well i think you said your living with your mom who rents a 2bed flat ? if she can get permission and a letter off the owner stating that you and your husband can live there that should sort your accomodation out, i don't think it will be classed as over crowded becuase a baby is not counted when working out if your accomodation is over crowded.
you said i think you had sayings ? £2000+ ??
your could ask your mom also to provide 3rd party financial support ( if they accept it) as well as supporting your accomodation..
you really need a job thou, but you might be lucky and get it without a job, but more risky,,
