It’s well-covered ground that getting onto the housing ladder is hugely challenging. And this week we discovered it got even tougher for young families, as we launched our latest campaign for uSwitch.com.
Our research found that right now, young families are not only being stung with high childcare costs, but this burden is also impacting their ability to secure the best mortgage deal.
After looking into the Mortgage Market Review in April 2014 which led to the introduction of stricter mortgage eligibility criteria, we realised that many lenders now take childcare costs into consideration as part of their affordability assessment. This led us to our research, which found that one in six families (17%) who have applied for a mortgage in the last ten years say they’ve been turned down or offered a lower loan because of their childcare costs.
Our hard-hitting story has been fully backed by the media, with nearly every national paper getting behind the issues uncovered by our campaign. On launch day, we pulled in a spread of national coverage including BBC, Business Insider, the I, Mirror, the Sun, Daily Mail, the Daily Telegraph. Talk Radio, Sky Radio and Heart FM also picked up the news and shared the views of our spokesperson and money expert, Tashema Jackson:
“It is worrying that many feel under pressure to conceal these costs during the mortgage application process, as this may have a severe impact on their ability to meet repayments in future.”