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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
mn1974 · 09/02/2025 16:51

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

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You answered your own question here. You can't afford this mortgage.

I am assuming you are using all your savings for the deposit so you won't have any money left to fall back on if something unexpected happens and you lose your income for a while. You don't need this stress.

I would say keep renting until your wife finds a secure job. Then look for a house where your mortgage payments won't be more than 35% of your combined net take home income.

historyrepeatz · 09/02/2025 16:52

Is your wife just out of work at the moment or has she been a stay at home mum since your son was born? When she finds work will she be contributing to the household or will her wage be her own. Another wage even at the minimum to contribute changes a lot. If she is going back to a career with a good wage or earning potential then things look better.

Dyslexiateacherpost88 · 09/02/2025 16:54

Nope. Mortgage that size, I'd assume large outgoings too. Our house is similar price, gas/ electric/water/c tax adds up to over triple what we paid inn house 1/2 the size. We can afford it, but its been a huge shock and i felt happier in a smaller house.

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Engleberthumper · 09/02/2025 16:54

You might be able to afford it if you divorce from your wife. One less person to support and you can even take in a lodger?

Charlize43 · 09/02/2025 16:54

It's not just about the mortgage, you also need money for the ever increasing bills. Thames Water is fighting for a 58% increase on bills. That idiotic Sadiq Khan will probably want Council Tax up by 8% so he can rename a few more stations...

ClearHoldBuild · 09/02/2025 16:55

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

Based on this reply, maths isn’t your strong suit.

DaftVadar · 09/02/2025 16:56

No this does not sound sustainable.

You need to seriously stress test these numbers. Whilst you may be on a 5 year fixed, you do not know what will happen in those 5 years and what interest rates may be like at the end of it. A lot if people who have come off their fixed rate in the last 2 years have been finding this out the hard way.

You also need to factor council tax rises, breakdowns, what if the roof needed fixing? If you enjoy a holiday every year then are you aware this might no longer be affordable? ,

DoYouReally · 09/02/2025 16:57

If your monthly regular savings and rental amount aren't more than your repayment, then no, it's not sustainable.

Florence19791 · 09/02/2025 16:58

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

Sounds like you’ve answered your own question. We are saving approx £1500 per month after rent and still worried it’s not enough.

Original poster
Gabaru · 09/02/2025 16:59

DragonFly98 · 09/02/2025 16:06

No it’s a ridiculous idea. On that salary I would be looking at 300k max.

There are no houses for 300k nowaday in London. Decent house are starting from 500k and difference in EMI for 575k and 500k is around £300

OP posts:
HellofromJohnCraven · 09/02/2025 16:59

Hell no. I can't believe you could borrow that.

HelloNorthernStar · 09/02/2025 17:00

Not sustainable at all. You need 2 incomes or you need to increase your sole income considerably or a cheaper house.

CraneBeak · 09/02/2025 17:01

Onemorepenny · 09/02/2025 16:17

No - your mortgage repayments should be no more than 25% of your take home, less even given you're the only one earning.

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Why?

My repayments are about 45% of our take home salary. What's wrong with that? My rent was about 40% of our take home salary before buying, at least this way you end up with a house.

The 25% mark would make home ownership unaffordable for many many people.

Original poster
Gabaru · 09/02/2025 17:02

ThatsNotMyTeen · 09/02/2025 16:11

Blimey, that’s a lot. So £1800 available for all other bills, food, transport etc?

Yes .. can we manage with that? wife and a 13yr old son. that's the current situation with the current house market. Hosue prices have gone up and cost of living

OP posts:
Unexpectedlysinglemum · 09/02/2025 17:02

Janedoe82 · 09/02/2025 15:31

You can’t afford it. Wife needs a job

I agree. It would be affordable if she worked minimum wage

Unexpectedlysinglemum · 09/02/2025 17:03

I'm really surprised this was agreed with your wife being a dependent you need to buy everything for

ViolinsPlayGentlyOn · 09/02/2025 17:04

Gabaru · 09/02/2025 17:02

Yes .. can we manage with that? wife and a 13yr old son. that's the current situation with the current house market. Hosue prices have gone up and cost of living

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You can’t manage on that if you’re only currently saving £100-£200 on a £1500 monthly rent.

You need to look at different areas if you want a house. Or look at a 2 bed flat instead, which would be more affordable in London.

Jggg · 09/02/2025 17:05

I'm honestly surprised you were approved for such a big mortgage on your income alone. What is your plan if you lose your job or get sick? Do you have insurance in place so you don't lose your home at the first struggle? Have you run your budget and it allows you to live the life you want? Do you have enough left in an emergency fund to cover repairs and surprise expenses?

My OH makes more than you (5k a month after tax and pension) and our mortgage has less than 200k left and payment is half of yours. The mortgage feels suffocating, mainly due to the massive amount of money we are hemorrhaging on interest every single month. I'm not going to pretend that we struggle financially because that would be out of tune consider that many people live with lot less, but money was a bit tight when we moved fe years ago due to general increase in cost of living and higher expenses. (I do also work but lot of that is going towards childcare, which I presume would not be an issue with a stay at home wife. If the wife has health issues that would prevent her from taking care of kids at home then this plan would not be affordable).

Gettingmadderallthetime · 09/02/2025 17:08

Gabaru · 09/02/2025 17:02

Yes .. can we manage with that? wife and a 13yr old son. that's the current situation with the current house market. Hosue prices have gone up and cost of living

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Are there other ways you can get income to help until your wife can get a job. Airbnb or everyone lodger?

Jenkibubble · 09/02/2025 17:09

ViolinsPlayGentlyOn · 09/02/2025 17:04

You can’t manage on that if you’re only currently saving £100-£200 on a £1500 monthly rent.

You need to look at different areas if you want a house. Or look at a 2 bed flat instead, which would be more affordable in London.

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Yes , one of the commuter towns could be an option - Essex / Herts / Kent ?

thrifty24 · 09/02/2025 17:10

What would happen if the unfortunate event you were made redundant?

Jggg · 09/02/2025 17:10

CraneBeak · 09/02/2025 17:01

Why?

My repayments are about 45% of our take home salary. What's wrong with that? My rent was about 40% of our take home salary before buying, at least this way you end up with a house.

The 25% mark would make home ownership unaffordable for many many people.

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The difference is that as a tenant the LL covers cost of any repairs, which might add up despite having insurance. E.g storm blew off part of our garage roof and in other storm part of neighbors awning smashed into our patio doors shattering the glass. insurance didn't cover either because their estimate said the wind speed in out area was 1mph below what they would classify as a storm. If you are spending 45% of your income on mortgage you likely won't be in a position to save a massive emergency fund.

rainingsnoring · 09/02/2025 17:11

Gabaru · 09/02/2025 16:59

There are no houses for 300k nowaday in London. Decent house are starting from 500k and difference in EMI for 575k and 500k is around £300

Show quote history

Then you can't afford to buy in London, particularly not on one wage. Most people in London have two wages and many have large gifts from parents too.
You need to lower your expectations, move, continue to rent or your wife gets a very well paying job.

onwards2025 · 09/02/2025 17:11

BearyNiceEars · 09/02/2025 16:51

Household income after tax here is £6k, mortgage is 12% of income, it’s just gone up from 10% due to renewal and comparatively higher interest rate vs last time. I would start to feel uncomfortable if it were higher as it would hamper the ability to save, invest and enjoy life.

if you are willing to really tighten the belt for 5 years (sounds v.difficult with a teenager!) and guarantee to be in a better position when the mortgage comes to renewal, then possibly its doable, but you have zero margin for error and the world has been fairly volatile over the last few years.

its not a risk I would take personally.

Whilst I agree that the OP's proposed mortgage is high risk and likely not sustainable or affordable to them - your position is the other end of the scale for mortgages and you are in a very fortunate position to have such a low mortgage to salary split, it's not reflective of the average

smilingeleanor · 09/02/2025 17:12

I earn about the same as you and no way would I be able to manage that mortgage payment. You could just about do it each month but there is no wriggle room at all - it's sustaining the amount and very very very frugal living

if you wife worked as well then yes - a FT minimum wage job would bring in an extra 1600 which would make it viable and give i the wriggle room

she needs a job