Unplanned pregnancy and financial worries

[JayDee89]

Hi, new to this..
Found out 2 weeks ago I'm pregnant. Not what I wanted to find out! I'm just short of being 6 weeks and waiting to get a doctors appointment, but in the mean time my worries and thoughts are driving me mad.
The good news is that I'm 29, have been with my partner for 11 years and ultimately one day we'd have liked to try for a baby, so that's a good start, but wasn't ready at all to be entering this stage of life just yet. We struggled for years to save for a deposit, but finally purchased a property at the beginning of the year. Problem is, it's a really compact 1 bed flat, and it was absolutely at the top end of our budget so there is most definitely no option for us to move to a bigger place.
My partner has 2 jobs, but they wouldn't support us both (well the three of us!!!) and I am self employed, so will lose so much money with having to take time off. I would not be entitled to statutory maternity pay. We just about get by each month currently (was hoping to perhaps have a holiday next year if we saved every spare penny but that's off the cards now!) I just don't know what we can do to cope with this life change financially, and living situation wise, I know we'll get away with having a young baby in the flat for a short while but realistically this time next year we'd already have to be thinking about what we do next! Has anyone else been in this sort of situation and what support did you receive /decisions did you make?? Or does anybody just have any general advice on how we'd make it work?
Sorry this is so long!

Hi JayDee,

Didn’t want to read and run, sending you lots of love right now.

I know financially things sound tough, but honestly I do believe people make it work. Have you looked at what you might be entitled too benefits wise? Tax credits etc? That would be a start and might make you feel a bit better if you are able to get some help?

I know the flat is a worry but you’re right, the baby will be ok in your room for the first year? Could you consider selling and buying a 2 bed in a different area where you might get a bit more for your money, or even renting for a period of time?

I’m currently trying for my first with hubby, and had the same financial worries/house worries but we are slightly different in that we have a 2 bed terrace, so do have room. What really helped us is that we wrote down all of our incoming and outgoings, what we were entitled too (only child benefit due to earnings) and what our finances might look like with Mat pay/childcare costs etc?

Of course you have other options you can consider also, but do have a good look at everything available to you both xxxx

You should be entitled to Maternity Allowance (£145ish a week) and potentially child benefit depending on your joint income.

As you’ve mentioned, one bedroom is fine for 6 months to a year.

I think it’s always a bit of a reality check, whether planned or not and as long as you don’t rush into anything, whatever you decide to do is fine!

I waited until I was properly ready to have my first at 31 and am so glad. My wait was more due to health reasons than financial, but still very much a practicality thing.

There’s no right or wrong, just what’s right for you.

Firstly, congratulations! The issues you mention can more than likely be overcome. As a previous pp mentioned, you are likely to qualify for maternity allowance. Alternatively, if you are employed by your own limited company you can claim statutory maternity pay through that. Depending on the type of work you do, self employment can be ideal when having a baby i.e. working from home and doing flexible hours would minimise/eliminate any need to pay for childcare. You may only need to take a very minimal amount of time off if your work is flexible enough to work around a newborn.

You would be entitled to child benefit of around £80 per month, provided neither of you earn over 50k per year in which case you would receive less (or none at all if over 60k). Tax credit entitlement can be checked here www.gov.uk/tax-credits-calculator

When you are ready to move you may be able to afford a bigger home if you move to a cheaper area, however bear in mind that you would be reassessed for mortgage affordability so any drop in your income would effect how much you could borrow. In this case, it may be in your interest to move now rather than after the baby is born. It's worth checking with your current mortgage lender whether you can port the mortgage to a new property and, if so, whether any fees would apply and whether they would reassess your affordability.

Hope that helps in some way, let us know how you get on 😊

Hi ladies!
Thanks so much for your replies.
I don't work from home, but can be flexible with hours a little, my partner has Tuesdays off and he works at a school so at least he'll be able to do school holidays! I would plan to take 6 weeks off after giving birth and then hopefully ease myself back in (all being well) with the help of family /partner and possibly the creche at the school (not sure how I feel about putting such a young baby in a creche though, may only be 1 day a week).
I'm not sure we'd already be in a position to remortgage /move house just yet as nothing in our finances has improved since getting the last mortgage.. We've only been here 7 months, can't bare the thought of moving again already! But will certainly have a serious talk with partner about that and get advice off parents etc too. We'd have to act pretty quick if we decide to do that! We are in the South East where house prices are ridiculous, we'd have to move a good hour away to reach slightly more reasonable prices, and that isn't really an option as I can't uproot my business like that, I'd be starting from scratch again in a new area which would be a huge set back. Plus we'd be further away from our family & friends which I think we'd find really difficult. (I know we'd probably make some nice new friends wherever we went, but still a big wrench!)
Thank you for the info about benefits /maternity allowance, getting £145 would be an amazing help! I would hope we'd be entitled to tax credits etc, but never trust we'll actually get the help.
We haven't told many people, but the ones we have have all said it'll work itself out somehow, I think I'll have to just put trust in the process a little bit, I am quite an organised person and like to have plans in place /know what's coming, but it's really hard to imagine what we will end up doing and what life is going to be like in a year or so's time!
Thank you all again xxx