a promotion when your exyta take home pay will be hardly anything?

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But, doesn't that just encourage people on minimum wage to not bother to move up? Why take on all the extra hasle and responsibility of a promotion when your exyta take home pay will be hardly anything?

Re: But, doesn't that just encourage people on minimum wage to not bother to move up?

Why take on all the extra hasle and responsibility of a promotion when your exyta take home pay will be hardly anything?

Spot on.

When popping out a sprog makes you £3K a year better off after tax, the same as £5 an hour on your wage, why bother working harder.

Tax credits are basically socialism by the back door.

Edited by ItsColdUpHere

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Should someone on minimum wage (£5.73) be able to take on a mortgage?

It's only £11024.52 a year on a 37 hr week.

not a lot at all.

What they need is a liar loan.

We need more liar loans obviously.

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But, doesn't that just encourage people on minimum wage to not bother to move up? Why take on all the extra hasle and responsibility of a promotion when your exyta take home pay will be hardly anything?

Maybe the resposibility of raising kids should be enough

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tax credits, benefits and any other payments are included in mortgage calculations. If you are on Min wage with a couple of kids you will be offered a bigger mortgage because of the extra income. If you play the system well, the min wage is equiv to much much more..

Can I get a mortgage with tax credits and CSA income?

http://uk.answers.yahoo.com/question/index...16113704AAT8Ztm

that answer was amended in late 2007:

It will depend on the bank, but of course you can.

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

You needn't be very careful and borrowing based on Tax Credits and CSA payments just cant be a bad idea as these payment are subject to changes of circumstances and what the hell, you can just remortgage or sell up and retire in a year or two.

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that answer was amended in late 2007:

It will depend on the bank, but of course you can.

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

You needn't be very careful and borrowing based on Tax Credits and CSA payments just cant be a bad idea as these payment are subject to changes of circumstances and what the hell, you can just remortgage or sell up and retire in a year or two.

Anybody getting tax credits actually has an incredibly stable income, because any pay increase is taxed and clawed back and any pay decrease is made up for with extra tax credits.

(Subject of course to tax credits themselves not being removed by a future government)

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Assuming 1 child and child care costs of £100 a week I did the calculate at entitled.to

Period:06/04/2009-05/04/2010 annual £ weekly £

Initial Tax Credit award for period: £9,678.85 £185.62

Working Tax Credit: £6,893.90 £132.21

Child Tax Credit: £2,784.95 £53.41

Final Tax Credit award for period: £9,678.85 £185.62

Working Tax Credit: £6,893.90 £132.21

Child Tax Credit award: £2,784.95 £53.41

Income from Working Tax Credit (weekly amount currently received): £ 132.21

Income from Child Tax Credit (weekly amount currently received): £ 53.41

And then LHA (assuing a 30 contribution by the absent parent)

Entitlement per year per week notes

Means-tested income entitlements

Tax Credits-Initial Tax Credit £9,678.85 £185.62

Tax Credits £9,678.85 £185.62 Working tax credit and child tax credit.

Means-tested bill reductions

Housing Benefit £2,325.92 £44.61 We have calculated your entitlement using the Local Housing Allowance rate you entered. LHA rates change every month so please return to the calculator regularly to check your entitlement. Our calculation is based on you receiving £132.21 from working tax credit and an Income of £53.41 from child tax credit.

Total Entitlements £12,004.77 £230.23 weekly

So on minimum wage weekly income of 212.01

You're entitled to £230.23 weekly ontop.

Which doubles your income and a bit.

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Assuming 1 child and child care costs of £100 a week I did the calculate at entitled.to

Period:06/04/2009-05/04/2010 annual £ weekly £

Initial Tax Credit award for period: £9,678.85 £185.62

Working Tax Credit: £6,893.90 £132.21

Child Tax Credit: £2,784.95 £53.41

Final Tax Credit award for period: £9,678.85 £185.62

Working Tax Credit: £6,893.90 £132.21

Child Tax Credit award: £2,784.95 £53.41

Income from Working Tax Credit (weekly amount currently received): £ 132.21

Income from Child Tax Credit (weekly amount currently received): £ 53.41

And then LHA (assuing a 30 contribution by the absent parent)

Entitlement per year per week notes

Means-tested income entitlements

Tax Credits-Initial Tax Credit £9,678.85 £185.62

Tax Credits £9,678.85 £185.62 Working tax credit and child tax credit.

Means-tested bill reductions

Housing Benefit £2,325.92 £44.61 We have calculated your entitlement using the Local Housing Allowance rate you entered. LHA rates change every month so please return to the calculator regularly to check your entitlement. Our calculation is based on you receiving £132.21 from working tax credit and an Income of £53.41 from child tax credit.

Total Entitlements £12,004.77 £230.23 weekly

So on minimum wage weekly income of 212.01

You're entitled to £230.23 weekly ontop.

Which doubles your income and a bit.

Thank you.

I normaly just get called a liar on here when I state FACTS about the incredible generousity of the tax credit system.

And your example is 1 child - with 3 (as I have) the numbers just get BIG.

A couple my wife knows have 9 children and get £32,000 a year in tax credits and child allowance.

The husband works as a taxi driver so he can claim to earn on the minimum amount to claim the maximum tax credits (he obviously doesn't declare the rest), but I reckon they TAKE HOME about 4K a month including his work.

He'd have to have a job paying 76K a year to get that standard of living if it wasn't for tax credits.

You've got to laugh :-)

Edited by ItsColdUpHere

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Thank you.

I normaly just get called a liar on here when I state FACTS about the incredible generousity of the tax credit system.

And your example is 1 child - with 3 (as I have) the numbers just get BIG.

you wait till they grow up to about age 10....then the COSTS get big too.

still, shame on the childless couple.

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Thank you.

I normaly just get called a liar on here when I state FACTS about the incredible generousity of the tax credit system.

And your example is 1 child - with 3 (as I have) the numbers just get BIG.

I might go through and add in 3 kids later

Is there a limit to when it stops increasing (ie: max no of kids?)

Not that I'd have more kids just to claim benefits...

F%%$% ME!! The number of children goes up to 10!

For 10 kids - 120 childcare a week (max you can put in is 999)

Period:06/04/2009-05/04/2010 annual £ weekly £

Initial Tax Credit award for period: £30,647.90 £587.77

Working Tax Credit: £7,725.90 £148.17

Child Tax Credit: £22,922.00 £439.60

Final Tax Credit award for period: £30,647.90 £587.77

Working Tax Credit: £7,725.90 £148.17

Child Tax Credit award: £22,922.00 £439.60

So £587.77 a week...

Edited by SarahBell

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you wait till they grow up to about age 10....then the COSTS get big too.

still, shame on the childless couple.

Mine are 11, 12 and 14.

But the costs are actually immaterial - you'd have them whether tax credits existed or not.

The simple fact is that tax credits MASSIVELY increase the real incomes for poor people with kids.

Re: still, shame on the childless couple.

Yep, childless single people and couples have been totally overlooked by this government.

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Re: But, doesn't that just encourage people on minimum wage to not bother to move up?

Why take on all the extra hasle and responsibility of a promotion when your exyta take home pay will be hardly anything?

Spot on.

When popping out a sprog makes you £3K a year better off after tax, the same as £5 an hour on your wage, why bother working harder.

Tax credits are basically socialism by the back door.

+1

We've a young family, and I'm amazed at the money the government are putting into our bank account. I'm a stay at home mum and OH is a teacher we get another £2k in child benefit and child tax credits!!!! Oh and I've just been given another £190 cash for getting pregnant again!!!!!! WRONG!!! WRONG!!!! WRONG!!!!!!

http://www.direct.gov.uk/en/Nl1/Newsroom/DG_174119

I bloody wouldn;t have kids if we couldn;t afford them!

Needless to say ALL of this 'free' money goes straight into a tax-free savings account, because boy oh boy aren;t our kids gonna need it when they're older to pay back to the government.

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I might go through and add in 3 kids later

Is there a limit to when it stops increasing (ie: max no of kids?)

Not that I'd have more kids just to claim benefits...

F%%$% ME!! The number of children goes up to 10!

For 10 kids - 120 childcare a week (max you can put in is 999)

Period:06/04/2009-05/04/2010 annual £ weekly £

Initial Tax Credit award for period: £30,647.90 £587.77

Working Tax Credit: £7,725.90 £148.17

Child Tax Credit: £22,922.00 £439.60

Final Tax Credit award for period: £30,647.90 £587.77

Working Tax Credit: £7,725.90 £148.17

Child Tax Credit award: £22,922.00 £439.60

So £587.77 a week...

You couldn't make it up could you?

This is quite refreshing, having somebody actually checking the facts rather than just reacting with "THAT CAN'T BE TRUE SO IT ISN'T!!!"

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