To ask WWYD as I am so stuck with this

[ificouldwritealettertome]

I'll try to be concise but don't want to drip feed. Me and DH have one DC, would love another sooner rather than later. Currently renting, but would like to buy before TTC so we are set up and financially sorted.

Money is tight- DH covers the rent and bills with very little left over and I cover the food shop, baby milk/clothes whatever we need. I'm a waitress on NMW and just about have enough money for these.

We have just under a 5% deposit for a 2 bed house in the area we live in. Our budget would not allow for a 3 bed, but of course we will need a 3 bed for our 2nd DC. So We would have to build an extension on the 2 bed (financially doable as we have friends/family in the building and carpentry trade and would have help).

Starting now, to secure a mortgage, we would have to reduce our monthly spending (even smaller food shops, etc) for at least 3 months and I would have to up my hours at work so that our pay slips look better and we save up the rest of our deposit. I am currently doing 30 hours and DD is only just 8 months so that will be hard.

We would see very little of each other as a family and money would be extremely tight, we have already cancelled things like Sky and have changed energy providers to the cheapest tariff, etc so our bills are as low as physically possible.

If we get denied a mortgage, we will be applying for social housing as we can not afford to rent a 3 bed and our current place is absolutely tiny. My question is, AIBU to think about jusy going for social housing straight away?

We are already struggling financially and I don't know how many more hours at work I can take. I am exhausted. I already miss the baby and am looking forward to a sibling for her but, realistically, if we buy it would be a couple of years to extend by the time we have completed the sale, applied for planning permission and built it.

I feel as though we may go through all the stress of applying for a mortgage and get denied anyway as we do not have much money and will only have a 5% deposit. Should we push for a house that we own, which is something we both really want, or just accept that it is too ambitious for us and apply for affordable housing? WWYD?

Oh God what an essay- no one is going to read that!

You don't need a three bedroom house, your children can share a bedroom. You seem to be putting unnecessary pressure on yourselves.

I would definitely go for a mortgage before just going for a council house. Put the graft in for the 3 months- it's not so long and will be worth it.

I would but the 2nd baby on hold for a year as it sound like you are struggling far too much as it is.

Some posters are great at budgeting if you are happy to post your actual income and expenditure?

How easy is it to get SH where you are ? We have about a 10 year waiting list here.

But what you described is just what people have to do to get a mortgage. You have to make sacrfices

They couldn't where we live- the second bedroom fits a cot and a chest of drawers. The house we would like to buy is exactly the same, it's directly opposite us and identical! But the only size place we can afford to rent or buy.

You dont need 3 beds. I shared with sister until i left home.

You would only get a 2 bed from social housing anyway so not getting the dilemma? Your children would be expected to share until 8 if they were different genders and until 18 if they were the same so the 3 bed is not coming until after the baby either way round

No I didn't read it all, I stopped at the bit where you said you might apply for social housing for a third bedroom. Social landlords do NOT supply on a child per bedroom basis. If your second child is the same gender then you will never qualify for a third bedroom. Really, kids share rooms, it's no big deal and weird that you are so hung up on it when the child isn't even here yet?

Sorry that last post was to katmarie, I wasn't expecting any replies after reading my OP back!

We've already got the budgeting thing down! Life just seems very expensive. And yes we would wait until we are financially secure before having the next DC- we want to be sensible.

And I'm not certain about the wait for social housing- we haven't looked into it yet, mumsnet was my first stop!

Maybe find a good mortgage advisor and they can advise on how much you could borrow. Just make sure their advice is free and they work on commission. We have used a Moneysprite person before and pretty sure it's a national chain.
I don't think it's unreasonable to apply for social housing. Surely that's what's it for to help families?
Lots of help to buy schemes available now so own a percentage of house and generally only available to first time buyers.

DC share a room

Sounds as if you can't really a afford a second DC, though, sorry

You don’t need a three bed nor an extension at the moment. It wasn’t an essay, either. You’ve outlined your situation very well. Personally I wouldn’t overstretch right now. It sounds like you’re a careful saver and manager, so you’ll get there.

I read it! I get it! How old are you? Do you have time on your side if you wait to have another child?

If you would need to move to have another child and money is already tight, then personally I would say wait until you are somewhere bigger, whether this is renting or buying.

If things are already tight, is having another child something realistic? If you cannot afford the rent for a 3 bedroom, what makes you think that you can afford the mortgage?

If you are both working currently, you would be unlikely to be given a house on social housing. You also wouldn't necessarily be eligible for a 3 bedroom house. My neighbours who have a housing association house have been told they're DS and SD can share until they're 10, so they wouldn't be eligible for a 3 bedroom house unless they had another child.

Your children would be expected to share until 8 if they were different genders and until 18 if they were the same

Thank you, I didn't know that. Sorry if I've offended anyone, we don't want to claim any benefits we just need a bigger place as where we are is very small even for 3 of us and I thought you could rent cheaper directly from the council rather than from a private landlord. Am I wrong? Is this not how it works?

I think your living in a dream world if you think it will be so easy to get social housing!!

Why the rush to TTC no 2 if your DD is only 8 months old? Would it not make more sense to give yourselves a year or two to save? It doesn't sound as though you could afford another DC at the moment.

Thank you kitty and fatted, I really appreciate the advice

In my area you wouldn't qualify for social housing coming out of the private rented sector. Dont know why.

What about shared ownership where you buy part, and rent part.? Worth looking into? Then as you get salary increases you can buy more.

minister by 'sooner rather than later' I really just mean as soon as we are financially able. We want a decent and comfortable life for our kids.

I read today that the post office and another bank (can’t remember which one) are offering 100%mortgages again - ie no deposit required

What about a 100% mortgage and then keep your deposit for the costs like stamp duty, solicitors fee etc. Obviously only do this if it's not more than what you're paying in rent atm. Speak to an advisor who can tell you what the repayments would be on both. There's an article in the Mail today about banks doing 100% mortgages again to help first time buyers. I think they can work as long as you're sensible

Buy a house with decent size 2nd bedroom. Look to split it in two when your children (one not even here yet...no gaurantees remember...). Job done.

It's unlikely you'd qualify for a 3 bed in social housing. They'll expect children to share. Would you be happy if they offered you a 2 bed? I don't think you'd have any priority though so you could be waiting a long time. I'd stay where you are and keep saving until you have enough for that 3 bed. Perhaps even move somewhere with cheaper rent if there's cheaper areas nearby?

You can rent from the council cheaper (how much cheaper depends on area), but you would only be able to rent a property with the number of bedrooms you qualified for