Do we take a break from looking in this situation?

startingout2016

We had an offer accepted on a house in August. The sellers have since pulled out as changed their minds.

We have been searching ever since and viewed numerous properties but nothing that has been suitable.

We are currently renting.

Not too sure if it makes much of a difference but the figures we are looking at are as follows:

Rent in 2 bed apartment = £1100 pm.

Mortgage per month based on agreement in principle (for the value of the house we were originally buying which is our max budget using their affordability calculators) - £895 per month. This was a 2 bed house.

There is not a lot coming onto the market and its getting quite stressful. We had decided if the last place we viewed was no good that we would take a break and maybe start looking again in the new year.

My issue is that we are now pregnant.
I am the main earner.

Does this mean that we should be pushing to buy something sooner or later?
If we don't find anything and then Im on maternity leave I assume our affordability will drop considerably (Even though we will be spending more per month on renting a small apartment)
Is this something to worry / start panicking over?

marksoton

startingout2016 wrote: »

My issue is that we are now pregnant.

That's impressive!

startingout2016

Ok, im pregnant. We are having a baby

Small_Yeti

You'll find it definitely affects how much lenders will be prepared to offer when you have the child because they'll factor in the costs.

In addition, one problem you may experience, and I'm not sure whether this still goes on, is that your entire salary is effectively ignored if you are pregnant. We started looking a couple of years back and unexpectedly but happily found out I was expecting (not too happily as it turns out as sadly that story didn't have a happy ending) and really struggled to find a mortgage. I was also the main earner at the time but pretty much every mortgage lender specifically asked whether I was pregnant as as soon as I answered yes refused to grant a mortgage because they stated they couldn't guarantee I would go back to work as "you may feel differently once you've had the child".

I'm not sure if this practice still goes on - we're just going through getting a mortgage at the moment and I haven't been asked the question - although I was asked if I knew of any significant changes that may occur to our current situation - which is one way of asking if you are expecting a child I suspect!

Good luck with the pregnancy and I hope you find a nice home be it sooner or later.

enthusiasticsaver

Yes it will affect your ability to get a mortgage and it should do. You will have a period of maternity leave so you need to check out maternity pay and whether you are entitled to it or will rely on statutory maternity pay. You also need to consider if you do go back to work then you will need to pay for childcare so any mortgage you get needs to be affordable. I would be looking at a lower budget in your circumstances.

startingout2016

In which case it will be better us buying now as we will end up with a cheaper mortgage per month than our rent for a larger place and our rent is likely to increase. My partner would be able to afford the mortgage on his salary alone, but it would be a stretch for him to afford the rent should I happen to be out of work for any prolonged period of time.

Our max budget is at the bottom end of houses within a 20 mile radius of our work so not possible to reduce our budget.

We have £40k saved for deposit and fees.

Our alternative option is to carry on renting and when I am out of work using part of this towards paying the rent when I am not earning.

This will obviously mean our hopes of earning in future will most likley vanish.

Mr_Costcutter

From a pratical point of view - would you have the time and energy to devote to finding a property, once the baby has arrived? I know we wouldn't have lol

Thrugelmir

Small_Yeti wrote: »

I'm not sure if this practice still goes on

It's within your rights under employment law. Lenders therefore have to factor all possibilities in.

marksoton

startingout2016 wrote: »

My partner would be able to afford the mortgage on his salary alone,

Depending on how honest you are the mortgage company may well disagree.

Bonfire_Bride

Mr_Costcutter wrote: »

From a pratical point of view - would you have the time and energy to devote to finding a property, once the baby has arrived? I know we wouldn't have lol

I went through a pregnancy, birth and caring for a newborn while house was on the market....while keeping a 2 year old toddler entertained. That WAS fun. Trying to keep a house at "showhome" level was great! :rotfl:

Many women return to full time work after babies, but I believe the majority do not. I did after my first but dropped a day after my 2nd (mainly down to my mam being unwell...she looks after the children) If you don't have a family member to "babysit"..you have to then factor in child care etc which does not come cheap.

Carefully consider your finances....

Don't rush into a purchase just for the sake of it though, you don't want to start resenting the purchase because you felt you were "rushed" into it.

Congratulations

itchyfeet123

marksoton wrote: »

Depending on how honest you are the mortgage company may well disagree.

Bonfire_Bride wrote: »

If you don't have a family member to "babysit"..you have to then factor in child care etc which does not come cheap.

Carefully consider your finances....

If OP is the main earner and a stay-at-home parent is desired, it might make more sense for partner to stay at home.

To be clear, I'm not telling the OP what to do -- pregnant women get plenty of that already. Just putting one more option on the table, which I'm sure OP and partner have thought of themselves, but people making suggestions on the thread might not have.