Remortgage affordability question

Phil3822

Coming up to remortgage early next year and I really need to remortgage as current rate is 10.17% due to previous poor credit. My credit file is all clear now. The reason I am posting is because some online mortgage affordability calculators have confused me.

I am not sure if I should include my wifes earnings or not. She is only now starting new employment and our childcare costs are high.

A bit about us. House last valued at £102000 in Feb 2009. Am hoping it's a similar value now. Amount owed at remorgage will be approx £76500. I earn £28930, wife earns £15500. Our childcare costs are approx £700 per month although it is less as we claim childcare vouchers which makes most of our childcare tax free.

Questions:

Do childcare vouchers adversely affect application? I ask this as its a salary sacrifice scheme although my wage slip shows the total amount earned.

Why do the calculators show we would only be able to borrow £50 -60K?

Would we be best excluding the childcare costs and my wifes earnings? Not sure if this is possible or how it works? She would only have 2 wages slips tops when we remortgage anyway.

After general advice on how to go about it. We will be seeing a mortgage broker shortly however I like to get things straight in my mind. We would also like a lifetime tracker.

Thanks all.

Phil3822

Should have added wifes employment is a casual contract for the first year although paid a salary, not per hour.

Phil3822

Should I rephrase the questions? Not sure if they make sense to anyone.

Meeper

If your wife's employment is casual and on a fixed-term contract, an employer would normally have to state that the contract will be renewed at the end and the position will be permanent in order for her income to be taken into account.

With regard to your income, the affordability calculators these days take into account your net monthly pay therefore the sal sac childcare will have an impact in the same way as having a loan would affect your affordability. You have less free income per month, making the mortgage less affordable.

If the childcare vouchers show up on your payslips, which they must do, then there is no way to not declare it, as they will be there for all to see when you submit your supporting documentation.

Phil3822

Many thanks for your response. Needles to say if my wife was not in employment we would not need childcare or the vouchers. Would we be best going for a mortgage based upon my own wage of £28930 and leave my wife's income out of it completely. If my wife pays for the childcare from her wages alone we would then not need to declare the childcare costs if not counting her wages? < This is an assumption so please correct me if wrong.

When using the calculator my wages alone with no outgoings offers up more than putting my plus wifes wages in and childcare. I find this strange considering the childcare costs do not exceed my wifes income.

Hope all this makes sense and again thanks for your response.