Finances ... Mortgage payments etc

[lucy_smith]

Hello everyone, just been thinking about my finances and I'm trying to workout how we will afford it, we are currently suppose to be starting to build a house and our mortgage payments will be 870£ a month as it's a self build it's £200 a month more expensive for the first 2 years. Do u mind me being really rude and ask how much u earn and how much your mortgage is . ? I'm worried we wind be able to afford to build it.

 

[Buffyx]

Didn't you work all that out before you started?

 

[tryn4]

Well its a long list of my expenses and I currently have 5 children and my husband and I make it work. I raised 4 of those children for 8 years on my own prior to meeting my husband and we were very poor. If you want to make it work it will work. I think your question is odd.

 

[LittleLala]

Did you speak to a mortgage broker prior pre approval of the mortgage? They usually look at your combined incomes and whether you can afford to make the payments. if you are concerned, perhaps speak to a financial advisor... Many financial advisors will give you a free first consult if someone can recommend them.

Are you worried about the cost of the mortgage, or more so the cost of a baby on top of it? If you are worried about the baby, maybe relax a little. A new baby is really as expensive as you make it. There are so many unnecessary costs that people assume you need (expensive pram, a cot, cute outfits... Etc), when in reality, you can live without.

 

[spicyorange]

Best thing to do is sit down with an excel spreadsheet (our pen and paper if you prefer) and list your after tax income and all your essential monthly expenditure - mortgage, bills, council tax, fuel etc, then do the same for your income on maternity leave. Then u will see if you need to cut back (and on what) or not.

 

[lucy_smith]

I'm probably jut worrying, I worked out that we will be fine, a little tighter but we will manage, I also have a years worth of wages saved so it's not like we are not prepared but my oh has just starte to have a little financial panic and it's got me going !

 

[Kirsty3051]

Are you already pregnant? I know you're posting on the first trimester board but it says you're WTT? I don't know how much you earn between you but personally, I'd wait until the extra £200 was dropped after the second year before starting TTC.

We live in a really expensive area and our rent is through the roof. We're paying out £1000 a month and that's before our household bills, car insurance, phone bills, food, petrol and everything else has been taken from the account. My husband runs his own business which is extremely successful and I worked full time before we started trying. There's no way we could afford to live and raise a baby if my husband was your average 9-5er, bringing home 18,000 a year.

 

[tryn4]

Anything is possible if the child is wanted.

 

[wonders10]

I'm thinking the OP is just have a little worry about buying/building a new, more expensive home while also raising another child. Both at the same time can be challenging. Not everyone plans every dollar before trying for a child or it ends up happening sooner than they think. It's understandable to worry , I've had my worries too as I do not get paid maternity leave in my job so I have just been saving as much as I can for us.

My question for OP...can you comfortably afford the new home if you were not having a baby? I'm in the same boat as lala, I don't think babies need nearly as much as some people think. Especially if you've already had 4 children you may still have things you can use. If you can't afford the house at all, then it probably isn't the right time, pregnant or not.

Good luck!

 

[lucy_smith]

Thanks wonders10.
Me and oh can afford the house quite easily with us both working. And I've sat down and done the math, spoke to oh and we think we should manage fine I have a years worth of savings incase we wanted to go on holiday or the washing machine broke etc so I think we should be ok! I know finances are constantly going to be my worry as I've always been very comfortable ( I'm not rich. average wages) but I've always ha money aside for what ifs etc .

 

[Buffyx]

I think the thing that will be our biggest expense is child care. After my maternity leave finishes, I'll be going back to work for 3 days. It costs $100 average here for a day in child care! So make sure you add that in to your budget if you're going back to work.

 

[kanga]

You'll just make it work. It will work.