I will never get a mortgage like this again, would you go for it?

[Etei]

I secured a rate of 2.74 which I think has now gone up. The house sold for 480 and I have around 180 equity. The mortgage repayments will be around 1k a month. This is huge to me, if I stayed in my current place it would be 450, with only 100k remaining (I’d be on a slightly higher rate as not secured it yet).

The plan was that me and DP would repay the mortgage with me and we’d both live there. I’m pregnant so I won’t be able to get this mortgage again. DP can’t be on it as he has his own place and it would complicate the status of the place ie make it a buy to let.

We’ve broken up. I’ve calculated he will have to pay around 700 in maintenance. He’s very work obsessed so I can’t see him changing jobs though it’s possible. I can pay this without him but it would be tight, leaving me around 500 a month spare for food and 200 for bills. I only have 15k savings. Maternity is covered.

What would you do? If I don’t go for this now I have no means to save for more deposit when prices go up, as they will eventually. I also probably want to cut hours (above calculations are based on cut hours) and wouldn’t get the borrowing at that point. I would then be stuck in a 2 bed place for a long time.

Have some family money but don’t want to rely on that as feels very unfair. Not sure what to do? The new place isn’t huge but means friends could stay and there’s room etc.

Good point. Spare room means an au pair is an option.

I absolutely would! With inflation salaries will go up fairly rapidly over the next couple of years. Potentially you could have lodgers.

yes it will be tight, but if you work super hard and pay off as much as possible as quickly as possible then you will not regret it.

How big is your 2 bed? Does it have proper reception rooms and good sized double bedrooms?

There’s so much worry about being ‘stuck’ but trust me. If you already have an asset that you can afford , you’re anything but. You can always buy a bigger 2 bed, or one with extension potential. You can also save the deposit with the £££ you would have spent on the mortgage.

We are due for a crash so prices are going to go in the opposite direction anyway.

Of course the level of financial risk is up to you, but there are a lot of unknowns. Having a child alone is already a big life change and expensive endeavour. Adding financial stress isn’t a good idea.

Go for it. You can always get a lodger or take in students to help with bills.

I absolutely would! With inflation salaries will go up fairly rapidly over the next couple of years

They shouldn't! That'll just lead to even higher inflation.

We are due for a crash so prices are going to go in the opposite direction anyway

Yeah right 🙄