Concern about affordability & C.S.A! Please help!

cupcake2014

Hi,

Ok so I really hope I have posted this in the correct section and apologies if not.

My partner and I reserved a new build home about a month ago and are due to exchange tomorrow. The property won't be complete until March so our expected legal completion is end of March/beginning of April next year.

We had our Help to Buy application approved and our mortgage offer accepted through Nationwide really quickly and at an amazing rate despite me having a small default on my credit file 4yrs ago which really surprised me. Everything has been pretty much plain sailing until last week, when I got the dreaded call from the C.S.A... I haven't slept since! Basically my former partner and I have had a falling out and so as a result, has cruelly stopped all overnights meaning my payments will now increase by around 30 per month!

The thing is, we dont actually move in until March as it hasn't finished being built yet, so I am worried sick that my affordability will fail when a credit check is done and can see that this has increased. I really don't know what to do?!

Is it worth speaking with our broker or just telling the house builder? Or leave it and see if it picked up? Thing is once we exchange we will be liable to proceed to purchase so we could lose everything, our deposit, the lot!

We really can't afford more deposit or extend the mortgage term any further.

Hoping someone can help me.:(

Thanks

Mike

ACG

CSA doesnt show on credit reports.
Do you bank with nationwide?
Did you declare your child as a financial dependent on the application?

cupcake2014

Thank you for replying.

It's a direct debit so surely that would show? I guess I could cancel the direct debit and just pay over the phone each month?

We initially put it on the application and the broker called us to say C.S.A isn't classed as a 'financial dependent', its only when the child lives with you, so we removed it... The mortgage application just states Child Maintenance and the amount I pay each month.

No I dont bank with Nationwide unfortunately.

cupcake2014

Thank you for replying.

It's a direct debit so surely that would show? I guess I could cancel the direct debit and just pay over the phone each month?

We initially put it on the application and the broker called us to say C.S.A isn't classed as a 'financial dependent', its only when the child lives with you, so we removed it... The mortgage application just states Child Maintenance and the amount I pay each month.

No I dont bank with Nationwide unfortunately.

amnblog

I am surprised your broker said you did not need to declared your CSA payments.

The Nationwide affordability calculator has a section to input maintenance payments.

Your broker will be able to confirm if your affordability still fits with this CSA increase.

cupcake2014

No he didnt say I didnt need to declare CSA payments. My CSA payments are declared. Its the financial dependency that I didnt need to declare as the child does not reside with me.

kingstreet

Yes, you wouldn't treat someone for who you pay maintenance as a dependent, as you would be double-charged the cost of that and the maintenance on top.

This is unlikely to be an issue as the kind of issues which can be picked up are related to credit. No-one is going to be checking your direct debits every month to see if anything changes.

Madbags

As far as I can see from our formal mortgage offer the offer is valid for 6 months. If your circumstances change in that time it's your responsibility to inform them. If you don't think it's going to be a problem to affordability then I would say this is at your own discretion. As others mentioned, I don't think Nationwide are going to look at or request a bank statement from you every month until completion.