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to buy a house I can't afford?

(102 Posts)
blinkineckmum Sat 23-Sep-17 23:24:40

I am hoping to put in an offer on a house as it's the right place and right timing for various reasons. I am usually really cautious with money, and have a smallish mortgage on my current house. The house I want to buy is just about affordable, but I would double my mortgage debt and repayments. I could just about do it, but it's a huge house, and it would all be much easier if I rented out a room or even a floor. AIBU to consider buying this house, if I can only comfortably afford it by having to rent some of it out? Thanks for any opinions

delilahbucket Sat 23-Sep-17 23:25:43

Do you know if you can actually get a mortgage for it? If it is pushing yourself that much a mortgage lender is unlikely to say yes.

PurpleDaisies Sat 23-Sep-17 23:26:46

You'd be nuts to buy a house you can't afford now. Interest rates are low and will only go up. What happens then? You won't be able to pay your mortgage.

PurpleDaisies Sat 23-Sep-17 23:27:21

Can you even get a mortgage for it if it's such a stretch?

blinkineckmum Sat 23-Sep-17 23:27:22

Thanks. I don't have a mortgage in principle yet but I do think I would get it.

sooperdooper Sat 23-Sep-17 23:27:23

It sounds like you're pushing yourself too far financially tbh, will you even get that big a mortgage if you can't really afford it? Why do you want such a big house? Do you want to be stuck renting rooms to strangers forever?

TheBadTemperedLadybird Sat 23-Sep-17 23:27:33

Why do you want it? If it will make you happy and you can definitely afford it then do it

If you've got to sell first it'll take ages anyway

PurpleDaisies Sat 23-Sep-17 23:28:30

What makes you think you'd get it? Mortgage lenders are pretty cautious and we were surprised at what we could borrow (a lot less than rightmove calculators etc said).

GeekyWombat Sat 23-Sep-17 23:28:44

Would your mortgage allow you to have a lodger / rent part of it out?

sooperdooper Sat 23-Sep-17 23:28:50

What makes you think you'd get the mortgage? Lenders are very cautious about over lending now - they'd see immediately that youcshr really afford it

blinkineckmum Sat 23-Sep-17 23:29:59

Thanks Purpledaisies. I have been paying childcare since I got my first house, at many £100s per month, and will be doing so for the next few years (3 kids aged 3 to 0), so I am counting on being able to work more and pay out less once the 5 year fixed rate ends. But a really good point I need to consider this more actually. Just to clarify, I do have a DH in full time employment. I work part time. We have been able to overpay our mortgage for the past 3 years.

blinkineckmum Sat 23-Sep-17 23:33:12

Thanks everyone. Maybe I am being overcautious. We haven't got a MIP yet but have had some advice and this house is within what we were advised we could borrow. Maybe I am just being overcautious as our current house is so affordable.
I don't need a huge property. It just so happens that this big house is only slightly more expensive than the other, smaller houses we were looking at. We need to upsize as our family is growing, but this house offers potential to rent out a room/ floor.

blinkineckmum Sat 23-Sep-17 23:35:41

Do you want to be stuck renting rooms to strangers forever?
Yes, this is my concern. You are all making me think twice. Thank you

elephantoverthehill Sat 23-Sep-17 23:36:29

Please take into consideration the more expensive fuel bills, decorating and furnishing cost etc. It's not just the mortgage.

Getabloominmoveon Sat 23-Sep-17 23:38:04

We maxed out our mortgage earlier in our marriage and made it work by having a lodger. It worked out fine, our wages rose, childcare costs went down, and many years later we became godparents to the children of one our lovely lodgers.

AdoraBell Sat 23-Sep-17 23:40:54

Have you written the figures down? I mean every figure, including repayments at much higher interest rates. Council tax in that area, on that property.

How exactly would you afford it now? Income and outgoings, putting money aside for something like a new boiler because it's finally given up in the middle of winter.

Sit down with DH and go through the figures realistically.

blinkineckmum Sat 23-Sep-17 23:41:16

Thanks Getabloominmoveon. First positive comment! It's all a bit scary, but we thought that if the worst came to it, we could sell, and would have a more valuable house to sell than the one we're in now. But I am not confident with money and have always been very cautious and never ever in any trouble, so I am unsure.

Sundayspilot Sat 23-Sep-17 23:42:03

I would also urge you to reconsider, OP. I lived through the American housing crisis and watched so many people lose their homes after overextending themselves. It's not something I would wish on anybody.

PurpleDaisies Sat 23-Sep-17 23:43:00

It's all a bit scary, but we thought that if the worst came to it, we could sell, and would have a more valuable house to sell than the one we're in now.

That's a really bad back up plan. Think of the all the fees you'll pay to move again, the upheaval and what happens if there's no buyer for your house? You'll end up getting repossessed.

halfbuffy Sat 23-Sep-17 23:43:23

I'd pop a third into savings, a third to pay off some debt and the last third to get some lovely things for the house!

halfbuffy Sat 23-Sep-17 23:43:51

Oh sorry wrong thread....not sure how that happened!

blinkineckmum Sat 23-Sep-17 23:44:42

Thanks AdoraBell. We have done that. All based on cautious estimates of what we could get for ours, having to offer asking price etc. As I said, we have been able to overpay despite me being on mat leave/ being part time/ having childcare costs for the past 3-4 years, so we think we'd be ok. And we've left £20k aside for home improvements/ unexpected costs etc.
The higher bills are a good point though elephant. Thank you all.

HelenaDove Sat 23-Sep-17 23:46:56

Take into consideration boiler insurance.

Ive seen quite a few mortgage holders on here posting on threads telling social housing tenants how lucky they are to get their boilers fixed "for free" and how unfair it is because mortgage holder cant afford it.

If you cant afford things like boiler insurance then you cant afford a mortgage.

blue25 Sat 23-Sep-17 23:49:07

Think very carefully. You could be under huge stress to keep up the repayments when interest rates rise. What if either of you lose your job? Moving costs are huge with stamp duty to take into account. A bigger house is always nice, but if you're struggling to pay the bills, you may not 'enjoy' the house anyway.

Justaboy Sat 23-Sep-17 23:52:39

Try to see if you can get a mortgage approved there is a LOT of fiscal stress testing going on now.

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