Crippling mortgage rates

[Justanotherusername27]

Looking at a 350k house with a 60 deposit. Collectively on 85k. The mortgage will be 1400 a month. We will be debt free and have 4400 a month in our income with two kids. Has anyone managed such a hefty mortgage with an average income? We don’t spend stupid money on anything but it seems ginormous compared to our 620 mortgage now 😩😩

620 is fairly low for a mortgage.

Are you paying nursery fees as well?

I think £1400 a month on a £290,000 mortgage is actually quite reasonable at the moment! Mine has gone up to £1100 a month for £182k 😳

It’s still a lot a month though, you’ll be left with £3k a month after, do you pay for childcare too?

I think you need to be left with around £400 a month spare after all your budgeting to be truly comfortable as this will cover any inaccurate calculations/emergencies/fun money and anything you’ve forgotten.

It was for a 125k house at 4.74 interest rate. We were very lucky! And 1100 for 184k house is actually insane! In terms of nursery she will be going 1 day a week but it will be covered by government but factored in 150 just in case. It’s just such a big leap!

Wow that's an incredible mortgage!

1400 a month sounds more normal to me 😂 (but I am SE based so maybe thsts why).

How old are the kids? Do you have nursery bills to pay too? What are you other outgoings like? Definitely doable me thinks.

I think it will be fine as long as you haven’t got any nursery fees. I’d just make sure you are putting money away each month for the big expenses (ie house insurance, car repairs etc) because I don’t think you’ll have a huge amount of wiggle room.
Presume things like cars will last you a couple years?

Mortgage rates are still historically low, at the moment! It's the value of the property that makes the repayments high. You need to factor in an increase of (probably) up to 5% over the next few years to decide whether a house is affordable.

As a percentage of income it’s about average I think.

It will feel painful but… if you want a bigger place, IMO interest rates are unlikely to drop much in future.

Whats the likelihood your wages will increase?

I'm a single parent earning a similar amount and when I have to pay ex husband his share of the equity I'm expecting my mortgage to go up to £1400. I have 3 children - 2 of whom are under 5 and I have to use before/after school childminder for all 3 which is around £1200 a month ON TOP of my mortgage....so yes it's certainly doable

the mortgage will be fixed for 4 years (we did fixed rate back in Jan for 5 years so will have to stick - didn’t plan to move).

My OH wages will probs go up. Mine not so much as I’m working 4 days so I can be with kids. Planning one more baby in the next few years too…

Im north east so it seems astronomical to all my friends/family —- maybe they’re just lucky!

OH gets car through work and we have a 16 plate jeep between us which is starting to go wrong. Looking at trading it in 🙄🙄🙄 bad timings or what! Deciding between fixing it at 2200 or just accepting it’s over!

kids are ten and 9mo x

We have the same income, and a mortgage of £290k at £1400pcm and 2 kids in childcare. It’s tough but manageable; if we didn’t have the kids in nursery though we’d be absolutely fine - that’s the killer , not the mortgage.

It's a good deal assuming it's not an interest-only mortgage. But it's a large proportion of your income. If it's not fixed rate and long term, I'd be pretty worried.

That’ll be 4 years at 4.74 - scary and grown up stuff!

My mortgage advisor said rates are looking at coming down in 2 years.