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Original poster

Is Our Mortgage Sustainable? Advice Needed

385 replies

Gabaru · 09/02/2025 14:52

We are first-time buyers, and our mortgage for £575,000 has been approved. We are putting down a £11,000 deposit. My take-home income is £4,200 per month, and the mortgage repayment will be £2,430 per month.
Given the current cost of living, I wanted to ask if this setup seems sustainable.Any advice or insights from those in a similar situation would be greatly appreciated.

OP posts:
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7
Original poster
Gabaru · 09/02/2025 16:20

ViolinsPlayGentlyOn · 09/02/2025 15:35

You must be borrowing a seriously high income multiple with that take home pay. I wouldn’t risk it. It’s not so much the current payments, but what happens when the initial term comes to an end - you’d be very limited in terms of who would lend to you, so the rate could be uncompetitive. And you definitely couldn’t afford even quite a small interest rate rise unless your income increases. There must be cheaper properties available.

Its 5 yrs fixed rate. Got it 5.5x of my salary. wouldn't after 5yrs I might have paid some principle amount and my EMI will be reduced?

OP posts:
Toddlerhelpplease123 · 09/02/2025 16:20

I would say no.

Our take home is 6.5k household split between 2 so very tax efficient and eligible for tax free childcare. Mortgage just under £800.

We don’t scrimp, have an huge energy bill, childcare costs and renovating a house, have nice cars etc. So we could cut back.

But we don’t have anything left at the end of the month atm. We live a comfortable life in that we can go out and buy what we want when we want in shops, trips and meals etc. Not a luxury one where we can spend anything more than £500 on a purchase without thinking about it.

And we currently aren’t putting into savings or pension. But we have young kids and finishing the house so this is our spend era.

MissPobjoysPonies · 09/02/2025 16:21

We have similar mortgage and two incomes totally more than yours (about £1500). It’s so tight we can’t do anything - bigger house = bigger bills and costs!

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General money
TokyoSushi · 09/02/2025 16:21

Too high, our join income is just over £6K and our mortgage is £1269, to be honest even that feels high sometimes.

NoWayRose · 09/02/2025 16:21

How much do you normally spend per month on things apart from housing?

Also bear in mind how much things cost to fix - boilers, roofs, widows etc. When one of these one these inevitably goes you could really struggle

Original poster
Gabaru · 09/02/2025 16:22

rosemarycait96 · 09/02/2025 14:57

Our mortgage takes up about half our income (thanks to interest rate rises) and it is very, very tight with bills and petrol etc. Unless your income is expected to keep rising, I'd think hard about it!

That's if your whole income is 4.2k. Is there another income? Your partner?

Wife is searching for a job. She is not able to get a job

OP posts:
CissOff · 09/02/2025 16:23

Absolutely no way - that’s far too much of your take home pay.

aveenobambino · 09/02/2025 16:23

Sorry OP I think that's way too much

DuckbilledSplatterPuff · 09/02/2025 16:23

Did you see a financial advisor. It seems really high payment to salary ratio. I hope you've had proper surveys to check there are no structural problems which could affect the resale value.
Check the redemption penalty Is the interest rate fixed? or floating. If its fixed check how long you are fixed into the mortgage for. We once got stuck on a two year high interest rate, and couldn't get out of it whilst interest rates were falling.
Have a look at Martin's moneysaving website to compare your deal. and double check the small print of the proposed contract.
Do you have any plans if your income drops/rates go up? As in would you have room to get a lodger to bridge the gap if you needed to?

FlannelandPuce · 09/02/2025 16:24

I can't understand such a high mortgage offer on this size wage. It seems very irresponsible to proceed with this size debt on your wage. You would have bills on top of your mortgage payment which would wipe out most of what was left.
You have a very good deposit that in some places could buy a house outright, so use it to but something smaller with a smaller mortgage and enjoy your life.
This level of payment is not sustainable and is not creating security for your family

wipeywipe · 09/02/2025 16:25

Our take home is 6.5k household split between 2 so very tax efficient and eligible for tax free childcare. Mortgage just under £800.

You really should be paying into pensions & be able to save on that, it's like the other extreme.

AlexandrinaH · 09/02/2025 16:26

I’m surprised you managed to get that mortgage approved.

bigvig · 09/02/2025 16:27

Your wife can and should get a job if you really want this house. I wouldn't personally stretch that far.

Fundays12 · 09/02/2025 16:27

It sounds very high to me in comparison to your wage. It's pretty risky given the household only has 1 income. Is your wife able to work? Can she step into full time work if the worst happens and you loose your job or if your health takes a down turn? Your child is 13 is there any particular reason your wife is still at home? Personally I wouldn't be taking that mortgage on.

wipeywipe · 09/02/2025 16:28

@Gabaru I don't under how you can borrow so much tbh.

EnterStageLeftie · 09/02/2025 16:28

Your numbers don't add up (not just the deposit)?

5.5x Salary for Mortgage = £575,000
Salary = £105,000 gross (rounded)

Take home pay from £105,000 assuming 5% pension & student loan = £62,000
= £5100 monthly

(all rounded)
That's nearly £1k more than you say?

If you're putting more into pension you could reduce that down to increase your take home pay.

AlexandrinaH · 09/02/2025 16:29

It’s not sustainable. Our income is higher than yours and our mortgage is half that. We don’t live entirely comfortably but are happy. There’s no way we could manage a mortgage as high as you’re looking to take on even though we have a higher income and no other debts.

Can’t you buy something cheaper? You have a decent deposit.

And why is your wife looking for a job if she is not able a get a job? Isn’t that a waste of time?

Original poster
Gabaru · 09/02/2025 16:30

Florence19791 · 09/02/2025 15:40

Ah ok, that changes it a bit. Have you done a robust spreadsheet with income and outgoings. Things like council tax, food, cars etc. Will you have children in the next ten years etc with nursery fees. I think if it’s just you two and you are happy to sacrifice some quality of life for a nice house then it’s doable but if there’s going to be nursery fees in the mix I’d say it’s too tight.

Show quote history

I have not done a spreadsheet but what I have noticed is with my current rent of £1500 I am able to save around £100 to £200 per month from my salary with all expenditure. So I guess the deficit is £800 when I start paying my EMI. Not sure how the bank approved my loan when its clearly not possible with my in's and out's

OP posts:
AlexandrinaH · 09/02/2025 16:30

There’s a reason reputable lenders only lend 3/4 times your salary at the most. If you’re looking at going with a subprime lender, your interest rates will be higher.

AlexandrinaH · 09/02/2025 16:30

Gabaru · 09/02/2025 16:30

I have not done a spreadsheet but what I have noticed is with my current rent of £1500 I am able to save around £100 to £200 per month from my salary with all expenditure. So I guess the deficit is £800 when I start paying my EMI. Not sure how the bank approved my loan when its clearly not possible with my in's and out's

Show quote history

It really isn’t.

Shinyandnew1 · 09/02/2025 16:31

Wife is searching for a job. She is not able to get a job

Why? How long has she been looking?

Hairoit · 09/02/2025 16:31

Why so expensive? Are you buying in London or somewhere else insanely expensive? If not, surely £400000 would get you a decent 3 bed, even in the south?

Tiswa · 09/02/2025 16:31

I was out of work briefly and it was just doable with similar incomings and a 1500 mortgage

yiur wife needs to work and I would see what can be compromised on with the house

IkeaJesusChrist · 09/02/2025 16:31

Your wife needs to get a job, any job as that mortgage is not sustainable.

Gothamcity · 09/02/2025 16:32

It only leaves you with £1700 a month, to cover all bills, council tax, subscriptions, food, car running costs and commuting (if applicable), clothing, and all other expected and unexpected costs. I personally wouldn't be comfortable with that. Our mortage is about £600 a month, 2 kids, and husband takes home a similar amount to you, and I bring in another £1500, and we certainly aren't living in luxury, and have to watch what we spend each month. That seems a disproportionately high repayment, compared to the take home pay.