Head of Content
Mortgage Advisor & Director
How does having a child ruin your mortgage chances?
Children are expensive. No doubt having children reduces your amount of disposable income, but does it also damage your chances of getting the mortgage you want? Mortgage providers have tightened their affordability criteria over recent years, taking more into account when it comes to your income and expenses. Childcare can be a significant expense for parents, with some shelling out more than half of their monthly income on nursery fees, breakfast and after school clubs.
There are lenders who take into account your family circumstances as part of their affordability calculation, including expenses such as childcare.
This can have a massive impact on the amount they're willing to lend if they approve your application at all. However, other lenders are more lenient when it comes to lending to growing families.
Finding the right lender can make a significant difference to the mortgage you're offered, which is why it's important to work with an experienced broker. At Teito, we've helped many parents to find the best mortgage for them, at market-leading rates. We've streamlined the application process to make it as stress-free and straightforward as possible. Get started comparing deals now, and you could find your perfect mortgage within minutes.
Can child benefit payments count towards your income?
Some lenders are now considering child benefit payments as part of their affordability calculation, which makes sense as this income is stable, reliable and long-term.
Do childcare costs count against your mortgage application?
There are some lenders who will take into account childcare fees when it comes to mortgage affordability.
Some parents try to conceal their childcare costs in the months before making a mortgage application, for example, by relying more on relatives to look after the children or by reducing their hours at work (this could actually be detrimental to your application). If you are able to make cuts to your expenses in general before applying for a mortgage, this will help your application, but better to make long-term and sustainable savings than a quick fix.
You could try to plan your mortgage application after your childcare costs reduce naturally, for example, if your child is entitled to free childcare hours after turning three or starting school.
Can you get a mortgage when you're pregnant?
Getting a mortgage either when you're pregnant or on maternity (or paternity) leave can feel daunting. Some lenders are more lenient than others when it comes to growing families, and there are also a few steps you can take to improve your chances or approval.
Finding the right lender is the first step, and your mortgage broker can help with this. Your savings and planned return to work will help your mortgage lender get a complete picture of your situation; detail is key.
Stress-free mortgage journeys by Teito
At Teito, as a whole of market mortgage broker, we work with more than 100 lenders, including those who specialise in mortgages for growing families.
We recognise that with a busy home life, the last thing you want to worry about is your mortgage application. That's why we've streamlined the process to make it as stress-free and straightforward as possible! No more time-wasting appointments or unnecessary steps. Simply start comparing deals now to get started, and you can find your perfect mortgage in minutes.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.
