We bought our home 3 years ago and will be due to remortgage in 2 years. When we bought, I was on £27,000 a year, my husband was self-employed with 3 years of steadily increasing books up to £10,000 net. We both had significant car debt and the mortgage we got was the top they would offer us at the time.
When we remortgage in 2 years I’ll be on £41,000 and my husband will still be at about £10,000 to £12,000 net but with more consistent books for each year and we’ve both cleared all car debt and plan to remain debt free (all being well in the next 2 years of course... I know life happens sometimes). So hopefully we’ll be in a good position to apply for a bigger mortgage as we’d really like to either move somewhere bigger or at least fund an extension via the remortgage.
But I’m now pregnant with our first child and we met with friends today who said we’d be lucky if they offered us any more on our mortgage because we’ll be spending so much on childcare and the general day to day living costs of having a child. We both plan to work full time after my maternity leave ends so I do know that our childcare costs are likely to be in the £700 a month region which is more than our mortgage currently but will it really impact our chances of getting a bigger mortgage when in every other aspect our finances are in a much better state than they were when we first got the mortgage? We really want to have more children after this little one but our house is just too small for anymore than 1.
As I’ll be on mat leave and then spending so much on childcare over the next 2 years we can’t save that much, maybe a few grand but no where near enough to do what we would like at home or our hopes to move.
We’re also currently overpaying our mortgage by £200 a month really to demonstrate that we can comfortably afford a bigger monthly payment even with the baby.
Does having children really impact your remortgage options by that much?
Many thanks in advance!