Fixed term contract and childcare costs affecting mortgage application

Lydialou

My husband and I have a help to buy loan as part of our mortgage which we are going to have to start paying interest on next year. We went to the bank today with a view of remortgaging to take the loan into our mortgage.

I am about to start a new job but it’s only a 12 month contract, this can’t be considered as a part of the mortgage application which is fine. However, as a result of me working this new job our childcare costs will be quite considerable and those do have to be included in the mortgage application. This is despite the childcare costs being directly linked to my new job and if I wasn’t working the job we wouldn’t have these cost.

So basically the mortgage application is showing us as being £1k worse off a month than we actually are and we wouldn’t be able to afford our existing mortgage let alone take in the help to buy loan also. The crazy thing is if I didn’t take this new job the childcare costs wouldn’t exist and we could take out the amount of mortgage we need.

We are extremely frustrated by this and have been to two lenders who have both told us the same.

We could just sit tight with our current mortgage, pay the interest on our help to buy loan for a few months then reapply when my fixed term job ends. However, with uncertainty over house prices we’d prefer to take the help to buy loan into our mortgage now if it’s in any way possible.

If anyone can offer any advice it would be much appreciated.

LRmortgage

Stop going to individual banks, go to a Broker.
They will know which lenders will find your situation acceptable.

amnblog

Why the rush to buy back the equity loan? If there is ‘uncertainty’, and prices are static or likely to fall, it is most likely less expensive to pay the Help to Buy fees.