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Childcare and affordability
tomatoandcheese
Posts: 21 Forumite
Hi all,
Our mortgage application is currently in with Nationwide and is with the underwriter. We had a mortgage approved for a slightly higher amount a couple of months ago (sale then fell through) so we were fairly confident initially, but it's all taking much longer this time and they have asked for some extra documents, including a bank statement showing child benefit payments, which we have provided.
The issue is that child benefit is paid into our joint account. We also have weekly childcare of £126 per week coming out of that account so that will show up on the statement. Although it goes out of our joint account the childcare is actually paid by my in laws (I know. We are very lucky and they are very generous) but they put money into my husband's account and he then transfers it. Since they haven't asked for his statements it will seem that we are paying the childcare and I'm concerned this will affect affordability. Should we be proactive and ask our broker to explain the situation, plus provide statements to show the money coming in or is it better to wait and see if they query it?
Thanks in advance
Our mortgage application is currently in with Nationwide and is with the underwriter. We had a mortgage approved for a slightly higher amount a couple of months ago (sale then fell through) so we were fairly confident initially, but it's all taking much longer this time and they have asked for some extra documents, including a bank statement showing child benefit payments, which we have provided.
The issue is that child benefit is paid into our joint account. We also have weekly childcare of £126 per week coming out of that account so that will show up on the statement. Although it goes out of our joint account the childcare is actually paid by my in laws (I know. We are very lucky and they are very generous) but they put money into my husband's account and he then transfers it. Since they haven't asked for his statements it will seem that we are paying the childcare and I'm concerned this will affect affordability. Should we be proactive and ask our broker to explain the situation, plus provide statements to show the money coming in or is it better to wait and see if they query it?
Thanks in advance
0
Comments
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The childcare cost should have been taken into account in the affordability calculator and disclosed in the application and you are unlikely to see the payments from the in-laws accepted as they can be stopped any time.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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We went through a broker and had explained the situation to him so hopefully he did put it in then and we don't have anything to worry about. But since he submitted the actual application I don't know for certain what he has put down. Will ask!0
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Don't you have a copy of the application form so you can establish what was submitted?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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No. Should we have? Never really occurred to me but actually would have been useful.
Anyway, not an issue - literally just had a text to say we have been approved! Must learn to worry less. Thank you for your help.0 -
FWIW, within two days of submission of the application, we email;-
factfind
illustration
terms of business
application
suitability letter
to each client to give them the opportunity to ensure everything is as they expected.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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