Maternity leave. Baby due next month. Santander takes into account of potential childcare cost

alvin514

Dear all,
I appreciate it if someone can help me with? Currently I am on maternity leave, expecting my first baby due next month. I applied Santander residential mortgage based on my salary gross 50k each year. I use its online mortgage calculator and it states that I may be eligible for £250K loan amount. Therefore, I applied it. However, underwriter raise queries about childcare costs in future. I did not put any figure when applying. To be honest, I do not have any plan to send my child to private nursery school under age 3 since my parents are going to help me when I am working away from home Monday to Friday. I am not sure if Santander will accept this or they will use national average statistics data to recalculate the affordability. If so, I guess loan amount would be dropped down a lot. It means I may lose my dream house. Feel under pressure and depressed.Many thanks for your help in advance.

kingstreet

Explain relatives will provide free childcare and there will be no costs. This should be acceptable.

alvin514

kingstreet said:

Explain relatives will provide free childcare and there will be no costs. This should be acceptable.

Hi @kingstreet thank you for your help! Very helpful. Such a relief. Do you think they will request any further letter from my parents confirming etc? I can provide supporting documents. But I worried about delaying getting offers with so many back and forth queries. Thank you 

chanz4

one thing to take into account they will also alter the figure allowed to take into account extra financial factors of having a child into account

alvin514

chanz4 said:

one thing to take into account they will also alter the figure allowed to take into account extra financial factors of having a child into account

@chanz4 thank you for the information. You mention that bank will account my child as one financial dependent and therefore, it will also affect loan amount. Thank you 

kingstreet

Santander is unlikely to ask for written confirmation from the relatives.

The residential affordability calculator asks for number of dependents, so one should have been included prior to application. Then any childcare cost should be entered so the output is accurate.

https://www.santanderforintermediaries.co.uk/calculators-and-forms/affordability/

If this was my application I would have entered one dependent and noted the lack of childcare costs thereby heading-off such a situation.