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Original poster

New mortgage - Childcare costs

31 replies

LDA123 · 11/08/2023 19:26

So I’m a single Mum with 4 children, working 4 days per week and paying monthly childcare costs.

If I include the costs that I currently pay, it reduces my affordability so much that I can’t afford to buy a house. But on the flip side, they won’t include children benefit or child maintenance income. How is that fair?!

I have to stay with First Direct as in a fixed period.

Anyone been in a similar position?!

OP posts:
Original poster
LDA123 · 12/08/2023 18:05

DelilahBucket · 12/08/2023 09:09

Has nothing been learned recently with people suddenly finding they can't afford to pay their mortgage? I've seen so much trotted out on here over the years with regard to mortgage applications - "don't tell them you're pregnant it's none of their business", "lie about your childcare costs", "lie about this, lie about that". Then something changes like err interest rates and a cost of living crisis and people are complaining they are going to be homeless.
There is a reason affordability checks are in place. Some lenders take into consideration child maintenance and child benefit, some don't. Perhaps look to a broker who can find one that does.

In my case, it’s not a matter of not being able to afford it. I receive £1,000 per month in income for child maintenance and child benefit which more than covers my £200 childcare fees. They just don’t the income into account, only the childcare expense.

OP posts:
Original poster
LDA123 · 12/08/2023 18:06

I am going through a divorce so have to sell the family home and buy a smaller house with a mortgage in my sole name. The mortgage is fixed until 2025 so unless I want to pay a £16,000 penalty, I have to port the mortgage to my new property and stay with the same mortgage company.

OP posts:
Original poster
LDA123 · 12/08/2023 18:08

I’m not increasing my borrowing, I’m halving it. First Direct still go through a full mortgage application though, even if porting mortgage.

OP posts:
LadyLapsang · 12/08/2023 19:19

Looking at it from FD’s point of view, although you are borrowing less, there is more risk because you are the only adult in the household with 4 dependents and if your ex’s situation changes he may not need to pay the same amount of maintenance. Can your mother act as guarantor instead of offering to pay for childcare? Otherwise, I would just get on the phone to FD and explore options.

Unexpectedlysinglemum · 12/08/2023 20:03

LDA123 · 12/08/2023 06:12

That’s what I was thinking I’ll have to do. Problem is, he hates my guts and won’t do anything to make my life easier. I will try though.

Nightmare.

Presumably he wants the house sold though so if this helps you move on quicker hopefully he'd see it in his best interest- I'd frame it in that way to him! Then it might be problem solved

ivegotthisyeah · 15/08/2023 21:33

If your selling the family house and your ex is getting money from the sale of it surely he needs to be paying half of the early repayment fee if you did stop that mortgage. I'd take it off his share

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