childcare costs in mortgage application

dave76

When I spoke to my mortgage provider about how much we could borrow for a house move one of the things they wanted was childcare costs. Now I just said what the fees are of £600/month. But this isnt what is actually costs us as we get childcare vouchers which are paid for from gross salary before tax and NI so the actual cost to us is much less, probably about £450. This difference makes a big impact on the providers affordability calculations!

Would I be within my rights to put down the lower figure for the application? The advisor seemed to be saying I had to put down the full amount (I didn't have the actual cost figures at hand) but as that isn't that cost to me that doesn't seem right.

DVardysShadow

The amount to quote is the full net cost to you. The advisor is correctly saying full cost in that you should not conceal any of it, but would be wrong to suggest that you enter the gross cost. IMO.

ACG

Have your advisor speak to an underwriter first. If you check before an application goes in, they may be prepared to look at it and offer the higher amount or somewhere in between.

dave76

cheers, next time I shall go with both numbers prepared - dont want to be accused of hiding anything