Could the extended government support for childcare give the property market a much-needed boost?
17th March
Matthew Ticehurst from Cranwell Wealth Solutions offers his take on the news that was announced this week in the spring budget.
“The much-needed announcements to childcare changes in the spring budget might just increase affordability for mortgage applications,” says Matthew Ticehurst, Mortgage Adviser of Cranwell Wealth Solutions who are based locally in Heathfield.
Matthew has dedicated his career to the mortgage sector and has witnessed first-hand the turmoil of the property market and the subsequent lending interest rate rises over recent months.
Matthew points out that for a long time now, new parents with children under three years old have been at a significant disadvantage in the housing market. Their affordability, as calculated by lenders, is decimated by the short-term high cost of childcare. For some childcare costs can be a significant percentage of their earnings. This cost is usually for a fixed time frame and clients often put moving on hold at a time when they need the extra space the most.
With the greater childcare support announced in the spring budget, the hope is that this is likely to make a significant difference to young families and the income they could dedicate to a new or existing mortgage. Thus, either enabling them to move quicker or pay off additional funds on their mortgage sooner.
Matthew hopes the announcement will now offer parents much better choices about whether to work and where they want to call home.
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Cranwell Wealth Solutions offer a comprehensive range of first charge mortgages from across the market that are made available to mortgage intermediaries for which we are paid a procuration fee by the lender.
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