May I add that the waste cutter makes such a difference when overlocking as the blade trims off microscopic pieces of thread and it then just drops into the waste bin. Yes you can do without and then place a plastic shopping bag so that it is open under the front suction caps, and the threads just fall into that, OR you can make a tidy out of fabric and this means the machine sits on a flap and the pocket at the bottom is open for all the debris to fall into.
For what it is worth Acorn, a free arm is not really essential, there are ways around this, and as you say you want to be making a lot of little girls clothes then the free arm would probably be too big anyway. I would go and try a few out if possible and for me sound is essential, the Bernina ones literally PURR quietly away compared with some of the cheaper ones. Also remember that the little girls will grow so you could be making small clothes for quite a long time yet, and as they get older possibly jeans and other trendy garments will be requested, so you need a machine that is going to see you through all sorts of garments for a good few years.
Have you gone looking at the SMD site, sometimes they have demonstration models of machines that have been used and re boxed and thus they sell these off at a favourable price. How far is Wrexham from you? Also remember that SMD often include a goodies pack which consists of something like 50 spools of thread, and five pairs of scissors, plus other things so if you are new to overlocking, the thread set alone would be worth it and might well see you through for a long time. Yes I know the thread spools will all be different colours/shades, but you can wind off on to bobbins if you are only wanting small amounts, or save your empty thread reels and carefully wind thread on to these.
Good luck with your quest.