Childcare costs preventing us from moving

Robbie_Macca

Hi,

The wife and I are looking to move up the housing ladder having bought our modest 2 bed terraced house in 2005. We have a little sprog who is 15 months and in full time Childcare.


Basically we need move space so are looking for a 3 bed, particular before sprog no. 2 appears into our world... Not on the horizon yet I should add.

We earn a decent income between us at 52k, and if we were to sell ours at a realistic price we would have approx £30k deposit after fee for a new home.

However, because of the child care costs of 700 a month which is only 40 quid less than our mortgage, all the online calculators say they wont lend us more than they already do.

Currently with nationwide and are rate drops to 2.5% in feb 13 based on present rates. Currently at 5.69

No loans or credit cards owed.

Should add that we are looking at 200k, so 170k mortgage required with a Ltv of 85%

Are they any mortgages that factor in that your Childcare costs will disappear in a few years? Any suggestions to who might help?

I appreciate that they might not if No. 2 does come along!

princessdon

I can't answer your direct question - but do want to ask if you are using (or if either of your employment allows you to use) childcare vouchers?

This *may* bring down the figures - not sure how it affects the mortgage but at the very least would give you some extra pennies each month,

Darkstar

I had a similar problem with an on-line calculators and child care costs and even phoned to ask if I could quote net of child care vouchers, as we do use them, and they said no it had to be the amount the carer charges. However we could still get the mortgage we wanted so I applied and child care cost never were mentioned during the phone application and when I received their application pack to check there was no where to put these costs. Can't guarantee all lenders will be the same but you will not know till you apply.

However you have to be realistic about this and understand they are just trying to make sure you will be able to pay your mortgage so there is maybe a warning that you could be over stretching yourself.

Our child care cost are about to tumble as we have a good amount saved in CCVs and our little one will start 2.5hrs state funded nursery in September. In September 2014 we will have no more child care cost as he will then be at school and the wife finishes her day at 3:00pm so she can get to the school to collect and I can drop them off.