I am in London in a second floor 2 bed flat and a £1282 mortgage. I am 7 months pregnant and thanking my lucky stars I didn't move. I was made redundant just as I got pregnant and dh went on long term sick leave (on full pay for 6 months and now on income protection for 66% of full pay and has full pay for 4 months paternity leave). However despite all this shit happening, mortgage is still 30% of after tax income even at its absolute lowest and we could buy all new things for baby even though that's not essential and pay deposits for childcare (in preparation for return to work) as well as finance £700 for dh's medications every month..nhs waiting list is for 3 years so it is absolutely essential for us and dh employer pays for his insurance which covers the rest of the costs..
You don't know what happening around the corner. We had been v stable with rapidly increasing incomes since 2017 hence why we could afford to buy a London flat in our 20s. And the years before we had baby, we were overpaying 1k per month into mortgage and we saved a lot of money in addition (struggled with infertility for 10 years though only 2 years of active trying). Mostly because we were on 1k mortgage.
Our second bedroom is a single. We put my desk in there for now as well as a single bed if either of us needs a nap. Changing table, baby wardrobe and moses basket is there too and we have the cot in our room. When baby moves into his own room, I will move my desk into my room (I did work like that during the pandemic).. dh has desk in reception room as it always has been. I got a yoyo zen pram which is lightweight.
We would probably be glad of the mortgage when facing 2k childcare fees just like we were glad of it during our low point. Very early days but now I am pregnant, I know for sure that if I had to choose between a bigger place and private school fees (same cost as nursery), i would choose private school and tbh as long as our incomes were what they were pre baby, we could afford it on our low mortgage (particularly if we can save a good buffer for the fees when we qualify for free hours).. especially since my prediction is that london flat prices wouldn't rise for the next 20 years (my friend's flat in Coventry still is the same price it was in 08 and my friend's flat in Yorkshire is 50% of its original value in 08; London is following the same trend as prices have been flat for 10 years). So to me I would rather invest in education but I feel I wouldn't have known this before I got pregnant. In fact before I got pregnant I was dreaming of larger properties incessantly but now even if i had the money, all these things don't seem so important
In effect our flat would be a depreciating asset; however it has been invaluable for our little family cos there is no way you could ever have rented a 2 bed flat in zone 3 for this level of mortgage, flats like mine are renting for 2k. Dh just got a vasectomy so in effect we could stay forever.
Funnily when I asked whether I should move to a bigger flat pre baby, there were wise mumsnetters who said I should stay put and not be overleveraged during mat leave. Turns out they were right.