AIBU to take out this mortgage?

My son bought a house at 320k recently buy with a much bigger deposit ( around 100k)
he and his partner pay 1100 a month
it’s a forever home though and they won’t have to love unless they moved city

They aren’t on particularly high wages but like you they aren’t planning any kids at all

Tp rent the same style house would easily be around 1800 a month

They overpay by 100 a month and they have a five year fix

They have been lucky though as I bought them pretty much everything they needed to furnish the house so they haven’t had that expense
but the house hasn’t needed any work doing to it

Go for it.
When I bought my 1st home in 1970, I did all my sums very carefully.
I couldn't afford it, but I went for it anyway.
It meant a lot of sacrifices, but it was the best thing I ever did.

That's not true. And a 5 year fix is a terrible idea because there's no way the rates will do anything but drop over the next 2 years.

We have just took on roughly the same ....1500 a month for five years fixed ......we are late 30s .... you will be fine and congrats on your new home !!!! Exciting

Seems OK to me.
We always spend a third of our income on the mortgage.

You should definitely go for it. With regards to the 2 year fixed or 5 year fixed, a lot of it depends on how you both feel about knowing what your payments will be for the next 5 years or willing to remortgage within 2 years. Do you want that stability where you don't have to think about the mortgage again for a few years or are you willing to put the grunt work in and do it all again in 2 years? Remember, there may also be a mortgage fee when it comes to remortgage.

I personally would go for the 2 year deal. Then when it comes to remortgage, reduce the term if possible. Two years gives you the opportunity to see how the land lies and get a feel for owning your own property and all the stuff that comes with it, as well as added flexibility. Many congrats!

I would 100% go for it, when we bought we did not have the option for less than 10percent LTV. It just was not available I think its so much better you get on the ladder as soon as you can good luck OP 👍 and you have done so well saving so much well done 👏

I would go for it

While you've not got children is the best time to buy a house

Yes the mortgage is expensive but that's just the way it is now

In the long term you'll be quids in, and hopefully by the time you remortgage you'll have some equity/savings/improvements done which will reduce your LTV

Best of luck

I thought vets were one of those professions where they don't earn as much as a lot of people think and less than other comparable professions like GPs and dentist, so most don't earn anywhere near £50k and the conditions are worst because they're more likely to be bitten, scratched or shit on by their patients and there's more unsocial hours work. It wouldn't be surprising if the HGV driver partner earns more, despite being much quicker and less competitive to get into the profession.

@helptodecide it sounds totally doable to me and very exciting!

One suggestion though, you say a 5 year fixed will be £200 a month cheaper - if you stay on the 2 year fixed you will be paying an extra £4800 in that 2 year period than if you took out the 5 year fixed.

Have you got the keyfact sheets for both? Maybe have a close read and see which one would work best? If you can pay the £1600 a month comfortable (which I can't see why you can't on the figures you've stated), maybe take the 5 year fixed and over pay £200 a month, that will reduce your capital quicker.

This is true, I guess I've only seen established vets!

There are people who went for 2 year deals 3 years ago who are absolutely kicking themselves (and were probably poorly advised) because they're now facing much higher rates when they could have been locked in at 1-2% for the next 5-10 years.

As a PP has said, expected rate drops are included in 5 year fixes, which is why they're cheaper than 2 year fixes. If they take the 5 year, they're already ahead, and rates will have to drop a lot to catch up on how far behind they are at the beginning by paying an extra £200 pm for the next 2 years. And that's before you account for paying extra fees because you change your mortgage more than twice as often.

It sounds like you've done really well at only 24 OP, go for it, good luck!

Wow, we had to find 40k it was a struggle to scrape it together and a lot of money to us we almost lost the house we wanted but we managed, In the UK they are so strict on everything they offered help to buy scheme but did not want this and so glad we didn't would have been in a mess now if we did x

On the 5 vs 2 year deals, lenders are already baking in their expectations of future base rate decreases into their pricing. That's why the 5 year deal is at a lower interest rate than the 2 year deal. By the time you refinanced the 2 year deal, the interest rate curve might have changed- even if base rate is lower, the lenders might then expect future increases in rates and would reflect that in pricing.

I'd go for the stability of knowing you should be able to meet the repayments for the next 5 years and not risk a payment shock after 2 years.

Buying a forever home as your first home will save money over time in legal fees, moving costs, and stamp duty, plus estate event fees. It sounds fine assuming you aren’t planning to start a family in the next couple of years (get a good savings cushion and reduce your outgoings first! Eg pay off the cars).

For reference, I am a single parent with a lower income and a higher mortgage, and I manage. Mind you we don’t take expensive holidays or eat out, but that’s because I prioritise things like DD’s swimming lessons. Honestly, it sounds fine.

Makes sense - I guess you're paying student loans too which is impacting your net pay? I've never met a Vet on less than £50k which is why I was a bit confused. Go for the mortgage- 2 years is correct in this climate. Congratulations on the house 🏠

@Mummy2mybear I underwrite mortgages. We offer max 95% LTV. It's all I'm looking at lately.
Have to be first time buyers and have to apply via advisor or broker. Can't apply direct
Need a good whole of market broker. Quite a few high street lenders offer 95%

£4500-£4800 between you as a HGV driver and a vet? Do you both work part time or have large student loans etc as that's low take home payfor those two occupations. In regards to your actual question though - you'll be fine. P.s I'm an ex mortgage adviser.

Sounds OK to me.
Your salaries & the value of the house will in all likelihood increase giving you more equity in the house and a better LTV for the remortgage

35% of income on the mortgage is OK.

If you are paying £800 a month rent and you are saving £800 a month that's the mortgage covered. You have a pretty high monthly income and secure jobs so it seems fine to me and as others have said if it wasn't affordable the mortgage company wouldn't have offered you the mortgage they are very picky these days.