Childcare Costs

DanielACB

Hi all. I’m looking to sell my current house and move to a larger property which better accommodates us as a family. I will be doing a sole application and have a question around childcare costs which I’d love some input or a steer on please! 

Currently, childcare invoices are in my name and payed from my account, however my partner pays me the full cost of this and can be proven via bank statements. If the childcare costs in this case are factored into the affordability, I fall short of the property we are looking at (partner not in a position to join application due to outstanding default on CR from 5 years ago, long story, before we met!). Is a lender likely to take this into account and remove the cost from affordability (about a 100k affordbaikity swing!!).

The other option is to move the invoices to my partners name and she pays going forward (should have done this before, I know!) but cautious it will still be on my statements for past 3 months.

Any advice would be really appreciated please!

ACG

A 5 year old default will not prevent you doing a joint mortgage. 
It might (not necessarily) increase the rates slightly but not massively. 

Speak to a broker. 

But to answer your actual question, its possible you might get a lender to ignore the childcare costs. It wont be for every lender though. 

DanielACB

@ACG thanks! In your experience what lender would typical not include childcare costs just to be safe please? Or are you referring to them turning a blind eye to this?

ACG

I think you should speak to a broker. 

Would it not make more sense to go down the route of doing it jointly? It offers everyone (including your child) more security incase something were to happen to you. There are lots of pitfalls of doing it as a sole application, where the deposit came from, who will reside in the property etc. 

I think the route you are looking at should be the last resort option personally, but obviously I do not have all the facts. 

kingstreet

There is no longer a lender which ignores childcare costs but you may find a lender willing to accept you don't pay them; or you pay them and get them back. This is where a broker will run down the sourcing report from best deal on, to find the lender who will do this by calling each one individually.