Best lenders for first-time buyers with childcare costs

CaroMc

Hi there,

My partner and I are looking to buy our first home together, however from next month we will have £9000 nursery fees for our first child when my maternity leave finishes.

We are looking to borrow around £170,000 and have a £30,000 deposit.

Having used a mortgage calculator, we were really disappointed that we couldn't borrow anything like that amount, though when we omitted the nursery fees we obviously could!

It seems really unfair as our rent is more than many mortgage repayments and we have no problem paying it. We will have to tighten belts when our daughter starts nursery, but nothing drastic.

So long story short, any suggestions please, about lenders who would be good to look at in our situation would be much appreciated.

amnblog

A Broker can sort this for you.

jaelato1

I heat Natwest doesn't include childcare cost (Don't quote me) in the affordability calculation but as advised see a broker

CaroMc

Thank you both for your response. Boyfriend had been sceptical about using a broker and wanted to go down the route of saying childcare was being taken care of by the grandparents, which I was very uneasy about. This has convinced him to see a broker.

amnblog

Good

Trying to be 'smart' will trip you both up.

ACG

CaroMc wrote: »

Thank you both for your response. Boyfriend had been sceptical about using a broker and wanted to go down the route of saying childcare was being taken care of by the grandparents, which I was very uneasy about. This has convinced him to see a broker.

Love it! I dont trust a broker with compliance, regulation and insurance coming out of their ears, but I (your boyfriend) will lie and break the law.

Financial Services used to be a bit dodgy, but it has massively cleaned up over the last 10 years.

Natwest can ignore some childcare costs but not others as can other lenders. The devil is in the detail, it is important to get it right otherwise you are potentially risking credit checks/declined applications for no reason - so best to either speak to a broker or the lender directly before doing anything.

jennhg88

We have 900-1000 a month childcare costs and in the middle of a move.
Currently with Santander but if we factored in childcare into some additional borrowing (only about 60k above what is left on current mortgage) then we were way out on what we needed.
We were told Virgin or Natwest were better for us, so we now have an offer with Natwest.

This was all through a broker so definitely seek advice!