do we have any hope?

WantAnOrange

hello, just looking for some general advice. I desperately want to get off of housing benefit and get a mortgage so we can have our own home.

i have just been offered a new job. DH works around 35 hours a week but is on a 0 hour contract and minimum wage. My salary will be around 16000. We have 3 children, 2 of which will need childcare. We have been debating whether DH stops work or rearranges shifts so that we don't have to pay lots of childcare.

The mortgage calculator on here and the Barclays one shows that we couldn't get a mortgage even with both of our earnings. Well, not for a 3 bedroom house anyway.

I feel a bit hopeless. We both did degrees, we both have full time work so what are we doing wrong? Have I got it wrong here? Surely we should be able to support ourselves and have a home. Renting is so expensive here and we do that! Do they take into account Tax credits as earnings?

The job offer is a wonderful opportunity for me personally but I can't bear the thought of leaving my 7 month old 5 days a week for a job that doesn't leave us secure or better off.

amnblog

Three kids is an expensive proposition and in certain parts of the country property prices are well out of kilter with incomes.

Your question seems more about deciding what you want for your family than about mortgages.

Perhaps you will need to move area to obtain the work family balance you seek.

WantAnOrange

I suppose my questions are;

are tax credits taken into account?

will I be better off, financially, if I take this job or do I put up with being on benefits for a couple more years? (which I hate).

if I am no better off, and can't support ourselves while both working full time, then what the hell is wrong with country?

TravelBugHappy

I think you're being a bit harsh to be honest - you have chosen to have 3 children prior to buying a house so it will naturally be much harder for you to get on the property ladder.

Why would you consider asking your husband to stop working when he earns the most?

If I was in your position I'd concentrate on saving a deposit over the next 2 1/2 years then your 7 month old will be entitled to 30 hours free childcare (the new government has introduced this for children over 3) & I presume your older children will be in school - then it will be lots better on the affordability calculator.

Probs best to stop blaming the country and plan ahead, best of luck.

WantAnOrange

I don't think it is harsh to feel frustrated. I did everything I was supposed to do. I put myself through uni, I worked alongside doing that. I financially supported my husband while he did his degree. We both have full time employment so I am confused and frustrated. I don't really know what else I could give.

My husband is by far the lower earner by the way! It's all well and good getting a degree, getting work on more than minimum wage is tough. I am happy to move but the job I have just been offered is here, as is school and our parents.

roje

Tax credits are taken into account by some lenders. I'm a single parent with 4 children and have been approved for a mortgage with a high street lender based on my wage and tax credits. However I have a large deposit and a higher wage (you have a second wage in your household, though).
I do understand your frustration, gone are the days when one full time wage was enough to buy a modest first home for your family. I think you probably have to decide what your main priority is. You have a 7 month old at the moment. Would you rather spend more time with the baby now and continue renting, and try to save more of a deposit so that in a few years you can try again? If so, it might work out better financially if one of you remained at home with the baby or worked part time and the other did everything to find the best wage and contract possible.

Or is obtaining a mortgage the most crucial factor here? If so, your husband needs to try and find a permanent contract with a better wage which will be easier if he remains in employment, you should take the job and you should devote everything you can to saving a better deposit, keeping your credit files squeaky clean etc.

blueblazer

Have you any savings? Do you try and put something away each month towards a deposit? The reality of life is that getting on the property ladder is hard (especially with 3 kids) but if you really want to do it, it is possible but you might have to make other sacrifices and look at your monthly outgoings etc.

WantAnOrange

Thankyou for your answers, that is generally helpful! We have been living off of a very low income and are used to living frugally. We have never bought anything on credit but have student finance debt. DH tried hard but got disheartened I think. i am trying to tread the line between supportive and understanding and giving him a kick up the !!!!. In order to save I need to take this job. Its just a wrench to leave the kids and if we are not truely better off then why do it?

so far DH and I have agreed I will do it for a year while he looks for better work then reassess. Our eldest is in primary school, our middle child will have 15 hours free and our baby will be 7 months old when I start in october. DH can jiggle his shifts and grandparents can help so our childcare costa wont be high.

I do apologise if I came across as angry earlier and I certainly am aware that I chose to have children but I am working very hard now and just want to provide for them.

GoldenShadow

Why don't you pop over to the employment board and see if you can get some advice on job hunting for your OH? With the benefit shake up you might find you will be better off in the next couple of years working than not.

As you both have degrees I would have thought there would be more jobs open to you, but it depends what you came out with, what you want to do and what jobs are like in your part of the country.

In terms of what is wrong with this country etc, it is hard. OH and I are 23 and 26 and would love kids but we are prioritising a house first because we know it would be considerably harder to do it the other way around. We also want to get married first, again, a lot of people aren't bothered so it is just personal choice. Positives and negatives to doing any option, but planning in advance is definitely key. A lot of my friends are really envious we are buying, but we've saved hard for a long time to be in this position, we don't go on the massive holidays etc that they do, different lifestyle choices.

TravelBugHappy

Another (maybe more helpful) suggestion from me would be to find a job where you can work evenings & weekends and your husband 9-5 (or vice versa). This would cut out your childcare cost. I did it for a couple years and it worked well, albeit I didn't see my husband much. Call centres offer this kind if roll & usually pay a lot more than minimum wage. You could also look for shop, supermarket work etc

WantAnOrange

that is kind of what we are doing but the other way around. I am going to be managing a nursery and my hours are 8:50 til 3:15 ish (plus meetings etc) and DH works shifts at a fast food chain so he can work weekends/lates etc. The grandparents will help and DD1 will get 15 hours free. So not particularly worried about childcare.

My main concern is having high enough warnings on paper to be offered a mortgage, enough to get a house that is suitable (i don't want anything grand). Our rent is very high. Out housing benefit has been laughable so we know we could afford repayments. If tax credits are taken into account it might make all the difference and we can use The Help To Buy Scheme I think.