When to get an AIP

KaratePigeon

Hello,
Will I get asked what my childcare costs are when determining affordability for a mortgage? At the moment we are paying about £1k/month on nursery fees but child will be starting school in September so will have a lot more available to pay mortgage then.

Keen to move house this summer, at the moment I don't think we'd pass affordability if they ask about childcare costs, but think we'd be ok if they asked the same question in September. Will they take this into account if I get an AIP now, or is it only based on your current circumstances?

Thanks

amnblog

You can move this summer.

Lenders understand that costs reduce when school starts.

Some lenders ignore childcare costs for affordability purposes in any case.

Find a decent mortgage broker.

KaratePigeon

Ok, that's good to know, thanks. Our current mortgage is with HSBC, we have most of it on a tracker (0.99 above base rate) which we ported over from our last property, they said we had to get a separate mortgage for the extra borrowing, which we had on a 5 year fix, it's recently ended and gone to variable rate which I haven't bothered getting a new deal as didn't want to be tied to anything if we move house. Am thinking of porting the tracker mortgage again, but no idea what to do with the rest, will probably stay with HSBC and see what new deal they will give me. (can you even use 2 different lenders on the same property or would I have to use HSBC for both?) As far as I'm aware brokers don't deal with HSBC so can't ask one?

ACG

You could but it would be a secured loan as the extra which will probably make it all more expensive.

You can't take a normal mortgage with hsbc and then another normal mortgage with a different bank.

amnblog

Make sure HSBC will give you what you need to move before you lock in with them.