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Original poster

Baby due and mortgage doubling - what am I going to do?!

34 replies

mrsthomasx · 07/11/2022 20:36

I feel I just need to let all my feelings out… this is not a moan just need somewhere to write all my feelings down.

After 2 years of trying me and my husband are finally pregnant and expecting our first baby in January 2023 which were both over the moon about.

Our 5 year fix mortgage rate is up for renewal next year and after having a meeting with a financial advisor we’ve basically been told that our monthly payments with the new interest rate will double which quite frankly worries the hell out of me.

We are lucky we are both well paid but as soon as my maternity pay kicks in next year it will basically mean we’re living month by month with everything else going up and will mean that I’ll have no option but to go back to work much earlier than planned which upsets me. How could I leave my 4-5 month old baby??!

We’ve both worked so hard to get the jobs we have even if we’re not paid massive salaries so that we can start a family and just when everything feels like it’s falling into place this happens.

We’ve been saving which is good and will help to an extent but I’m now having to turn around to family and say that we won’t be getting gifts for anyone at Christmas which I feel incredibly embarrassed about (not that they’ve made me feel this way it’s just how I feel!)

I’m just at a loss as to what to think of it all and needed to write this somewhere.

😭😭

OP posts:
Dacadactyl · 07/11/2022 20:41

Is moving to a new, cheaper area an option? We moved up North and away from family because London was so expensive and we wanted me to be a SAHM.

Totally understand if you don't think this is viable though.

Dacadactyl · 07/11/2022 20:42

Are family able to help with childcare at all?

Ikeameatballs · 07/11/2022 20:45

Can you get your maternity pay spread out equally across your maternity leave? I know it’s no more money overall but would this help with budgeting?

Can you extend the term of your mortgage?

ISeeTheLight · 07/11/2022 20:47

I went back to work full time when DD was 5.5 months. It was ideal but needs must and it was okay.

Also speak with another broker though, you never know they may find something cheaper. We recently went through London&Country and they were great.

musttryharder84 · 07/11/2022 20:57

Firstly congratulations!
Secondly, can you extend the mortgage term to reduce payments?
Would it be possible for your partner (or even you depending on how you're finding pregnancy) to get a second job over Christmas to save a bit more?
But also it's not the end of the world going back to work after 4 or 5 months. I started back when my first was 6 months, then with my second I started back when she was 4 months (albeit WFH with her around as childcare was shut due to covid). Maybe you could try to negotiate returning part time for a while.

PlantDoctor · 07/11/2022 20:58

Congratulations on your long-awaited pregnancy!

Don't feel embarrassed about Christmas. You have a fantastic reason and I'm sure you're not the only one cutting right back. Many will be happy not to do gift exchanges this year! You could always make something like cookies or a scarf to give if it makes you feel better?

Definitely see if you can find a better deal elsewhere. Everything is so up in the air at the moment!

Gastonia · 07/11/2022 22:59

Congratulations on your baby. When our first DC was born almost 25 years ago, we rented out our spare room (the baby stayed in our room at the time). It was before AirBNB etc, so it would be much easier now. (Our neighbour's husband left her, and she rented out her own bedroom, and she slept in the lounge! Luckily we weren't that desperate.) No-one'll be worried about gifts at Xmas. 🙂

BMW6 · 08/11/2022 07:02

Set up a spreadsheet online to itemise monthly income and expenditure. Enables you to see where you can cut back spending and budget for the year ahead.

See if you can extend your mortgage term.

Could either of you take on a second p/t job evenings and or weekends.

Don't be embarrassed about cutting out Christmas presents for extended family - if any of them get arsey they are not worth knowing. Millions of people are in the same boat.

babbi · 08/11/2022 07:15

Congratulations on your lovely news .

regarding presents … the best present I could ever get any Xmas would be a relative telling me that a new baby was coming to the family !
The patter of tiny feet 🦶 truly is priceless ❤️

you can’t top that with anything you can buy and wrap .

ZooMemories · 08/11/2022 07:21

Ask your broker for a mortgage holiday? Xx

chosenone · 08/11/2022 07:21

Congratulations. Exciting times ahead.

Look carefully at what you want to prioritise and work it that way. Before the rate changes, save the extra to help with Mat leave. Or can you downsize move area?

I went back to work when DC was 5 months and it was ok, I missed her and I was part time but she settled well into the setting.

Toooldtoworry · 08/11/2022 07:31

Definitely consider extending the term of your mortgage. You can always reduce the term later.

mashpot · 08/11/2022 07:34

Could you do interest only mortgage while on mat leave to reduce the payments?

sashagabadon · 08/11/2022 07:35

Maternity leave was 6 months max when I had my kids and I went back both times when they were that age. It was hard but ok.
and agree with others extend your mortgage or get a 6 month holiday ( but be strict about this and don’t get used to the extra money)

howmanybicycles · 08/11/2022 07:36

I went back when my baby was 6 months because we needed the money. It was OK. With my second, we rented out a room in the house. If you're well paid, can you borrow some to cover debt you will accrue during mat leave?

converseandjeans · 08/11/2022 07:39

That's a nightmare. I feel sorry for people with all the other bills going up too.

I went back to work when mine were 5 months & then 6 months with my second baby. I went part time & also get teacher holidays so did get time with them then. It's not great leaving such a small baby - but it will be fine.

Can you get any help with childcare? Go part time maybe 4 days/week?

We had very little money when ours were tiny & somehow survived. We just had to be careful & would do free activities like city farm, rarely went to soft play or paid activities. Went camping for our holiday.

gogohmm · 08/11/2022 07:40

What interest rate have you been offered? My first property was 5.99% I also remember 15% rates! We've had them low for a long time but we need to be realistic and if necessary move to properties that are affordable - childcare and raising children otherwise isn't cheap. Is moving an option? Please don't worry about gifts though, everyone will understand

Wafflefudge · 08/11/2022 07:40

It is worth going through your budget see what you can cut, extend term to bring mortgage payments down in short term, see what difference that will make.

FlashFash · 08/11/2022 07:40

Hi op
I know it seems sad to think about now but many parents do go back to work at the 4-5 month mark
What does childcare look like for you?

Grumpycatsmum · 08/11/2022 07:45

I went back part time when DD was 9 weeks. It was fine and even managed to continue to part breast feed until she was 10 months. Loads of US mums have to go back after a couple of months and I found lots of good advice online from them. For me it was a better option to go back sooner and part time rather than leave it longer and then have to go back full time.

Also, fix rates may well come down a bit by next year so it may not be as bad as you think now.

kirinm · 08/11/2022 07:50

gogohmm · 08/11/2022 07:40

What interest rate have you been offered? My first property was 5.99% I also remember 15% rates! We've had them low for a long time but we need to be realistic and if necessary move to properties that are affordable - childcare and raising children otherwise isn't cheap. Is moving an option? Please don't worry about gifts though, everyone will understand

This argument is tedious and has been debunked a lot. When rates were in excess of 5% house prices were no where near where they are now.

Northbynorthbreast · 08/11/2022 07:50

Rates are weird right now because of truss. They will settle down a bit into next year and have already come down. Make sure you apply and fix something a month or so before yours runs out- I’m sure you’ll only pay double if you stay on the same mortgage and move onto their standard variable rate- if you fix it won’t be double.

also, look into 10 year fixed - at the moment, these are cheaper than 2 years for some reason x

good luck- it took us ages to have our child too and I had to return at 3 months as it was covid times and my own business so I needed to keep it afloat. It was ok, honestly x

SeasonFinale · 08/11/2022 07:52

I wouldn't actually move because stamp duty etc may end up being more than the difference. If you are about to remortgage anyway it's an ideal time to switch to a longer term or interest only for a while .

dementedma · 08/11/2022 07:56

I was self employed and had to go back to work when mine were weeks old. It's probably not recommended by some but it was fine and they've all done ok. You might find you are ready to go back to work earlier than you thought. Being at home with a baby can be very dull

LittleBearPad · 08/11/2022 07:59

What would the SVR be at least in the short term? You could also extend the term.

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