Penalised for old childcare

SameOldRoundabout

I did post about this before, but can’t find the thread to update. Basically until December we had a hefty childcare bill, and claimed tax credits accordingly. My LO has since turned 3 and as of the beginning of January is in the free 30 hours childcare offer.

Lender has taken childcare into account and won’t lend enough, despite the childcare end date being on the tax credits statement. They’ve also had emails sent over from the council proving we are in the scheme, and also our nursery confirming his place is now fully funded with no top ups. They’ve come back now and said the only possibly proof they’ll accept is a new updated tax credits statement. Ridiculous. The lady at HMRC was very helpful but said new letters are only sent out after a change of circumstance, so she’s tried to add £1 to my expected income in order to generate a new statement which she “hopes” will show we don’t claim childcare at all.

I find this so frustrating. They’ve got proof from both a council and the provider that we don’t pay, the tax credits statement has the end date of childcare on it and still we are penalised. I’m so worried we’ll lose our sale and purchase.

haras_nosirrah

Which lender is this? A lot will ignore a commitment that has stopped or is stopping in the next 3 months.
Have you gone via a broker or direct to lender

SameOldRoundabout

It’s Nationwide. We’ve gone via a financial advisor, we were sticking to NW as they are our current lender and it’d save us a few thousand in exit fees. FA was ringing round lenders today to try and find someone whose underwriters wouldn’t throw back the same issue but as far as I know nothing was found. It was afternoon before this happened though so time was not on our side.

I’m not sure whether to try and wait for a letter or jump ship and go elsewhere. I’m happy to pay the exit fee, but not if we end up in the same position again.

haras_nosirrah

That suprises me - nationwide are usually good with thing like that

SameOldRoundabout

Yes it’s a shocker. We originally went with them because when we first bought we had an unusual set of income streams that few lenders would take. We thought this time it’d be straight forward but have fallen over a computer-says-no exercise despite providing them with proof. If only they’d said 8 days ago that that was the only acceptable proof we may well have had it by now. The house we are buying has previously fallen through due to buyers being unable to get a mortgage and I’m scared they’ll think we’re in the same boat, other offers were on the table, what if they ditch us and go with someone else? It’s only 2 weeks since application so I’m hoping we have a little more time to sort something.

Nemo72

it sounds a bit scary...