Mortgage with childcare

Mortgagewithchilcare

I am trying to get a mortgage quickly. My parents may be able to (kindly and genuinely) pay for childcare (nursery fees) so that it isn't taken into account in our application as otherwise we won't be able to borrow enough (NatWest doesn't work for us).

Could anyone tell me if this will work and what proof will be needed especially as this will only be happening from now so our previous bank statements will show that we pay for nursery?

Thanks very much.

sal_III

Many lenders don't ask about outgoings (other than servicing other debt) at all. Nationwide definitely doesn't.

They just lend you based on multiples of your income (x4-4.5 usually).

haras_nosirrah

nationwide certainly does ask about childcare costs as do nearly all lenders (apart from natwest as you have identified)

What was the reason natwest wasn't an option? I can think of a couple more who don't count childcare but there aren't many.

haras_nosirrah

with evidence there is a possibility that they would accept a letter signed by parents to confirm they will pay for childcare but it would be down to passing the lenders plausibility checks.

Kidder81

If the lender will say it's unaffordable with childcare then it's unaffordable. Why are you not looking at cheaper properties? Stretching your finances t breaking point when you have children is a very bad idea.

Mortgagewithchilcare

Thanks for the replies.

The valuation with NatWest is lower than the purchase price which is why we have been asked to look at another lender for a different valuation.

What does the plausibility check involve do you know?

Thanks

amnblog

So this problem is not about your childcare, it is primarily about you attempting to overpay for a property.

Even if you do swop Lenders there is no guarantee you will get a higher valuation anyway.

Dont expect a lender to accept that your Parents are going to pick up your childcare costs.

Think again about this property and the pricing.

haras_nosirrah

plausibility is the lender going 'are they just saying parents are going to pay to get past our affordability but in reality the applicants going to pay'

example - parents on pensions at 15k a year each and childcare £800 a month - doubtful they are going to pay and not plausible

parents are on 100k a year - perfectly plausible they will help out with childcare.

sal_III

haras_nosirrah wrote: »

nationwide certainly does ask about childcare costs as do nearly all lenders (apart from natwest as you have identified)

What was the reason natwest wasn't an option? I can think of a couple more who don't count childcare but there aren't many.

They didn't ask me... and i have 2 kids under 5. Maybe i'm special.

haras_nosirrah

sal_III wrote: »

They didn't ask me... and i have 2 kids under 5. Maybe i'm special.

Or someone didn't fill it in correctly or they have taken an amount off your bank statement without needing to ask you as it was obvious. I did two nationwide applications for people yesterday - the box is there and if you put a low amount of childcare in when children have been declared you have to put an explanation as to why the childcare is low. I would get a copy of your application form and see what has been put if your mortgage is still going through as if the childcare hasn't been declared and they spot childcare vouchers on your payslips or entries on your bank statement it could cause you a problem

jennhg88

Natwest or virgin were the lenders I was advised to go with due to our childcare costs.