How children can impact how much you can borrow

Paul Demarco from ESPC Mortgages looks at how children can impact how much you can borrow from a mortgage lender. 

Having children is often described as one of the best and most exciting things in life, but in terms of borrowing power, it can have a big impact. After all, children are expensive.

Mortgage Market Review

This is due to the mortgages rules introduced under the Mortgage Market Review (MMR) which mean that many lenders take childcare costs into consideration as part of weighing up whether to grant a mortgage applicant a loan. The rules were introduced to make sure borrowers could truly afford to repay their mortgages, even if interest rates were to rise, and ensure they were not just pinning their hopes on house prices going up.

School fees and childcare costs 

The main things that lenders look at in relation to what you can borrow if you have children are school fees and childcare or after school clubs. These are treated as a basic quality of living costs.

ESPC Mortgages

We at ESPC Mortgages can help you with any questions you may have. We are independent and have the knowledge and expertise to advise you. Give us a call on 0131 253 2920.

The information contained in this article is provided in good faith. Whilst every care has been taken in the preparation of the information, no responsibility is accepted for any errors which, despite our precautions, it may contain. No individual mortgage advice is given, nor intended to be given in this article. 

The initial consultation with an adviser is free and without obligation. Thereafter, ESPC Mortgages charges for mortgage advice are usually £350 (£295 for first time buyers). YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOANS SECURED AGAINST IT.

*Article is based on the information found in www.mirror.co.uk/money

ESPC (UK) Ltd is an Appointed Representative of Lyncombe Consultants Ltd which is authorised and regulated by the Financial Conduct Authority.