Pregnant and single, need help re mortgage

[Lolalo94]

I’ve recently found out I’m pregnant and the dad has made it clear he is going to have no involvement - I am leaning towards keeping the baby but I am so so anxious with regards to my financial situation and just need any sort of advice anyone can offer. I currently work full time and have a mortgage on a 2 bed flat which is solely in my name. I don’t have any savings. I’m very concerned thinking about how I will be able to continue paying for my mortgage (let-alone everything else) as my maternity pay would not be much and then when the 39 weeks were up I would have to put the baby in nursery and go back to work full time which I suppose would just about be doable when working again full time. Am I being completely mad for thinking I can do this? I have this terrible fear that I will default on mortgage repayments simply as my maternity wouldn’t be enough, I’ve no idea what sort of benefits if any I’d be entitled to. Can anyone help?

I have had a look at the online benefits calculator but can’t make much sense of it

Can you get someone in to share the second room??

Hi op
I use "entitled to calculator".
Happy to help you fill it in to calculate your entitlements if you like?

I'm a single mum- working with a mortgage & little involvement/ zero maintenance from the ex.
Sorry you've been thrown in this situation

Similar happened to me. When my mat pay dropped to just statutory maternity pay, ie £120 a week, I got universal credit. Not ideal, but was enough to get by. I went back to work when she was 6 months old, 4 days a week. It's doable, and you find ways to manage. Even if dad doesn't want to be involved, you should still start a child maintenance claim. I was married to the dad with an older dc, so I didn't see any of it coming until it was too late. Baby is now a toddler and doing great. I'm exhausted but happier than ever 😌

It depends what your mortgage is really as to whether you can pay it whilst on mat leave. On Universal credit there is no specific element that helps with mortgage payments like there is if you rent but you do get a higher work allowance if you have a mortgage meaning the first £553 of earnings is disregarded before deductions for earnings are taken off, so that helps a bit.

Start at the beginning.

What maternity pay will you get via your workplace?

What are your total outgoings?

How much can you save now over 6-8 months?

Maternity pay is 90% for 6 weeks which would be fine and then turns to £150 a week for 32 weeks I think or thereabouts, so £600ish a month after the first 6 weeks. Plus any universal credit I may be entitled to. Thinking I’d have to actually take only 12 weeks or so mat leave and put the baby in nursery, it would be a stretch paying £400 odd a month for a nursery place but I think I will need a full wage so no choice. Baby’s dad doesn’t work so don’t know how realistic it is to expect him to pay anything - he may do but I’m trying to sort my finances on the assumption I can’t rely on him.

Thanks for everyone who has replied so far xx

Depending on how much you earn you may well be entitled to help with childcare costs. Would extending your mortgage term be a possibility if things are going to be very difficult financially.

Full time nursery places are a lot more than £400.

UC can cover up to 85% £646.35 in childcare (you do have to pay up front)
If you go onto entitled to, fill in the questions as though baby had been born already it will give you a rough idea.
Another way to look at it:
UC adult element
child element
childcare element = total UC award.
Then take £557 from your wages and then multiply by 0.55. what is left is what will be taken from your Universal credit due to the taper rate.

For the £600 per month you will definitely get UC. Once you are back at work, it all depends on your salary.

There's also child benefit at £21 a week.

Maternity pay is 90% for 6 weeks which would be fine and then turns to £150 a week for 32 weeks I think or thereabouts, so £600ish a month after the first 6 weeks.

So what do you need to get by, and what can you save now?

If, for instance, you were on 70-75% of your salary, would that be OK? If so, pack as much away now as you can in savings. Then you’ll be used to not spending as much, and you can use those savings to supplement when your maternity allowance drops. How far then could you get through before having to return to work?

You’ll be entitled to Child Benefit as soon as the baby is born. That’s £84 every 4 weeks.

Have you looked into nurseries? £400 a month would be very cheap by me. It’s worth checking. Childminders are cheaper usually and for very young babies I’d prefer a home environment but you need to know what you’d like.

You should be entitled to use the tax-free childcare scheme which will save you a lot: www.gov.uk/childcare-calculator

How much do you earn and how much is your mortgage?
You need advice on universal credit - try the online calculators and arm yourself with information on how the system works.
It may well be that your better off renting as universal credit would pay your rent (but not your mortgage)
But I wouldn't make that decision lightly.
You could also switch your mortgage to interest only payments while on maternity leave which would lower the cost.
There are lots of options.

Hello OP,
A couple of queries to think about

• Is your job one that you could easily reurn to after a career break?
• How much equity do you have in your flat?

If your job can be picked up in 4 or 5 years, with little equity in your flat, you could sell up and rent, give up work after maternity leave until your child starts school. This will protect your credit score, enabling you to buy again when you are in a better financial position. It's also likley to be the most financially advantageous and stable in terms of rent, bills and disposable income in those years.

If your career is one that would be difficult to return to after a break, and you also have some equity in your flat, then you could try the following:

• remortgage, taking out a lump sum, and extending the term as long as you possibly can. If possible switch to an interest only. Use the lump sum to pay the mortgage payments during your maternity leave - seeing if you can secure a flexible mortgage which allows you to repay larger amounts upfront and smaller amounts later in the year (or even withdraw more if needed) - this will mean your claim for UC will not be penalised by the savings limit. Paying bills for which you cannot claim benefits (such as house insurance) with an annual payment upfront will also reduce the savings amount for UC.

Step one is putting together a budget.

So put your monthly take-home pay and then take away all your expenses (mortgage, bills, insurances, car, food etc etc). Make sure to account for annual or quarterly expenses as well.

Anything left, save like mad for the next 9(ish) months. This will help get you through maternity leave.

Do the same again but for your income while on maternity leave - that will help you understand if you can afford it (and give you a savings goal).

Then do it once more but for when you’re back at work - so add in any benefits you’re entitled to as income; but remember to also add childcare costs as an expense (do some Googling to see what costs are like in your area).

Consider if there is anything you can do to either increase your income (overtime? Promotion?); or reduce your expenses (could you work 4 compressed days to save on a day of childcare fees?)

I went back to work when dc was 5 months old and extended the mortgage term. I went back full time, being in full time nursery was fine for dc. It was financially tight until dc started school, but doable.

You can do it! I saved like crazy and got a lodger. Lengthened mortgaged term to reduce mortgage payments. You get universal credit whilst on stat maternity pay. You will also be entitled to a £500 maternity grant. Childcare you get some support (and you may be better off working part time). Do the entitled to calculator to help you.

I bought most baby things second hand and I spend less as not spending on petrol/lunch etc on maternity leave.