Formal mortgage offer - adding childcare after

mrbg07546

We had a formal mortgage offer. During the mortgage application we said we are quitting our childcare this month, so it wasn't used negativity against mortgage affordability. However we want to add it back on for a short while.

We are buying a house, which is now with solicter.

Could adding on childcare again now risk the mortgage offer? Could they still ask for wage slips confirming we are still not paying childcare?

betmunch

You need to tell them of any material changes, changes in childcare arrangements would be considered as such.

As for the effect on the mortgage offer I couldn't say as I don't know your situation. Speak to your broker or lender if you went direct

mrbg07546

Thanks.

So that means I will just wait for completion. Before I add childcare back. I presume they won't be bothered after that as we have property and as long as we are making payments?

amnblog

Lenders except you to notify them of any material changes to your circumstances during the application process.

They do not monitor a borrower's circumstances after purchase no ask you to update them.

Lemonsqueezer78

Make no mistake, they would be bothered about the fact you committed mortgage fraud and obtained funds from them by deception. But if you are asking how likely you are to get found out, well that is for you to work out or discover I think.

The terms of the offer explain that this offer is on the basis of the information you give them being true and correct - and it is a requirement of the offer that you notify them of any known impending changes in your financial circumstances. That would include (likely) material changes, such as childcare costs.

Simply knowing this, and not advising them, is committing mortgage fraud. That's the truth of it, I'm afraid. You're not absolved or in the clear because you have an offer. That's all it is - an offer. Nothing is committed or complete until the funds are released and up until that point you are still required to disclose these things to the lender.

On the surface of it, it simply appears that your improved your affordability for application purposes by telling them that a cost you incurred would be going away, when in fact it is not.

I'm not going to go there and suggest this was your plan all along - I don't know you - but don't kid yourself that this is not what it would look like to others, including your mortgage lender.

amnblog

Wow

Our OP is considering putting the kids back into childcare, not murdering them!

betmunch

amnblog wrote: »

Wow

Our OP is considering putting the kids back into childcare, not murdering them!

Must be new to parenthood then!

Lemonsqueezer78

amnblog wrote: »

Wow

Our OP is considering putting the kids back into childcare, not murdering them!

Did someone suggest the OP was doing that?

If your post was levelled at me...well, I make no apologies for telling it like it is

Thrugelmir

amnblog wrote: »

Wow

Our OP is considering putting the kids back into childcare, not murdering them!

I think the point that is being made that contracts of a financial nature are entered into in "Utmost Good Faith".

A minimum standard that requires both the buyer and seller in a transaction to act honestly toward each other and to not mislead or withhold critical information from one another.

In signing a mortgage application this what the potential borrowers agree to do. Though I doubt many bother to read the small print of the declaration of what they are agreeing to do.

bradelyjacc

First of all you should tell material changes, changes in childcare arrangements would be considered as such.Lenders except you to notify them of any material changes to your circumstances during the application process.