We have applied for a bigger mortgage with the same provider as we need to port our existing mortgage to avoid the early repayment charge. It means that we will need to remortgage that part of the mortgage at the end of next year. I'm currently on maternity leave and this hasn't been a problem as I have a letter from my employer confirming arrangements to go back on the same salary etc.
We are lying in our application by saying we will not have any childcare costs next year when I return to work. We're pushing the amount that they will lend us to the limit, not because we can't actually afford it but because the lenders don't like that my husband is self employed and will loan us far less than we can actually afford. The new monthly mortgage payment is only £50 more than we are currently paying because we have been overpaying for the last 2 years. We know exactly how much childcare will cost and have actually budgeted for a £2 an hour increase in price just in case and a loan that my husband is paying will have cleared freeing up £450 a month before we need to remortgage next year.
We've been very lucky that Covid hasn't impacted my husband and he's worked throughout and I'm NHS so my job is secure. Even in the worst case scenario, I could afford the repayments myself if my husband stopped work to stay home with DS so we do know we can afford this mortgage comfortably before anyone wants to tell me that I'm being stupid applying for a mortgage I might not be able to afford... My worry is not that we can't afford it but that we'll be penalised for obviously lying at this stage about having no childcare costs when I go back to work. We were just going to say that our parents circumstances changed so we had to choose paid for childcare instead.
Will we have problems remortgaging because of this?