Mortgage or baby?

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We are in rented but ready to buy-finances in place, agreement in principle etc.

Thing is we cannot decide on where to live and are very put off by how expensive houses are near to where we currently rent.

We have been putting off ttc dc2 until we have bought a house but I am now wondering whether we should just continue to rent and ttc now?

The dilemma is that I do not want to return to work if we have another baby, and we will not be able to borrow as much then as now, as the loan will be based on just DHs salary.

Would I be shooting myself in the foot by not getting the house sorted first? I am becoming obsessed about the age gap between dc's but I wonder am a being silly? What if we have problems getting a mortgage in a year or so for example?

It's really taking over everything and we just need to make a decision and stick to it.

It will be 2 years until dc1 goes to school so I guess in theory we could have had dc2 and moved (to a much cheaper area) before she is in school? I would really like us to be settled and in our own home by this point.

Sorry if this is jumbled, I really need some perspective on what the best thing to do is. I should add that we had problems ttc and this is obviously a major factor in my upset, as is the fact that I am 35.

Please help us decide :(

What about repayments though? Is it wise to borrow money based on 2 salaries when you actively plan to live on one?

No contest. Focus on ttc. If you really want number 2 that is. The cosmic lottery that is baby making cannot be controlled like loans/mortgages etc... And you have a limited time window for ttc. Your property Can be sorted out anytime (in maybe less than ideal circumstances but then who has ideal circumstances?) . I'm sorry there is no practical advice here or weighing up of options but I think you are worrying about too many ifs and maybes. If you are blessed with a second child then it is exactly that - a blessing. Not something to be squeezed in around property purchases or regretted because missed a favourable mortgage rate. You obviously want number 2 and so long as your OH feels similarly then it is a no- brainer.

I think portofino has a good point. Don't think about taking on a big mortgage based on 2 salaries if you are planning on not working with dc2 arrives. Interest rates might be low now but can/will shoot up in the coming years and those who took on big mortgages based on these low interest rates will come a cropper. Thatcher years?!!?!

Thanks all for your advice.

Sorry, I should have made it clearer, I only work pt so it's not as though my income makes a huge difference, although it does make some difference. We are both very against stretching ourselves on mortgage repayments. We would be paying a relatively high interest rate anyway as our deposit is minimal.

In an ideal world I would be a SAHM or change jobs (main reason for not returning is that I really do not like my job anymore and it is making me miserable) but if I have to return to current job then obviously I would.

I think it's time to abandon plans of home ownership and get on with ttc :o

Oh and I should also have added that part of the dilemma has been the fact that DH is self employed so lenders will look more favourably upon us if I am also working as I negate the risk somewhat, being employed rather than self employed.

Does anyone know what happens when you're on maternity leave and are applying for a mortgage? Do they look at your SMP or your salary?

Bump

They SHOULD base it on your salary - but I have read varying tales on here. I suppose you need to think of it from the mortgage co's point of view. I think, personally, that owning a house is not a deal breaker. But being able to afford stuff (after mortgage, rent, bills etc) is.

So you should maybe do some cashflow scenarios. I wouldn't count on tax credits as income under current circumstances. So what does one wage and cb give you? Can you manage a second dc on that amount?

Hmmmmm, thanks Portofino. Yes we could manage a second dc. We will save what we can now to top up SMP to ease the burden a little-as I said though I am only pt-seeing as we won't be paying childcare costs for dc1 if I have another dc as I will look after them both, then there is not much in it to be honest. We have already decided that we will move to a cheaper area so that our mortgage repayments are more in line with our current rent.

I wouldn't worry about age gap too much, every gap has its advantages and disadvantages. 6 year gap here, DS2 just adores DS1 and DS1 was way ld enough not to get much jealousy.

I would buy and then ttc.

Also, consider buying a house and renting it out, thus freeing you up to rent where you want and still be buying into a house.

Thanks pullupapew, but my age is starting to be a factor? Food for thought re buying a place and renting it out though....

All my Mum friends are popping out dc2-it's not helping admittedly!