How much 'loading' on mortgage for two small kids?

A

ApplePie

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Hi all, we had figures from our mortgage company and I gave them all the info re our income, dependants etc.... Just at the end of my last call, the advisor mentioned that of course, us having 2 kids would effect the amount they'll be able to give us. Now, I thought that information had been included when doing the calculations on our behalf.
SHe's away now until Tuesday and no-one else in the office will talk to us, without being familiar with the case. So, maybe someone here can help!!

We have 2 kids under 5. What difference will this make to the amount we can successfully borrow?

Thanks in advance
Sarah
 
What mortgage company? How many lenders do they deal with? Rather than wait for them to return from their long long weekend why not ring around some of the lenders directly and see what they are willing to offer you?
 
well in some areas of the country the calculations are

1. Childcare €200 per child per week. 50 weeks a year payable

2. Thats €20000 from your takehome which would pay a damn fine mortgage on its own.

3. The government contributes 1000 each + 250 a month the 2 x 12 or €4500 each in chlidrens allowance

Subtract 3 from 2 and you are left with €16500 that a childless couple do not have to find.

€16500 cash is the takehome for a €22000 (ish) salary nowaday , thats a lot of money and must be factored in.
 
When our mortgage compnay was stress testing our mortgage application, they included childcare costs, as it is as much as having to service another mortgage.
 
Subtract 3 from 2 and you are left with €16500 that a childless couple do not have to find.

€16500 cash is the takehome for a €22000 (ish) salary nowaday , thats a lot of money and must be factored in.
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But that's not going to be for the duration of the loan, I don't think it makes a huge difference, but I'd do what CLubman says, ring around a few looking for general quotes, mention the kid thing and see what effect that has. Although some of our actual brokers here may come good in the interim.
 
The EBS and Bank of Scotland both take the number of children into account when calculating the amount you can borrow. The others don't.

Sarah

www.rea.ie
 
Thanks for your replies. We don't use formal childcare and my oldest child will be starting school in September. If they only take in childcare costs, we might get away lightly! I'll let ye know how we get on!
Sarah
 
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