Ooo I do remember hormones in pregnancy - awful things!
The thought of having 2 young children and 2 mortgages makes me shiver. Owning property isn't the be all and end all. As your husband says, with only the one mortgage you can pay it off more quickly and still afford to spend plenty of time in Corfu. If you have 2 mortgages you risk twice as much financially (not to mention your sanity).
You're worried about the property prices rising in Corfu. I suppose they are increasing a little, the cost of building materials have certainly risen. But having lived here for a year or so now I can't say that they've really shot up. Property here is, in reality, worth what the vendor will take for it. I know that sounds silly, but in the UK you can say that, for instance, one 3 bed semi in any given area is worth much the same as the next. Here it can be very different. 3 years ago we bought an old 2 bed cottage. Earlier this year we bought another 2 bed cottage, 100metres away from our existing one, with similar floorspace, facilities and in similar condition, and paid around 1/3rd of the price we paid for the first one!
When the time is right, you will find your corner of Corfu if that is what you still want by then. In the meantime my advice is get your existing mortgage paid up asap, enjoy motherhood (and believe me, having 2 children is a whole different ball game - just the one is childsplay by comparison!), have some wonderful holidays and don't put yourselves through more stress than you need to!
Good luck with the new addition to the family, and the fixed rate!