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mortgage when paying childcare
pamelab21
Posts: 341 Forumite
we are looking to move house this year, on looking at mortgage deals they vary greatly it seems depending on monthly childcare costs and some lenders it seems will take child benefit/tax credits into account and some don't.
Anyway, our childcare costs will drop in Aug as our youngest will be entitled to his 'free' term time hours which will half our monthly bill.
My question is, should we wait until August before looking to move/apply or will any lenders take into account that our outgoings on this will drop in a few months time allowing us to get the ball rolling now?
Anyway, our childcare costs will drop in Aug as our youngest will be entitled to his 'free' term time hours which will half our monthly bill.
My question is, should we wait until August before looking to move/apply or will any lenders take into account that our outgoings on this will drop in a few months time allowing us to get the ball rolling now?
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Comments
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Typically, a lender will take what it can see now in terms of income and outgoings.
It won't accept an increase in income coming in six months, so it also won't take a reduction in outgoings in a similar fashion.
You may want to discuss this with a broker and use a lender which doesn't deduct childcare costs...I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
are there any lenders that disregard childcare as an outgoing?
It doesn't come off our wages in vouchers so do you mean don't tell them? Surely they will see that when we send them our bank statements?
Using online calculators, what we can borrow varies greatly when we put in outgoings (childcare mainly as we have no loans, credit cards or HP) and some seem to allow you to enter tax credits and some don't.
Very confused by it all.
Our current lender who we can apply to port with and then take more did ask for childcare but then they allowed for tax credits but not child benefit? We will have a good LTV of less than 50% so was wondering if we can take advantage of better offers out there....0 -
Yes.
No! I don't mean don't tell them!
A lender chooses to ignore childcare costs. I wouldn't suggest trying to withold information.
I like my career and neither your mortgage, nor anyone else's is worth losing it for...I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
are you able to share which lenders do not take into account childcare costs as an outgoing?0
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Sorry, no.
If another non-broker member on here has recent experience, they may be able to tell you.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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