How can we ever afford a baby?

For any other problem that has to do with the self.
Forum rules
NEW USERS HAVE TO WAIT FOR THEIR FIRST POSTS TO BE APPROVED BY AN ADMINISTRATOR. Rules | Essential Information | FAQ | Support | Twitter

How can we ever afford a baby?

Postby kitten » Mon Feb 05, 2007 11:55 am

My husband and I want to start a family in the next few years. So we went to review our mortgage. At the moment its managable between us we earn around £24,000 in a good year which means we have about £1500 - £2000 a month - our outgoings are about £1,500 leaving us comfortable as we are.

I've looked up tax credits and if I wasn't working and based on husbands salary we'd get about £230 a month which would mean we'd have about £1000 a month to cover everything which obviously doesn't equate! Especially since with a baby we'd have more outgoings.

Our mortgage is the biggest expense at £540 which is interest only in December it goes to repayment at £650. We are looking at other mortgages but they are all similar.

At the moment we are getting quite upset about it because short of winning the lottery we can't see how we can start a family. A smaller house isn't an option as we are only in a two bed and to move down would leave no room for child.

Any suggestions and how have those of you with children managed to start families and afford it?
User avatar
kitten
Permanent Fixture
Permanent Fixture
 
Posts: 1451
Joined: Mon Jun 24, 2002 3:56 pm

Postby brfc » Mon Feb 05, 2007 12:20 pm

me and the g/f are having a baby in about a months time. guess in a way we were fortunate as alot of reletives bought or give us baby things. got loads of stuff now. we rent a 2 bed flat at 475 a month and inc gas electric bills etc its about 680 for the outgoings. i think its worth checking on cheap deals for your bills. certain companys are doing deals like tv phone and internet for 30 pound a month. also charity shops are a great place too get baby stuff too. people only have things for a few months then get rid of them.
brfc
Permanent Fixture
Permanent Fixture
 
Posts: 1901
Joined: Tue Dec 21, 2004 3:35 pm
Location: BATH
Gender: Male

Postby kitten » Tue Feb 06, 2007 11:23 am

If we have a girl we'd be fine, my best friend has offered me her baby stuff.

Parents still have my cot, but its the mortgage that is the main worry as that is the big bill that would become unmanagable. :(

Our other bills are good deals there are a few expenses we could cut back on, I could reduce my savings.
User avatar
kitten
Permanent Fixture
Permanent Fixture
 
Posts: 1451
Joined: Mon Jun 24, 2002 3:56 pm

Postby Domus Clamantium » Tue Feb 06, 2007 8:07 pm

Unfortunately theres not a lot can you do about your mortgage as its not exactly something you can do with out - how come your mortgage is changing to a Repayment basis? Was it a special deal where you only pay interest for a set period? Also, does your lender offer a payment holiday facility? Your best bet would to either get an IFA, or arrange an appointment with an MA at your local branch.

I work in mortgages, and its always surprised me how there are special mortgages available for FTBs, retired people, ex-pats, those in the forces, etc, but not for people who want to start a family...
Never Look Back
Domus Clamantium
Familiar Face
Familiar Face
 
Posts: 118
Joined: Thu Apr 14, 2005 11:03 pm
Location: Kent

Postby kitten » Wed Feb 07, 2007 10:13 am

Yes it was a special deal, and because we have everything with the same bank, they know we have nothing to pay the capital back with if we carried on interest only.

We are looking into other lenders at the moment and father in law is an accountant and is looking for us, so hopefully we can come to some sort of arrangement. Its just very frustrating at the moment
User avatar
kitten
Permanent Fixture
Permanent Fixture
 
Posts: 1451
Joined: Mon Jun 24, 2002 3:56 pm

Postby retrochav » Fri Feb 16, 2007 12:22 pm

Dont forget that you would be entitled to Child Tax credit and your partner may be able to claim working tax credit if his income is low on its own. You would be able to claim Statutory Maternity Pay which most employers top up to your normal weekly wage.

Child benefit is £17.45 per week regardless of income, and there is the child trust fund which is a start towards the future. Like most new parrents, it is a struggle at first. But you probably wont be going out as much or living the way you do now.

In 1992 I took on two children for two years and my partner and myself had £67 per week to live on once rent and poll tax (as it was then) were paid. Yet we eat healthier and made more use of parks and liabrays and friends and families than ever before, and i would do it again if it came to it. You would be amazed to find that people are like tea bags - you dont know how strong they are until their in hot water!
whatever your problem someone else has been there and bears the scars.
retrochav
Permanent Fixture
Permanent Fixture
 
Posts: 1217
Joined: Mon Jul 10, 2006 8:48 am
Location: London

Postby kitten » Fri Feb 16, 2007 12:32 pm

Thanks. We've looked at what credits we'd recieve something like £250 a month and 99p for working tax credits!

However we have a financial adviser coming round on Wednesday and he thinks he can save us £250 a month by putting our mortgage and loan together and fix the rate which is great news.
User avatar
kitten
Permanent Fixture
Permanent Fixture
 
Posts: 1451
Joined: Mon Jun 24, 2002 3:56 pm


Return to And the rest...

Who is online

Users browsing this forum: No registered users and 1 guest