First home & pregnant.

LottieLou

My boyfriend and I have been looking on and off for our first house together since October 14. He had a personal loan to pay off so although we were seriously looking and made an offer on 1 house, we were laid back about it.

I have recently found out I'm pregnant and although it would be nice to start the process before baby arrives, I'm trying not to get over stressed with it all. The problem is house prices have gone from a little crazy to bazerk and we are finding supply of first time houses few and far between.

I have the whole deposit & refurb money, he is contributing his half of fees etc (with a deed of trust - no plans to marry) and that is ok with me.

Getting to the point, since we found out about the pregnancy my head is torn on the most sensible thing to do.

We have found 2 houses we like, both at an open day and sealed bids (in South manchester). One is a 2 bed Victorian terrace, downstairs bathroom, needs double glazing and updating (we rent one down the road) for offers over (ignoring that) £155,000. And the second, a 3 bed, large garden, needs updating and new kitchen (possibility of boiler/roof given the age) but structurally secure for offers over 225,000.

I know everybody is different, but would you possibly stretch yourself and go for the longer term family home, or the terrace which would be ok for 5 years. (with an option to keep it for a rental if circumstances allow in the future)

The terrace would mean we could definitely be able to put down a 20% deposit and have money over to cover all the works (moving bathroom etc) and have a baby fund. The 3 bed means we have a family home and don't have to fight the possibly rocketing prices in the area in the future, and our family could grow. But our deposit would be 15% max with the fear of our mortgage payments being tight with a young child.

Any opinions will be grateful to help me stop over analysing!!

arbrighton

I would go for the smaller house for now, don't stretch too much when interest rates are likely to go up

movilogo

House is a long term purchase. 2 bed is tight with a baby and if you have another baby you will struggle.

Rather go for 3 bed house if your finance permits [15% deposit should be fine]. However, do keep in mind that you should be in a position to afford the payment when interest rate goes up (it won't very soon and even then rise will be very slow).

fairy_lights

I'd go for the smaller house, a 2 bed should have plenty of space for you and a baby and the improvements you will be able to afford will add value.
If you stretched your budget and bought the bigger house, there is no guarantee you will want to live their long term - you might end up relocating for work etc, so I would go for what you can comfortably afford.

Mrs_Soup

I've always gone for what I could afford comfortably so I would probably be cautious. A two bed is plenty big enough for 1 child and possibly even 2 depending on the size of the bedrooms (children can share like they did in the olden days providing its not a box room.) If this will take the stress off and allow you to enjoy being parents without worrying over money then I'd go for the terrace- there are enough other things to stress over when you have children.

Old_Git

how much time will you have off work and will you be paid .
What will the child minding arrangements be .

ViolaLass

You've probably found few houses because it's been winter, not because of the market going 'barzerk'.

LottieLou

Thank you for all your replies.

All being well I would like to take 12 months as maternity. I get good maternity pay in comparison to most, and will be splitting it equally throughout. So I will be able to cover my expenses as they are currently with a little left over. I am doing overtime and agency shifts as much as I can to build a mat leave contingency pot/baby things just in case.

Child minding wise we haven't got that far, my plan would be to apply for flexible working. Pay a family member (mum) for 1day of childcare a week and work one day of the weekend so my partner can be the childcare (meaning I would work 28 hours a week).

It is the lack of garden in the terrace that makes the 3 bed appeal. I was lucky enough to grow up in a house with garden and outdoor toys, I don't want my child to miss out on any of that. However silly that may seem.

Mrs soup - I am the cautious/sensible type too and doing the calculations, the 2 bed is the comfortable option. What worries me is difficulty getting on the next step of the ladder when we need more space.

Thank you violalass, I should have put that there are houses, but many overpriced for the market. Those that are sensibly priced (like the ones we are viewing) go quickly.

GwylimT

I would go for the two bed, plenty big enough for you and it will enable you to enrich little ones life more with says out etc in the early years as you will have more disposable income.

Daerve

We went for the 2 bed and are now in the position of having to move because baby became little girl with little brother in bunk beds.

Your income will likely rise where your mortgage (excepting of course interest rate rises) will not.

What may be a stretch now won't be in 10 years time and you may find yourself in a position where you have to move to stop the Thomas the Tank Engine posters fighting for space with the Disney Princess one's if you go for the 2 bed.

Also, gardens and kids are like jelly and ice cream. Don't worry about not having much money when baby comes, all they want is your time.

lizards

In your situation I would go for the three bed, especially if it has a garden and the other one doesn't. When we bought our first house (2 bed mid terrace) it was all we could afford. Ten years later we're now in a financial position to afford payments on a four bed detached - a lot will change. Also there's the whole "forever home" aspect - there is a lot more joy to be had from decorating a house knowing you'll be there for at least a decade versus a few years.

Obviously if it's going to be a very tight stretch then don't do it, but if prospects are only going to improve for you both over the next few years then so long as you get a fixed deal, which I imagine you would, it would probably not be too long before repayments are a lot more comfortable.

We also found two children a very tight squeeze in a two bed!