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Nabby81

Parents Hit With £100K Mortgage Penalty

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http://www.dailymail.co.uk/money/mortgageshome/article-3799004/Parents-hit-100-000-mortgage-penalty-sending-children-nursery.html

Families where both parents work are being penalised by lenders when they apply for a mortgage.

For the first time, we can reveal how banks slash the loans they offer to borrowers whose children go to nursery, where fees are soaring, or are looked after by a nanny.

Parents who pay for childcare are having a third stripped off the amount they can borrow to buy a home.

It means a couple who each earn £30,000 and pay £920 a month for two children in childcare can typically borrow £100,000 less than a family with the same overall income, but where one parent stays at home.

So if you have kids don't expect to buy in the South then :mellow:

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Or for many, if you live in the south don't (or can't) have kids.

Of course the politicians will never talks about the cost structure THEY have imposed on the population causing the demographic issues THEY say can only be squared by unfettered numbers of economic migrants and THEY never then dare mention the effect that has on congestion, demands on services, tax giveaways on low paid work etc, etc,

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High house prices mean for many parents its a choice between buying & having kids - available monies will only allow one.

Kind of defeats the point of mothers racing back into the workplace.

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Childcare costs a lot of money and means you have less spare cash to fund a mortgsge.

Hardly rocket science,

As ever house prices aren't too high - banks just aren't lending people enough money to buy them!!

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Or maybe....F**KING OFFER LESS WHEN BUYING A HOUSE.

And to do that we need to restructure the housing market.

Either full tax relief for everyone on Residential property or no tax relief for anyone using any corporate structure)...

The great thing is that I think we have a chancellor who actually understands how the housing market works and may implement the latter....

Edited by eek

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Or maybe....F**KING OFFER LESS WHEN BUYING A HOUSE.

You can't (to particiapte in the rigged market) when banks are lending others more money to outbid you.

These problems are structural, and intententional. High house prices and fake economic growth driven from them (including outsize enrichment of the banking sector) is policy.

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You can't (to particiapte in the rigged market) when banks are lending others more money to outbid you.

These problems are structural, and intententional. High house prices and fake economic growth driven from them (including outsize enrichment of the banking sector) is policy.

The people outbidding at the same idiots who are lying to borrow that extra 100K.

I agree, the market is broken.

People really need to wake up to this though.

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It's called responsible lending.

As the parent of 2 young kids, my childcare costs were higher than my mortgage costs for a period. It's absolutely right that the banks should include this in their calculations.

Edited by sisyphal

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I thought the government were subsidising child care to get the debt-slave mothers back to work?! Think the LidDems yesterday advocated 30 hours free weekly childcare? - work to push house prices up you glorious mums, and abandon your kids to the quality upbringing of the state-funded teenage minimum wage chav carers, its the ideal way to bring up your kids!

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It's funny that not being allowed to take on debt is seen as some sort of breach of human rights!

Debt = Wealth

Agree, this just highlights the craziness of the market.

'Experts said the blows would be a 'huge shock' to young families, many of whom are already struggling to get on to or move up the property ladder.'

And there it is again. 'the property ladder', it is a one way bet. The more you borrow, the richer you will be. What will it take to destroy this 30 year old myth?

Edit: changed format only.

Edited by renting til I die

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Worth noting that this £60k income dual earning household sits well inside the richest top 10% of households on a post tax income basis, ignoring any benefits received.

Of course, houses are definitely not too expensive, it's those pesky 4 and 5 times joint salary limits, innit.

If 4-5 times incomes is the issue than the issue is Borrow to Letters being able to borrow more... S24 and Basel will fix that in the coming years....

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Or maybe....F**KING OFFER LESS WHEN BUYING A HOUSE.

I am confused. You mean don't just pay what a rigged estate agent and banks valuer tell you too? ?

Won't be long until the creeping HPI stops....and when it does and people stop to see how high these prices have climbed and those people start looking down - that the market will then become more realistic very quickly.

It's just a question of when.

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Our situation:

Mortgage = ~£650 per month (£170k mortgage)

Of which interest = £175 per month

Cost of a month of childcare at the neighbourhood nursery = £1020 per month (5 days per week)

And I'm sure that there are lots of other costs of having children too.

So having a kid in nursery is a bit like going on holiday every month for a couple of years.

Having two kids means you can bring your wife too! B)

If people think that your personal circumstances should not have any impact on how much you are allowed to borrow then they are living in a very strange headspace.

Edited by Palangot

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Our situation:

Mortgage = ~£650 per month (£170k mortgage)

Of which interest = £175 per month

Cost of a month of childcare at the neighbourhood nursery = £1020 per month (5 days per week)

And I'm sure that there are lots of other costs of having children too.

So having a kid in nursery is a bit like going on holiday every month for a couple of years.

Having two kids means you can bring your wife too! B)

If people think that your personal circumstances should not have any impact on how much you are allowed to borrow then they are living in a very strange headspace.

Just had a quote from a childminder

£250 a week

£25 per day for days we don't use her i.e Holiday

Full day rate for bank holidays

So I can fully understand why banks won't let when you have that kind of outlay , so that begs question how can anyone with kids now afford and with that in mind the market must be effected eventually when no one with kids can afford to buy as FTB or move up the ''ladder''

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£250 per week - is that her looking after the kids for a full day (9-5)?

Yeah full day this is in Hitchin near my wife's work.In Luton can get one a little cheaper but few have spaces.

So its incredibly expensive and yet your lucky if you can find one

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so that begs question how can anyone with kids now afford

"Hi Mum, Dad, there's something I've been thinking to ask you about. You know how we've been looking at buying a house..."

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So I can fully understand why banks won't let when you have that kind of outlay , so that begs question how can anyone with kids now afford and with that in mind the market must be effected eventually when no one with kids can afford to buy as FTB or move up the ''ladder''

Don't mention you have kids on your mortgage application?

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£250 per week - is that her looking after the kids for a full day (9-5)?

Same in edinburgh. 50 quid a day is the going rate...about 6 years ago when i first looked the cheapest i could find was 38 but the prices go up year on year no matter what.My nursery had you pay every day the place waas open, no matter whether you were on holiday etc.

The govt pays for a set no of hours 'free' childcare but we quickly found that this could only be used at a nursery where a qualified teacher taught the curriculum. Of my 3 local nurseries only one had a qualified teacher (the others used to but the council cut their funding) so we were unable to use the govts 'free' childcare.

When we had our second child we received a 5% discount but that still meant we needed to find 15k to put 2 kids to nursery 3 days a week so my wife could work. Bloody ridiculous and my wife ended up quitting her job. Unfortunately my salary puts us out of tax credits.

To put 2 kids into nursery 5 days a week so you can work full time would require a salary of 32k a year just to break even. My wife enjoyed working...but not enough to not see her kids during the week for literally nothing.

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