How much does having a dependant affect mortgage offer?
Discussion
We have been searching for a house the past 4 months or so.
Have offered on 3 properties and lost out on all.
We are at the top of our mortgage affordability based on our earnings at this stage and still struggling to secure a property.
Our plan was to take a break and start looking over springtime again. However, I'm now pregnant and thinking I need to get in a house preferably before the arrival.
We are currently living in a lovely top floor apartment (with lift) - and it's perfectly big enough for us to manage with a baby, but I'm nervous that if we leave it until the baby arrives that our mortgage affordability will drop to the point that we will struggle even more to get on the ladder.
Current rates mean that a mortgage on a 2 bed house will be approximately £150-£200 cheaper than what we are currently paying in rent. Rent in our area has gone up and it wouldn't surprise me if we are hit with a increase in rent soon. Comparable apartments are currently being rented for approximately £250 more than what we are paying.
Are we mad rushing to buy before baby arrives to secure something or will we be ok to take a break and see what's out there at a later date?
Have offered on 3 properties and lost out on all.
We are at the top of our mortgage affordability based on our earnings at this stage and still struggling to secure a property.
Our plan was to take a break and start looking over springtime again. However, I'm now pregnant and thinking I need to get in a house preferably before the arrival.
We are currently living in a lovely top floor apartment (with lift) - and it's perfectly big enough for us to manage with a baby, but I'm nervous that if we leave it until the baby arrives that our mortgage affordability will drop to the point that we will struggle even more to get on the ladder.
Current rates mean that a mortgage on a 2 bed house will be approximately £150-£200 cheaper than what we are currently paying in rent. Rent in our area has gone up and it wouldn't surprise me if we are hit with a increase in rent soon. Comparable apartments are currently being rented for approximately £250 more than what we are paying.
Are we mad rushing to buy before baby arrives to secure something or will we be ok to take a break and see what's out there at a later date?
When lenders assess affordability dependants do ,reduce maximum borrowing capacity and any childcare costs will also be treated as an expense.
If you are then planning a long maternity break it might affect things if you are reliant on overtime commission or bonuses to make up the income as lenders often expect recent evidence to include this.
Whether you should rush or not is down to you but for obtaining higher borrowings it might be easier.
If you are then planning a long maternity break it might affect things if you are reliant on overtime commission or bonuses to make up the income as lenders often expect recent evidence to include this.
Whether you should rush or not is down to you but for obtaining higher borrowings it might be easier.
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