Will this help offer? 25 May 2019 at 8:57AM edited 30 November -1 at 1:00AM in Mortgages & Endowments 10 replies 869 views

GavL

Hope someone can shed some light.
Having gone to underwriters, I was advised that maximum they were prepared to lend was £17k short of what I need! It’s due to the old childcare voucher scheme which I’m still part of as my youngest still attends nursery, just twice a week alongside a car loan I have.
My broker advised if I got rid of one I’d be back to where I need to be. So I’ve dramatically reduced the voucher contribution by almost £200 a month. This has been confirmed in writing by employers and I can “prove” come next payslip. It’s back with the underwriter now but any experience as to what effect this change will have would be appreciated. I’m in for a long wait with the bank holiday weekend ! TIA.

ACG

I am surprised £200 is making £17k different. I would expect a drop of £200 a month to be closer to £10-12k but if you are paying £200 less on child care vouchers, will you not now be paying an extra £200 (if not more) in childcare directly?

GavL

Apparently it’s because of this and the loan combined is more than the mortgage payment.
I’m doing the mortgage myself as hubby just became self employed so not accounts but he’ll be taking on the balance

amnblog

This sounds like one that will, with many Lenders, need to be evidenced with the next payslip showing the change. What has your Broker said?

GavL

I can show it on my next wage slip, hoping to get that a bit earlier as payday is 6th so it feels a lifetime away! He said that if we got rid of the loan or the vouchers it’d take us to where we need to be....that being said having this hurdle just now is making me nervous. If it doesn’t fill the full gap I’ll need to find a way to bridge it.
Also, do they not take into consideration that the mortgage payment is £200 less than rent? Aware it’s not as simple as that. I can afford everything as is with the higher rent so find it all complicated.

Thrugelmir

GavL wrote: »

I’m doing the mortgage myself as hubby just became self employed so not accounts but he’ll be taking on the balance

Presumably you'll be financially supporting him. While he gets the business up and running. Has the lender factored this into account as well.

GavL

They’ve not taken any of his income/situation into the equation. They have seen regular transfers from him to me (bills) and no questions on that.

GavL

He doesn’t need financial support - the income is regular

AnotherJoe

I guess once you get the mortgage (good luck) and are in the house (dont do anything before that !) you can add them back on anyway? Presumably overall you are better off with them?

GavL

I could do in time but it was due to change anyway as given his age he’s not entitled to some free sessions.

GavL

Now entitled, sorry.