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Can we afford a new house?

(9 Posts)
Chellors123 Sun 27-Dec-15 10:43:11

Hi

Contemplating moving, lived in current house for 5 years never really settled, it's functional but never felt like home and quite a few things would change next time round i.e driveway/garage not behind house, not close to busy road, larger garden (it's small) so all things I can't really change and to be honest my heart has never been in improving this house.

At the moment we are comfortable and what worries me is we would need to increase our mortgage to £1300 and will use half of savings to move here's our finances

Take home 5.3k
Current mortgage 1k
Household outgoings £1.5k
Savings £45k
No loans or credit cards
2 kids age 5 and 8!

I know my hearts not in this house and DH and I both agree it's not our forever house but my head says the sensible approach is to have the financial comfort. Would appreciate any advice to help 2 indecisive people make a decision!

Choughed Sun 27-Dec-15 10:55:56

Sounds eminently doable.

Is your employment secure?

Do you anticipate any major calls on your income/savings in the near future?

SueDunome Sun 27-Dec-15 11:01:18

So, currently you have 2.8k per month disposable income and, if you move, you will still have 2.5k per month disposable income, but your savings will have dwindled to around 20k?
If this is correct, of course you can afford to move and it could take you less than a year to replenish your savings if you wanted to.
Your children are quite young. As they get older, they will need more space so, if I were you, I would go for it.

Chellors123 Sun 27-Dec-15 11:58:50

Hi

Thanks for your replies, have worked out outgoings based on main household bills/ins etc, petrol, food,mobiles but not going out/takeaway/clothes and kids cost (school trips etc)

Jobs are probably as secure as they can be with anyone, don't anticipate having to dip into savings unless in an emergency.

£1300 just seems like a lot of money but we are in the south east and property prices are ridiculously high and I am thinking it would be better to make the move now (am in early 40's) rather than in say 5/10 years

Viviennemary Sun 27-Dec-15 17:35:21

You can easily afford it on what you earn now. If you are both prepared to carry on working and your jobs are secure. I'm cautious but even I think you have more than enough money to substantially increase your mortgage.

Titsywoo Sun 27-Dec-15 17:37:49

Yes easily. We got a mortgage at £1370 a month with no savings and on a bit less disposable income than that.

specialsubject Sun 27-Dec-15 19:53:02

sounds good - but how long is the fix on the mortgage?

When the rates go up, you can bet that the mortgages will rocket even though savings interest rates won't.

Blu Sun 27-Dec-15 22:29:01

You seem to be able to afford it easily.
Your household outgoings seem high: ours are less than £1200 incl all food, all direct debits for bills, all DC related expenses (incl clothes) all family days out / meals out.
But excl car.

House prices in the SE will only go up, why not do it sooner rather than later, get the benefit now, and put all your maintenance and upkeep money into a house you love?

JustWantToBeDorisAgain Sun 27-Dec-15 23:19:08

Do it now, we are moving but dh's age us now working against us ( he's 48) as he's currently the main earner we are limited on the length of mortgage we can have due to retirement age ( would hope to gave mortgage paid off before then!

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