Exploring the Impact of Childcare Costs on Mortgage Affordability for High-Earning Young Families

Our team of experts looked at how childcare expenses affect the mortgage options available to young families in London with substantial incomes, set against the backdrop of the new government childcare provision. Scroll down to read the case study.

Starting in April 2024, families began receiving up to 15 hours a week of funded childcare for 2-3-year-olds, with the plan expanding in September 2025 to include 30 hours for children as young as nine months. However, this benefit?is capped?for families where either parent earns more than ￡100,000 annually.

Jessica Burton , Director at Anderson Harris, says, “To match the borrowing position of Family 1, the higher earner in Family 2 would need an annual income of ￡145,000—representing a 45% increase from the earnings of Family 1. This scenario sheds light on the obstacles faced by higher earners who have built their financial status through hard work and effort rather than inheriting wealth or receiving family support. It highlights the need for reassessing lending standards to more effectively support and recognise self-made success.”

Read our first Capital & Interests blog article here on the the removal of government support for young families and how this has an enormous impact on #affordability for mortgages.?

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