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Shortsighted to TTC while still renting?

68 replies

Babydust00 · 21/05/2023 14:13

We are weighing up continuing to rent. We pay low rent for our small 2 bed (about 15% of our joint take home income). If we bought this house we’d be paying probs 700 more a month, ouch, not to mention anything bigger. We don’t live in London so prices should not be this way given we are on average salaries.
Have offer of deposit help but actually scared of buying given the best we could hope for with repayments would be 30% of our joint income, which doesn’t leave much room for enjoying life or a safety net if anything goes wrong
We are debating waiting out for rates to come down which they’re expected to next year and wondering if it’s as silly as people say to deliberately plan to start your family when you have not yet purchased your first house. We do want to be home owners at some point it’s a huge goal of ours. Is it still possible to do this whilst pregnant/ with a baby or toddler or would we be making life unnecessarily difficult for ourselves? I understand lenders factor in childcare costs but we’d be hoping for only 2, maximum 3 days a week and the government 30 free hours for 9 month+ would be coming in by the time we were ready for that

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Babydust00 · 21/05/2023 17:43

Namechange9625 · 21/05/2023 17:33

When you have children you have to accept finances will be tight

When you buy property you have to accept finances will be tight.

It's about working out what is important to you

Definitely

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Babydust00 · 30/05/2023 21:09

Thank you, everyone

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mindutopia · 30/05/2023 21:31

Our eldest was 9 before we could buy our first house. Renting wouldn’t put me off have a child at all, as long as you have a plan. We knew it made more sense to rent and save as we didn’t want to buy where we were living at the time. That worked out really well for us and we have a beautiful house that definitely isn’t the sort we could have afforded pre-kids because our financial position has improved a lot over those years. I’m not really sure what percentage of our income we pay on our mortgage but we have a big mortgage and manage fine.

I would get an AIP so you know what you can afford and then work out your likely monthly payments and account for childcare expenses and mat leave and just see where that leaves you.

Realistically, many people never manage to buy and increasingly many can’t buy until their 30s and 40s, so it’s very normal to rent with kids.

Beezknees · 30/05/2023 21:32

I'll never be able to buy a house, many people won't. I had a child anyway.

SnackyOnassis · 30/05/2023 21:40

I would go for it with TTC - the first couple of years are going to be a squeeze on your finances no matter what your housing situation is. It shouldn't stop you buying, but I'd recommend speaking to a good broker first. We were renting when our first was born and bought when he was about six months old, I was still on maternity leave.

Our broker was an excellent guide; she ensured our application went in with my salary stated as what it would usually be if I were working full time, but still disclosed I was on mat leave so wasn't fraudulent. Thinking about it now, I suspect anything else would potentially be discriminatory?

She also helped us with the childcare question and had the lender asked any questions about how childcare would be paid for, she had all the info about how we had family help for several days a week and paid for nursery for a couple of days. I don't think it came up in the end, but overall I felt much more confident with an experienced broker helping us navigate the whole process!!

Babydust00 · 30/05/2023 21:45

SnackyOnassis · 30/05/2023 21:40

I would go for it with TTC - the first couple of years are going to be a squeeze on your finances no matter what your housing situation is. It shouldn't stop you buying, but I'd recommend speaking to a good broker first. We were renting when our first was born and bought when he was about six months old, I was still on maternity leave.

Our broker was an excellent guide; she ensured our application went in with my salary stated as what it would usually be if I were working full time, but still disclosed I was on mat leave so wasn't fraudulent. Thinking about it now, I suspect anything else would potentially be discriminatory?

She also helped us with the childcare question and had the lender asked any questions about how childcare would be paid for, she had all the info about how we had family help for several days a week and paid for nursery for a couple of days. I don't think it came up in the end, but overall I felt much more confident with an experienced broker helping us navigate the whole process!!

That’s so great to know thank you so much for this. Was it stressful trying to find somewhere to buy with a baby? I’ve heard it can massively affect what they’re willing to loan you which is the only thing that makes me wobble. X

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ThomasinaLivesHere · 30/05/2023 21:50

If you’re in your twenties you don’t have to rush to have children. You’ll likely have time. I’d want to own a home before children. I also moved with a one year old and it was such a pain and would have been easier to do it before.

Obviously there are people who find it hard to conceive and they’ll tell you to start straight away but you also have to be prepared that if you ttc you could be successful straight away.

SnackyOnassis · 30/05/2023 21:55

We bought a new build (it was already built and ready to go, so we got a good deal on it and didn't have to wait around like we would if buying off plan) and I suspect it would have been harder had we been getting into a chain situation and not know when we'd be moving!

It didn't affect the amount they were willing to lend us at all, normal rules still applied and our broker had enough supplementary documents like my payslips, recent communication with my work and confirmation of my return to work date etc that she'd have been able to provide if the lender had been stricter.

It won't hurt to ask the questions and get some guidance at least - it might be your first time buying, but it definitely won't be a broker's first time putting through an application for first time buyer parents!!

Best of luck with both TTC and the house hunt!!!

Babydust00 · 30/05/2023 22:13

SnackyOnassis · 30/05/2023 21:55

We bought a new build (it was already built and ready to go, so we got a good deal on it and didn't have to wait around like we would if buying off plan) and I suspect it would have been harder had we been getting into a chain situation and not know when we'd be moving!

It didn't affect the amount they were willing to lend us at all, normal rules still applied and our broker had enough supplementary documents like my payslips, recent communication with my work and confirmation of my return to work date etc that she'd have been able to provide if the lender had been stricter.

It won't hurt to ask the questions and get some guidance at least - it might be your first time buying, but it definitely won't be a broker's first time putting through an application for first time buyer parents!!

Best of luck with both TTC and the house hunt!!!

Ahhh that makes sense! Do you mind me asking what percent deposit you had?

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Babydust00 · 31/05/2023 08:25

ThomasinaLivesHere · 30/05/2023 21:50

If you’re in your twenties you don’t have to rush to have children. You’ll likely have time. I’d want to own a home before children. I also moved with a one year old and it was such a pain and would have been easier to do it before.

Obviously there are people who find it hard to conceive and they’ll tell you to start straight away but you also have to be prepared that if you ttc you could be successful straight away.

Thank you

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Babydust00 · 31/05/2023 08:48

I guess I’m just concerned we’d never buy if we did things this way. We have good salaries but I fear they’d look at us and straight out think, nope, you’ve got a dependent. At the same time we’ve almost saved the full amount for a deposit though, so financially we should be able to. I would just prefer to do it when rates are a little bit lower

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PurpleBananaSmoothie · 31/05/2023 09:23

Babydust00 · 31/05/2023 08:48

I guess I’m just concerned we’d never buy if we did things this way. We have good salaries but I fear they’d look at us and straight out think, nope, you’ve got a dependent. At the same time we’ve almost saved the full amount for a deposit though, so financially we should be able to. I would just prefer to do it when rates are a little bit lower

Rates aren’t going to be lower. Not as low as they have been for the last 10-15 years. We are going for a 5 year fixed because that gives us certainty whilst we’re paying childcare. Rates might drop and we might be paying more but if they don’t drop and rise again, we know we can afford the house and childcare until DD is at nursery. That certainty, that piece of mind is worth a lot to us and worth the risk that we potentially pay a higher rate of interest.

Mortgage lenders won’t look at you and right you off because you have a dependent. However, if you have childcare they will take that into account in the affordability. If you buy before kids your whole wage is taken into account. You then have kids and as maternity leave comes to an end, you and your partner sit down and work what childcare will be and how you can reduce it - compressing hours, going part time, grandparent support. If you have kids first, you will still work out what childcare you can afford because you still have rent. However, it might take you longer to finishing saving for the money needed to move (you have deposit, conveyancers fees, removals if you’re using them, money to decorate or do things up, money to buy furniture and your first mortgage payment is usually a bit higher).

I personally preferred to get a house first, then have kids because it’s harder to save while paying £1,000 a month for childcare. I would also move before kids if you can, I’m moving with an 18 month old and it’s harder than just moving as a couple.

Babydust00 · 31/05/2023 09:56

PurpleBananaSmoothie · 31/05/2023 09:23

Rates aren’t going to be lower. Not as low as they have been for the last 10-15 years. We are going for a 5 year fixed because that gives us certainty whilst we’re paying childcare. Rates might drop and we might be paying more but if they don’t drop and rise again, we know we can afford the house and childcare until DD is at nursery. That certainty, that piece of mind is worth a lot to us and worth the risk that we potentially pay a higher rate of interest.

Mortgage lenders won’t look at you and right you off because you have a dependent. However, if you have childcare they will take that into account in the affordability. If you buy before kids your whole wage is taken into account. You then have kids and as maternity leave comes to an end, you and your partner sit down and work what childcare will be and how you can reduce it - compressing hours, going part time, grandparent support. If you have kids first, you will still work out what childcare you can afford because you still have rent. However, it might take you longer to finishing saving for the money needed to move (you have deposit, conveyancers fees, removals if you’re using them, money to decorate or do things up, money to buy furniture and your first mortgage payment is usually a bit higher).

I personally preferred to get a house first, then have kids because it’s harder to save while paying £1,000 a month for childcare. I would also move before kids if you can, I’m moving with an 18 month old and it’s harder than just moving as a couple.

Thank you

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Foxesandsquirrels · 31/05/2023 10:00

Millions of people have babies in rental accomodation. Most people don't own homes. Whilst it's good you're counting the costs of children and thinking about it wisely, I'm assuming you're not going to be buying outright. In which case, anything can happen really.

Babydust00 · 31/05/2023 10:16

Foxesandsquirrels · 31/05/2023 10:00

Millions of people have babies in rental accomodation. Most people don't own homes. Whilst it's good you're counting the costs of children and thinking about it wisely, I'm assuming you're not going to be buying outright. In which case, anything can happen really.

No, you’re right, we’d need a mortgage. And a big one!

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Foxesandsquirrels · 31/05/2023 10:20

Babydust00 · 31/05/2023 10:16

No, you’re right, we’d need a mortgage. And a big one!

Sadly I feel it's almost safer to keep renting. The squeezed middle who can just about afford to buy really get no help when they fall on hard times. UC is good when you have kids and renting.

user1471538283 · 31/05/2023 10:31

If you can buy now I would buy. Your rent is cheap but it could go up, your landlord could sell.

Whilst buying is expensive you can chip away at it and eventually you will be more secure. With renting the rent will probably always go up.

Whilst you are both working and childless and first time buyers without a chain you are in a really good buying position.

Jarstastic · 31/05/2023 10:33

I would buy a 2-bedroom flat or house and then TTC. It would be hard to rent and pay childcare and save for your deposit. You could end up stuck.

Babydust00 · 31/05/2023 15:25

Jarstastic · 31/05/2023 10:33

I would buy a 2-bedroom flat or house and then TTC. It would be hard to rent and pay childcare and save for your deposit. You could end up stuck.

Thank you, we do already have deposit

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Babydust00 · 31/05/2023 16:15

Foxesandsquirrels · 31/05/2023 10:20

Sadly I feel it's almost safer to keep renting. The squeezed middle who can just about afford to buy really get no help when they fall on hard times. UC is good when you have kids and renting.

This is what we’re thinking in a strange kind of way, just until the market settles down for buying. Everyone thinks we’re crazy but I see it exactly how you do

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Babydust00 · 31/05/2023 16:26

I think the squeezed middle comment is so important for many actually

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Foxesandsquirrels · 31/05/2023 16:31

Babydust00 · 31/05/2023 16:15

This is what we’re thinking in a strange kind of way, just until the market settles down for buying. Everyone thinks we’re crazy but I see it exactly how you do

I just saw you already have a deposit. If this is over 6k you will get limited help from UC. They don't care if this is for a house.
Can you calculate how much you'd save by carrying on saving and putting that into a good return account Vs increase in house price? Neither of these is a guarantee but it'll give you a good idea of what to expect.

Babydust00 · 31/05/2023 16:39

Foxesandsquirrels · 31/05/2023 16:31

I just saw you already have a deposit. If this is over 6k you will get limited help from UC. They don't care if this is for a house.
Can you calculate how much you'd save by carrying on saving and putting that into a good return account Vs increase in house price? Neither of these is a guarantee but it'll give you a good idea of what to expect.

We have just under 6k and the rest is a gifted deposit. I’m just nervous about buying as you say and then not being able to qualify for help if we need to, it would be so much tighter than our finances now when renting never mind when I’m on reduced maternity income etc

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caringcarer · 31/05/2023 16:53

I saved up my deposit and bought a house then 3 years later I got pregnant. If you are going to attempt to buy a house I'd do it before getting pregnant. If you have no likelihood of being in a position to buy a house I'd just crack.on and get pregnant.

Babydust00 · 31/05/2023 16:56

caringcarer · 31/05/2023 16:53

I saved up my deposit and bought a house then 3 years later I got pregnant. If you are going to attempt to buy a house I'd do it before getting pregnant. If you have no likelihood of being in a position to buy a house I'd just crack.on and get pregnant.

We do have likelihood of doing it but the outgoings will be far higher than what they are now with us renting. I’d be worried about costs spiralling, with me on maternity leave and no government help just because we’ve bought. It feels the opposite of secure to me!

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