Can future changes in circumstances affect mortgage decision?

tamakaede

Hello!  First time posting and just curious to know (as had an argument with the other half about it!)...

Do mortgage lenders take into account any future changes in circumstances?  I know they tend to ask if you are planning on starting a family or expenditure will go up but what about expenditure coming down?!

We are planning on moving house over the next few months - we have nursery costs for our 2.5 year old.  In January we will be eligible for 30 hours free childcare.  This will obviously bring the nursery costs down.  Will the mortgage lenders take this into account?!  I said I didn't think they would and they base it on your current circumstances but the other half says they will take it into account.

We will be getting advise from a Mortgage Advisor when we actually come to looking into mortgages!  Thank you!

cooltt

tamakaede said:

Hello!  First time posting and just curious to know (as had an argument with the other half about it!)...

Do mortgage lenders take into account any future changes in circumstances?  I know they tend to ask if you are planning on starting a family or expenditure will go up but what about expenditure coming down?!

We are planning on moving house over the next few months - we have nursery costs for our 2.5 year old.  In January we will be eligible for 30 hours free childcare.  This will obviously bring the nursery costs down.  Will the mortgage lenders take this into account?!  I said I didn't think they would and they base it on your current circumstances but the other half says they will take it into account.

We will be getting advise from a Mortgage Advisor when we actually come to looking into mortgages!  Thank you!

LOL, yes that's exactly how they do it so don't forget to say your going to be a millionare in 6 months time too!! haha.

tamakaede

@cooltt I thought so - I just wanted to double check     Other half kept (naively) saying that the lenders are human and will take it into consideration!

davidmcn

tamakaede said:

We are planning on moving house over the next few months - we have nursery costs for our 2.5 year old.  In January we will be eligible for 30 hours free childcare.  This will obviously bring the nursery costs down.  Will the mortgage lenders take this into account?!  I said I didn't think they would and they base it on your current circumstances but the other half says they will take it into account.

They may also take into account the likelihood of you having more children. In practice I think they'd go crazy trying to think several moves ahead like that.

Thrugelmir

Lenders will base their decision on the facts at the time of application. Not on future events. Too many variables and unknowns.
Until the transaction is completed. Onus is on you to inform the lender of any material changes to your application.