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?

Thank you chipsandpeas I will definitely be doing this if I can!

Hi hollowtalk it's all to do with how much of a deposit you have, so I'm not sure about a 100% mortgage tbh. The guy did explain it all, it's also to do with things like your outgoings and your credit history, so basically: the more of a 'safe bet' you are, the lower your interest.

So if you earn a lot and spend it all, you're likely to get a higher interest rate than someone who earns less but spends very little!

I forgot to add- the guy did explain it all BUT a lot of it went over our heads because we are not good with numbers.

But what I did understand were the basics I've just written there 😊

I don't think you can afford a house ... a mortgage can be similar to renting as well.
Although children are capable of sharing houses ... I grew up fairly comfortable and knew loads of siblings who shared, why do people think this is horrible now? They all loved it.
Go for social.

Well done! What a lovely update.

With regard to working, do consider getting yourself listed with some event agencies when you go back to study and extend your family. They pay pretty well, and you can pick up occasional ad hoc work, particularly in the summer months. It will be a nice extra money wise if you have everything sorted financially or for when the boiler or your car break down.

Could you look at a two bed which is two big doubles as you could split one into two singles for a second DC. Cheaper than an extension!

Result ! 👍🍷🍻🍰🌼🌸🌹

Yes overthehedge I've heard they pay really well! Thanks name the cat I know! I'm so excited!!!

Congratulations! As greetings card as this sounds: wishing you and your family all the best! A lovely update.

I think there have been some harsh responses here. I don't think there is anything wrong with going on the social housing register in your area whilst saving to buy. In my northern city you are able to get a council house reasonably quickly if you are willing to bid on houses in unpopular areas. If you have a restricted search area you could be waiting years. You'd only qualify for a 2 bed house but you'd be able to view them before accepting (or not). If you get a council house it may be cheaper and easier to save for a mortgage in the future and you'd free up your property for another family.

Whoops- just read the update. Congratulations OP

Thank you user I love a good greetings card!! And brim I really appreciate you being so helpful; the advice I've had throughout the thread has been a bit all over the shop, but in the end, all of the (sensible) responses were measured and helpful like yours!

One thing I've really taken from this thread is that I want there to be less stigma attached to social housing. It shouldn't be a "own your own home or you're a benefit fraud" situation. And people should never feel guilty for wanting the best for their family! I would never judge someone else for where they lived, what they earned or how many children they had.

It feels like the old class systems are coming back! Not everyone claiming tax credits or applying for social housing is having hundreds of children with multiple partners just to get a bigger house, then feeding them gruel because they can't afford them! But honestly- you'd think that's what I had asked in my OP!!!