Dependant affecting mortgage

BoGoF

So the fact that we generally hear that is costs tens of thousands of pounds to raise a child to age 16 is fiction then?

ViolaLass

BoGoF wrote: »

So the fact that we generally hear that is costs tens of thousands of pounds to raise a child to age 16 is fiction then?

A lot of it probably has to do with reduced earnings and/or child care costs, which the poster had already accounted for.

bclark

BoGoF wrote: »

So the fact that we generally hear that is costs tens of thousands of pounds to raise a child to age 16 is fiction then?

Yes I believe a lot of it is very one sided and usually to get an interesting headline. It tends to assume that everyone will have nursery costs etc, often includes school fees and factors in lost earnings.

It often doesn't net off the fact that as parents you don't tend to go out on the town anymore, don't have flash holidays etc.

My general point was how arbitrary it seems, we are all different.

BoGoF

But couples without children can also give up the nights out/holidays for their dream home but then wont have the added expense of children.

Yes we are all individual but take 2 comparable couples who do not go out/take holidays etc. The couple with kids are going to spend more.

SouthCoast

If the relationship breaks down, check out the CSA costs.

bclark

BoGoF wrote: »

But couples without children can also give up the nights out/holidays for their dream home but then wont have the added expense of children.

Yes we are all individual but take 2 comparable couples who do not go out/take holidays etc. The couple with kids are going to spend more.

Yes there will be couples that are the same, my point is actual affordability of individuals should be considered, not an arbitrary 25% less.

bclark

SouthCoast wrote: »

If the relationship breaks down, check out the CSA costs.

That's a total change of circumstances though. By the same approach mortgage companies should factor in the fact that so many people will gain dependants during the life of the mortgage.

Not saying they should, just pointing out what a silly comment that is.

horngkai

_Andy_ wrote: »

Another fraud is cool thread. Whoop whoop

Damn those nasty mortgage companies making you state the truth!!

The reason I asked is because I thought its a valid reason not to include dependant if they are being supplied for by someone not in the mortgage application. Sorry if you feel that I am trying to commit fraud which was not the case.

Thrugelmir

bclark wrote: »

I understand that the mortgage companies need to generalise a bit but it's frustrating that they just arbitrarily say that we can't afford as much because we have a child.

Not only people with children say that can afford more. Those without do as well. Normally because they underestimate the true cost and expense of running a house. Likewise with children. Better to borrow sensibly and take steps up the ladder. Than over commit and increase the chances of encountering problems in the future.

Mortgage lenders have years of data and thousands of applications on which to base their generalisations.