Worried-Fixed Term Ending-Lower income-HELP!

poppysarah

MissKay wrote: »

Thank you. I was beginning to feel like a freak. We don't have a lot of money. We're not on £36k at the moment as I'm still on maternity leave. We have a tiny, second hand car.

I've been seriously ill and we have some debts due to being silly and naive. I've always been very cautious with money. I've never been called lazy in my life and I've seriously been in tears over this.

I don't think I'll use these boards again.

You've said you've got silly debt of 10k so someone's not always been cautious with money.
Why don't you stay at home with your kids? It isn't lazy to do so as you'll find out. Your partner is showing classic signs of not wanting to give up full time work because of money worries so I suggest you address his major concerns very soon.

If you've been ill then you should be the one to take the time off and get your self back to full fitness rather than workin part time and being stressed about money.

As a teacher you've got massive holidays which amazingly enough fit in with the time kids are off school. As a result teachers spend more time with their kids than any other sector of the UK.
You'll also find that part time work isn't the easy option at all. Can you guarantee being timetabled sensibly?

Your child care options are an issue when they're going to impact on your finances.

minimike2

Looking at these figures I dont see any issues with the mortgage being affordable, or obtaining a mortgage of that amount.

This is of course, based on making certain lifestyle assumptions. If you dont waste your disposeable income on crap then you should have no problems.

toomanyshoes

MissKay wrote: »

Thank you. I was beginning to feel like a freak. We don't have a lot of money. We're not on £36k at the moment as I'm still on maternity leave. We have a tiny, second hand car.

I've been seriously ill and we have some debts due to being silly and naive. I've always been very cautious with money. I've never been called lazy in my life and I've seriously been in tears over this.

I don't think I'll use these boards again.

Hey dont worry, some people just have a very black and white view of life. Personally, I'm all for a great work/life balance and if you can achieve that, then good for you.

Bringing up children is a joy so why shouldn't you work your job to match your lifestyle rather than the other way round.

I'm sure most people would like to work less hours or spend more time with their growing family but cant because of finanical commitments. If you can work your life so that is possible, well done you! :beer:

sdooley

To go to the original question, on c. £2,200 net per month (which is not a low joint income, especially for part time work) you should be able to service a £100,000 income, not comfortably, but manageably. None of the parents of small children I know have holidays abroad or restaurant or takeaway meals etc in the first few years but I assume you've worked that out and think that's ok.

£100K mortgage at (would recommend you get a long-term fix rate) is going to give a monthly repayment in the region of £800-£950 on a repayment basis including insurance etc. You can afford those repayments.

However there are numerous credits available for the cost of childcare as in every other sector of the economy it would be impossible for anyone to do what you are proposing to do. This is not unfair, the credits are generous because almost everybody needs them. Resentment on this board may have stemmed from this - although the charitable interpretation is that people thought in a blinkered view that the standard way is the only way.

As a result of childcare credits covering much of the cost of childcare, you would be better off if one of you at least went to work full time as a teacher, with childcare during the hours you are off. But that doesn't mean your alternative plan wouldn't work, though it would involve you not having much money (but you know that).

MissKay

Thanks. Much more helpful today.

I know it's going to be a bit tight, I was prepared for that but it's good to hear that it's feasible. And thanks, Prudent, for reminding me that there's always supply work.

I don't think we will qualify for childcare credit yet as both our babies are still under two and Sept birthdays, which makes things complicated.

barnaby-bear

sdooley wrote: »

To go to the original question, on c. £2,200 net per month (which is not a low joint income, especially for part time work)

They are talking the equivalent of less than 3xsingle salary mortgage.

£100K mortgage at (would recommend you get a long-term fix rate) is going to give a monthly repayment in the region of £800-£950 on a repayment basis including insurance etc. You can afford those repayments.

That sounds scaremongeringly high. The nationwide no fees, life time tracker is 6.44% (on a relatively small mortgage the fees can make it not worth it so gone for a high-ish rate assuming 23 years repayment) and it's £700 a month.

However there are numerous credits available for the cost of childcare as in every other sector of the economy it would be impossible for anyone to do what you are proposing to do. This is not unfair, the credits are generous because almost everybody needs them. Resentment on this board may have stemmed from this - although the charitable interpretation is that people thought in a blinkered view that the standard way is the only way.

As a result of childcare credits covering much of the cost of childcare, you would be better off if one of you at least went to work full time as a teacher, with childcare during the hours you are off. But that doesn't mean your alternative plan wouldn't work, though it would involve you not having much money (but you know that).

Teachers are often not better off using childcare - childcare providers want to work all year round and even though they may have long holidays they would still have to pay childcare.

I really do not understand why people have a problem with two parents both working part time but not one parent staying at home.

I can see huge advantages in the both part time:
Two tax allowances
Both parents get to spend time with the child.
If one loses their job/has hours cut there's the potential fall back, i.e. can only lose half income at once rather than all if only one full time (from a mortgage providers point of view this and the two tax allowances surely make them a better bet).
Both parents stay in work place so don't have problems re-entering when kids older, retraining etc.

If the OP had said - I'm a teacher working full time on £36k a year, we've two kids but the wife wants to look after them herself and is staying at home, can we get a remortgage for £100k? Bit worried money will be tight doing this so what kind of product, rate and payment level will be available?

barnaby-bear

MissKay wrote: »

Thanks. Much more helpful today.

I know it's going to be a bit tight, I was prepared for that but it's good to hear that it's feasible. And thanks, Prudent, for reminding me that there's always supply work.

I don't think we will qualify for childcare credit yet as both our babies are still under two and Sept birthdays, which makes things complicated.

Might be an idea to edit the title to say "Lower income" - as that's your real concern. For people on min. wage etc it will grate e.t.c. even though I certainly don't think you can be living it up.

neverdespairgirl

If you are worried about money, can I suggest you look at the debt-free wannabe board? They are great at helping people cut down, change utilities providers, etc, and save money without missing out on things.

It's a very friendly board as well.

bankersmug

MissKay wrote: »

Thanks. Much more helpful today.

I know it's going to be a bit tight, I was prepared for that but it's good to hear that it's feasible. And thanks, Prudent, for reminding me that there's always supply work.

I don't think we will qualify for childcare credit yet as both our babies are still under two and Sept birthdays, which makes things complicated.

Miss Kay can I also commend you for actually wanting to raise your own children, and not fob them off onto others in the pursuit of wealth.(it's for the kids they say - kids need time & love first, cash second) Can't believe you took flak for this!!
As well as supply teaching, have you considered giving extra tutoring for GCSE/Entrance exams. They can come to you won't have to leave the little ones.

Also re supply teaching, there's a lot of agencies around so its good to sign up for as many as possible.

sdooley

Barnaby - you are right of course that there are better and/or cheaper mortgage deals - I was giving costs including home insurance, unemployment protection etc - on an average product....