Childcare costs reduce the amount you can borrow
Research by Trinity Financial shows how one child and childcare costs can significantly reduce the amount you can borrow when applying for a mortgage.
Aaron Strutt, a broker at Trinity Financial, says: "Many parents will not be aware that having children will reduce the amount of money they can borrow or that lenders take childcare costs into consideration.
"A single parent earning £50,000 each year with no personal debts, maybe able to borrow up to £226,000 with one large building society " but when a child and £1,000 a month care costs are factored in " the amount they can borrow drops to £50,500.
Using the same financial circumstances with NatWest's mortgage affordability calculator, the amount they can borrow reduces from £212,500 to £160,180 when the £1,000 is included.
If you do have children Trinity can arrange your mortgage through some of the more generous lenders.
If you subscribe to The Sunday Times, you can read the full story by clicking on this link: http://www.thesundaytimes.co.uk/sto/business/money/mortgage_and_property/article1201662.ece
February 8, 2013
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