Accord, who are a wholly owned subsidiary of the now merged Yorkshire Building Society and Chelsea Building Society Group have just announced the following (timed today (7th December) at 17:15 hrs GMT):
"Please be advised that from tomorrow 08 December Accord will no longer accept the following forms of income:
Working Family Tax Credit and / or Child Tax Credit and / or Child Benefit".
These days most lender's "Affordability" Calculators will (probably rightly) reduce your net available income if you have children to pay for. However, in return they (currently at least) will then add back in child related benefits.
The only outcome of this type of decision if it is implemented across the industry, will be to further reduce the borrowing capacity of those with children. Those who currently have a mortgage could (in theory) find themselves trapped with their existing lender and unable to get a better deal elsewhere; due to these "moved goalposts".
So the morale of this sad story, maybe is don't wait to review your options, you may have the "rug pulled from under you"!
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