After seven miscarriages Grayson and Perdita turned to surrogacy to have a child. Katie offered to help but soon regretted her decision after realising how unstable Grayson and Perdita's marriage was. Katie threatened to abort the baby after Perdita left Grayson for Matthew King but she kept it grew closer to Grayson. Perdita attacked Katie when she discovered Katie and Grayson were in a relationship and planed to raise her baby together.
In March 2008 Katie found out she was carrying a boy. Grayson took out a restraining order against Perdita, telling Katie that it was in the best interests of the baby but Grayson and Perdita got back in contact after Pertida filed for custody of their unborn son. After realising that there was something up, Katie confides in Chas Dingle and she suggests she get away. Katie planed to go to London to have the baby and put it up for adoption. She cons Grayson out of money and as she plans to go to London to have the baby but she ended up giving birth to a little boy in the back of Matthew's car at the roadside. She signed over all of the rights over to Pertida and gave her the money to get away with baby Harry.