We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Buy a house before or after second baby?
HandyToes
Posts: 10 Forumite
Hi, I would like some advice on whether we should take a risk or not...I know there are no guarantees but it would be a calculated risk!
So my husband and I have enough money saved for a 10% deposit and the costs of buying a three bed house. We currently rent a two bed for us and our two year old. The baby is due in October.
My husband is on a permanent contract and my job is fixed term till the end of August which is unlikely to be renewed as it's maternity cover and she's been off having her second baby.
We both would really like the security of owning our own home for our family, having already had to move twice since our first has been born.
Buying a three bed house means the mortgage would cost £162 a month more than renting our two bed at the moment. I have done the financial calculations based on our current spending over the last year and the savings we would have left minus the house buying costs and have worked out that we would have enough money for me to take 9 months of maternity leave (maternity allowance) plus savings to cover costs for 18 months should I not find a job straight after the end of maternity leave.
So do we take the risk of buying a house based on our current income knowing that I won't have a job to go back to after maternity leave? I feel that 18 months is a reasonable cushion to take that risk. It took me 8 months to find another job after my last lot of maternity leave ended.
My concern is that if we don't take the risk then our income will be even less after the second baby with two lots of childcare and so we are less likely to be loaned the money. We know we can afford the monthly repayments it's just the combination of our two salaries minus childcare that I think will work against us, in terms of being lent the money. But maybe I'm wrong?
What would you do?!
Thanks
So my husband and I have enough money saved for a 10% deposit and the costs of buying a three bed house. We currently rent a two bed for us and our two year old. The baby is due in October.
My husband is on a permanent contract and my job is fixed term till the end of August which is unlikely to be renewed as it's maternity cover and she's been off having her second baby.
We both would really like the security of owning our own home for our family, having already had to move twice since our first has been born.
Buying a three bed house means the mortgage would cost £162 a month more than renting our two bed at the moment. I have done the financial calculations based on our current spending over the last year and the savings we would have left minus the house buying costs and have worked out that we would have enough money for me to take 9 months of maternity leave (maternity allowance) plus savings to cover costs for 18 months should I not find a job straight after the end of maternity leave.
So do we take the risk of buying a house based on our current income knowing that I won't have a job to go back to after maternity leave? I feel that 18 months is a reasonable cushion to take that risk. It took me 8 months to find another job after my last lot of maternity leave ended.
My concern is that if we don't take the risk then our income will be even less after the second baby with two lots of childcare and so we are less likely to be loaned the money. We know we can afford the monthly repayments it's just the combination of our two salaries minus childcare that I think will work against us, in terms of being lent the money. But maybe I'm wrong?
What would you do?!
Thanks
0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.4K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards