Mortgage Application - Childcare Clarity

Jon_B_2

Hi all,

Just applying for a FTB mortgage through a broker and childcare seems to be a bit of a minefield.

Basic facts are such:

Joint income: £62k/year + fully expensed company car (which I've been told doesn't affect anything)
Mortgage required: £206k with help to buy equity loan and 5% deposit on top (house is £275k)
Existing debt: £253/month loan - just over a year left, £170/month student loan

Basically our childcare costs for a 1yr old are around £650/month. However £325/month of this comes out of our pay before tax. The rest we just pay to our childminder.

How best do we go forward with declaring our childcare costs as there is a tax saving that I've worked out to be around £150/month because it is pre-tax deduction? Our broker is advising £325/month as that is what we pay directly out of our bank account.

This is our second broker as our first one was useless as they would only look at Natwest as apparently they don't childcare into consideration, which I thought was lazy and the interest rate was nearly 1% higher than the rate our current broker reckons we can get.

Thanks,

Jon

ACG

Your broker needs to check with the lender how they would expect it to be entered before submitting the application. That may be £325 or it may be £650 or somewhere in between.

There is no set answer.

Jon_B_2

Thanks ACG.

That appears to suggest our broker has already done as such and is recommending the correct course of action for the lender in question who we have just got a DIP with.