DH and I own a decent family home in SE. Have about 50% equity. Pre DC we did not even think we were stretching ourselves to buy it and though we had discussed raising a family we assumed that I would go back to work and it would be well within our means.
Life changes though! Our first baby turned out to be twins and I did not go back to work. DH made redundant whilst I was pg, and me too at the end of my mat leave. We got payouts (this was 5 years ago when the big firms were still offering voluntary packages) we had savings and DH has worked about 3 years out of last 5 on fixed term contracts so we managed, each year thinking it would get better if we could just hang on a bit longer.
12m ago I thought we would have to sell house to survive, but I then got a full time job in a new industry, new career. Earn about half of what I used to, but it has prospects, it's family friendly, I enjoy it and it is enough to live on for a family who are sensible. DH is SAHP so no childcare. He has been seeking work, but no joy (his industry is particularly recession sensitive)
However, due to the house and the mortgage, my salary doesn't cover everything and we are still using our ever diminishing savings. We are very lucky to have family help with e.g. DC clothes so we are managing so far, but it's not sustainable for much longer.
I am frugal, we have cut unnecessary expenditure, we shop around for necessary things, cook from scratch etc. but i can't make enough of a difference through this alone. Its time for some serious changes. I am thinking of downsizing - the house, maybe the cars? What else should I think about? DH is reluctant to sell house so I need options to present to him.