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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To think this is a massive mortgage?

139 replies

catsbananas · 04/05/2016 20:06

Just wondering if I am completely out of touch here. My sister emailed me today with a link to a house she is buying. They are moving from a house they have just sold for £250k, a pretty ordinary three bed semi. The new house is a detached five bed, which they are buying for £560k. I knew they wanted to move to something a bit more "forever home" but am honestly shocked at the price. Both work in the public sector, he in a managerial role in the health field on about £70k and she as a lecturer on about £50k and they are both 40. They have accumulated about £120k worth of equity in the old house. Yes, I know it isn't really any of my business but I was surprised that they are taking on this kind of debt. I wouldn't be able to sleep at night and the combined income of me and DH is only a bit lower. AIBU or is this a massive mortgage?

OP posts:
Original poster
catsbananas · 04/05/2016 20:34

Maybe my attitude is too cautious. I just thought if one of them lost their job (quite possible in the public sector these days) then that could leave them in a tough situation. We are keen to pay our mortgage off early and have a small or no mortgage by about 50 so I guess their priorities are just a little different.

OP posts:
Topseyt · 04/05/2016 20:35

Sounds doable to me.

They can easily cover it, and will be able to over pay, thus clearing the balance much more quickly.

ClopySow · 04/05/2016 20:35

aibu to think it's not your business to be posting on the internet

Aibu to think it's not your business what she posts on the internet. Aibu to think it's not my business to comment on what's your business. And on and on and on...

dillydotty · 04/05/2016 20:36

They may be borrowing more as they will have at least 18k of stamp duty plus agents and legal fees. That's before the removal costs too.

ThroughThickAndThin01 · 04/05/2016 20:37

Our mortgage at its highest was £495,000. We've got it down from that now.

If jobs are secure, that's the only thing that matters as it makes it affordable.

Ackvavit · 04/05/2016 20:37

Meant to add, it's often a status issue with people. I love where I live and there is loads to do , my friends are all close by, lots for kids to do when they were younger etc. However, some people socialise in groups where what you drive, where you live and where you holiday means a lot to them. Perhaps they are in that kind of horrid circle.

Original poster
catsbananas · 04/05/2016 20:37

Thank you ClopySow and I did state clearly in OP that its none of my business. I'm not judging or interfering, more questioning my own shocked reaction (which I have not shared with my sister).

OP posts:
Original poster
catsbananas · 04/05/2016 20:38

A few people have mentioned status and yes they are quite caught up in that. I think they feel the need to have "made it" and to make a statement with the house. I'm not judging them for that but they are in that type of circle.

OP posts:
Elle80 · 04/05/2016 20:41

YABU and dare I say rather jealous but trying to make it sound like concern. It's none of your business

bibbitybobbityyhat · 04/05/2016 20:42

Yes, it seems a horrendous amount to me. What if one of them loses their job? But then I do live in London where everyone except the super-rich lives in the smallest property they can squeeze into. There is very little of this concept of "forever house" in the capital.

Moreisnnogedag · 04/05/2016 20:42

No I get what you're saying. My friends have just bought a house which is close to a million pounds! A million!!! I couldn't sleep with that amount of debt. I fret over my £200k mortgage.

Northernlurker · 04/05/2016 20:43

Don't kid yourself op - you jolly well are judging them! You think they are making a foolish financIal choice and are caught up in the status of having a big house. You may well be right.

meddie · 04/05/2016 20:45

My biggest fear would be potential interest rate rises. I still have memories of the 80's and interest rates going from about 6% to 15% in a short space of time and it crippling us financially.

MrsDeVere · 04/05/2016 20:46

This reply has been deleted

Message withdrawn at poster's request.

Hellochicken · 04/05/2016 20:49

I too think it is massive mortgage. We have similar salaries (a bit higher) but only half the equity. Bought a house for half that price. I worry about unforseen job loss/illness and future costs/being trapped etc. We would have to be able to afford it on 1 salary only. Also the amount of interest we currently pay pains me, I just couldnt face paying more (but then you could say we could have spent less on a house too).

seafoodeatit · 04/05/2016 20:52

YABU, if they've been approved for the mortgage then the bank has deemed it affordable for them. Property is expensive and if they want to upsize then the cost of the house will be secondary to their long term goals. We're buying soon and will have to borrow about 4 times DH's salary because we couldn't afford a house otherwise but our mortgage will still be less than our rent!

katsopolis · 04/05/2016 20:53

15% interest Shock

seriously considers selling both mine and DHs flat and renting

JoMackl · 04/05/2016 20:54

Expressions that need to die a grim death no. 67573:
"Forever Home".

TeddTess · 04/05/2016 20:56

A £440k mortage is TINY these days.

as a % of their £560k property it is under 80% which is ok.

YABU

Sweettuth · 04/05/2016 20:56

jo Grin Chocolate

FoodieToo · 04/05/2016 20:56

We have similar income but bought a house for half that. I honestly could not bear to owe that much money. Looking forward to being able to spend the ' mortgage' money when we are 50 and have the mortgage paid off.
I think it's such a drag paying off huge sums every month. And so much of it is interest. And until you are 65??
Most people around us have traded up but we really love our house and will live here forever.
So yes I think it's a huge debt but if they are happy with it and they obviously can afford it good luck to them.
But yes job loss and illness worries would stop me.

Whatthefoxgoingon · 04/05/2016 20:58

Haha I hate forever home too!

I had a mortgage of £1.8 million once so I'm not even blinking at this amount. I wasn't sad to see the mortgage go though, no one wants debt after all.

TeamSteady · 04/05/2016 21:00

Meh... we moved this year and have a similar sized mortgage... circa 480k... on a 535k house, household income of a bit less than your sister, only DH works. Our house is (sadly!) no mansion, just a regular 3.5 bed "normal" house.... but we live in the SE, close to commuter belt (but a 20 min drive out as the same house closer to the main station with fast trains would have added another 100k on to the price).

I like our house very much, but it's not our "dream" or "forever" house. It ticks the boxes in terms of size and location, the local schools are good and it's only 30 min from where I grew up/have family (but can't afford to live there!!)

mrwalkensir · 04/05/2016 21:02

blimey TeddTess - in what world is a £440K mortgage tiny? Guessing that must be London or similar speaking?

TeamSteady · 04/05/2016 21:02

But i suppose thinking about it, we are younger than your sister- 31 and 32 so (sadly) another 30+ years of working to pay it off. Mortgage payments are currently £1950ish but will go up in 3 years to £2300 unless we get a new deal.