Single and SMP

dizsiebubba

Could you move into a 1 bed flat for a year (up until baby is 6 months old) in a cheaper area and rent out your place? There would be a big diff in the rent you pay and rent you receive that way?

onlyroz

My advice is:

- Carry over as much annual leave to next year as possible and then use it after the baby is born to extend your leave as much as possible

- Find out of your company pays anything above the SMP levels

- Save up as much as you can now, taking on an extra temporary job if possible, to cover your reduced income

- Look into your childcare options for after the baby is born, getting your name down with childminders and nurseries as soon as possible. Also find out if any relatives might help you out with childcare to reduce the amount of paid childcare you need

- Find out if you are entitled to any extra benefits while you are on reduced pay

- Find out if the child's father is willing to help you out (financially or otherwise) and ensure you put in a CSA request once the child is born

- Look into whether your accomodation costs could be reduced, e.g. by downsizing or taking in a lodger

tea_lover

onlyroz wrote: »

Find out if the child's father is willing to help you out

Whether he's willing or not he has financial responsibilities for the child.

claire21

Did he live with you, if so make sure you claim single person council tax now hes gone.

Speak to your mortgage advisor, perhaps they have terms that can help by cutting your repayments for a limited time?

SingleMum2B

Thanks again for the additional advice.

If I can get a mortgage break that will be a HUGE relief as I will probably just about be able to manage. However, I have just read that these are only available to people who have a mortgage of 80% or less- I only put down a deposit of about 12%. Suppose its worth trying to make an appointment to talk to them.

The renting idea- this is actually a really good idea. Does anyone know how I go about getting my place rented out? Assuming I have to talk to my mortgage provider?

I really do appreciate all the advice- thank you so much!

jtr2803

onlyroz wrote: »

My advice is:

- Carry over as much annual leave to next year as possible and then use it after the baby is born to extend your leave as much as possible

I just wanted to add to this - your 'maternity leave' must start no later than the day after the baby arrives. I would personally recommend that you use it to cover any period you are off work before the birth and then have the SMP. Any unused holiday cannot be taken away from you and would be paid at the end of your maternity period.

onlyroz

jtr2803 wrote: »

I just wanted to add to this - your 'maternity leave' must start no later than the day after the baby arrives. I would personally recommend that you use it to cover any period you are off work before the birth and then have the SMP. Any unused holiday cannot be taken away from you and would be paid at the end of your maternity period.

It depends on when the due date is and how the company organises annual leave. In my company annual leave runs Jan-Dec and you lose any that you don't use up by Dec 31st. However, I was able to transfer 10 days from one year to the next and use it after my maternity leave ended, along with the annual leave allotment for that year - giving me around 6 weeks annual leave on top of the 4-months maternity leave that I took.

Also, I worked up until a week before the birth, helped by the fact that my company allowed me to work the last month from home. I appreciate that it's not always possible to plan like this though - I was induced and so I knew exactly when my due date would be, but pregnancies rarely run like clockwork...

Fire_Fox

SingleMum2B wrote: »

The renting idea- this is actually a really good idea. Does anyone know how I go about getting my place rented out? Assuming I have to talk to my mortgage provider?

I really do appreciate all the advice- thank you so much!

Seriously it is not a good idea unless you are prepared to do loads of research into the REAMS of legislation you have to comply with and thrive on stress. Tenants can ring you at all times of day and night, they can trash your home or simply not pay rent so you can't meet the mortgage. :eek: The rent will class as income so you will need to do tax returns and be ineligible for various means tested benefits. You could end up in court if you need to evict tenants, or if you mess up with the paperwork and the tenants claim against you.

If you really want to go there you need to ask your lender for consent to lease, this is likely only to be granted if you have a decent amount of equity. Also read G_M's excellent post over on the House Buying board, including all the links! http://forums.moneysavingexpert.com/showpost.php?p=41160642&postcount=12

How do you feel about taking in a lodger? The income is tax free up to a certain point, so less paperwork and easy to get the person to leave if it doesn't work. I don't suppose everyone wants to live with a new baby but I bet there are those that do, especially if you are charging less than the going rate. You might even end up with a built in babysitter!

You might also look into paying your car off and selling it. I am saying that based on you living in London (hopefully good transport links) and you already getting groceries delivered. It's often cheaper to get taxis when necessary than to run a car. You can always buy another car when you go back to work after forty or fifty weeks.

LittleMoog

SingleMum2B wrote: »

Thank you for the advice.

I don't have Satellite TV. The only bills I pay are my council tax, electricity and gas, water rates, broadband, phone line. My mobile phone is a company phone- I make about £5-10 worth of personal calls a month. I tend to stick to text messaging as the contract is unlimited text messaging. I get my shopping through Sainsburys delivery- spend about £45 a week. I think I am going to make separate posts about the cheaper supermarkets/gas and electricity providers etc. My car still has 13 months left on a lease so nothing I can do about that- plus I need it for work anyway. My bills seem to be so high because of my mortgage- I live in London. I think that speaks for itself.

I am fortunate that I have no debt aside from student loans
I may look into getting a small loan- I have a excellent credit record so I don't think it will be a problem, maybe not a good idea though.

I will (unfortunately) have to pay childcare. Only family I have down here is my brother and his wife and they both work full time.

At our NCT antenatal classes our teacher told us that many companies offer a 6 month maternity mortgage holiday, but don't advertise it so you need to ring and find out.