Just taken on a mortgage...reassure me?

[FollowYourOwnNorthStar]

I am incredibly excited - I have just bought my dream home. It has been touch and go for awhile with the owners and at times I thought I had missed out (I was reading old threads on here about ‘what to do if you miss out on your dream home’ !).

However, I’m single, 40 and this is my first property. I am conscious that I now have sole responsibility for a large repayment every month for 30 years. I’m starting to worry slightly about this. Friend and family are telling me this is normal - on their first mortgage, everyone looks at the large number and wants to eat pot noodles every night for awhile, before realising it’s all ok, and carrying on with life as (realatively) normal. The also say this time before I am in the house is worst....now everyone focuses on the money, once in, you live your house and focus on unpacking, cleaning and getting into the garden, painting and making th house nice. Is this true???

If it helps, the mortgage repayment will be 42.9% of my income. The loan term is 30 years. Once I am in the house I will need to get some more furniture (having always lived in units, I don’t have enough furniture to fill a house). I will do this over the course of two years. After that, I can put that money into overpaying the mortgage, probably to about 55.8% of my income.

I’m also not planning any hold for the first 2 years. I live in a “holiday destination” and I am very happy With stay-cations (have done them in the past), so I don’t think this will be a problem.....especially with things to do on the new house.

Any thought? Does this sound ok, or am I really deluding myself?

Forgive the typos and random capitalisations!

You'll be fine. If you're not paying a mortgage, you're paying rent anyway!

Hi op. You've got your house now so enjoy it! Congratulations.

I think it is normal especially when you're on your own. It's quite scary to think you're doing it all by yourself with no one to help. But also well done! It's amazing to do on your own!

How many bedrooms do you have? If you have a spare you could always rent it out if you needed a bit of extra income at any point.

I’m about to buy and I feel the same even though it’s what I’ve wanted for years. I think it’s normal as it a big change

If you can afford to overpay on your mortgage, despite paying 42.9% of your salary on it, you must have a healthy income.

Assuming you haven't just suddenly started being a high earner, why have you waited so long to buy? Have you been working in different countries/cities, so it's made more sense to have the flexibility of renting?

As long as you're reasonably confident that you won't be moving for a while, it's great to have the security of owning your own house. Congratulations 😊.

Thanks for the reassurance everyone, I am caught between not believing I have got my dream place and then worry that ad the sole person I now can’t get sick or lose my job as it’s only me on the repayments.....

To answer some questions PresidentHump there are three bedrooms, and yes, as this is a holiday destination I thought I could AirBNB them, but (at this stage) I’d prefer not too. I’m so excited to have my own place and be able to invite friends and family who live far away to stay! But perhaps that feeling will settle and it’s good to have the option in future.

MsVestibule I don’t think I am a high earners compared to some of the figures that get thrown around on Mumsnet, but I guess I am in the ‘middle’ (whatever that is??). I have read that any repayments over 30% is known as “mortgage stress”, hence me being a bit worried. Being single, I think my percentage can be higher than normal as I don’t have to consider childcare costs or food/clothes/entertainment for anyone but myself. So if I say no new clothes for a year, then I can’t complain to myself

As to why I have waited so long, what you’ve said is one of the reasons yes (noting what I said above about not necessarily being a ‘high’ earner).

Finally - no guarantee if being here for a long time, but I just really, REALLY wanted my own place.

By 'high earner', I mean in the higher tax bracket (£46kish+), not the £100k+ salaries I read about on here! Disposable income/affordability is key when deciding how much to borrow and as long as you've done your sums (and it sounds as though you have), you have nothing to worry about.

Have you considered getting unemployment insurance? I don't know if it's too costly but it may give you some peace of mind?

Ah! Ok, then yes, I am over that tax bracket, but I do also think it’s the fact I only need to worry about expenses for me that is key. I don’t need to suddenly come up with money for new school shoes, or an excursion, and if I decide to have no holidays or cancel Netflix, there is no one to complain to me about my decision!

I wish it wasn’t a 30 year mortgage term though. I know I can pay it off faster, but it does feel very long, and that I got started on this very late (which I did - this is a fact that can’t be changed). I feel simultaneously very behind and anxious to spend every single cent paying it off so I can get ahead on the 30 years, but a tiny bit relieved that now I have a property after long years of renting, moving around and feeling abit root-less.

It is stressful if one income,

But,

Congrats! Sounds amazing 😊

Not everyone is able to buy a home at the age they want to, especially in the current climate. Congrats OP, you've got a good head on your shoulders, you'll be fine.

See how it goes, maybe down the line, going elsewhere and pulling in 6 months worth of mortgage payments in a few weeks might get more intetesting, once you are settled!

For now congrats, enjoy and a glass to you in your new home :)

Can you get one of those mortgages linked to bank account and throw Everything at it?

If you can pay off quicker then do it even if just to reduce term make you feel more comfy xx

Congrats. Stop over thinking everything.
I got my mortgage at 39.

Don't think you have to get everything done asap. Settle in.
I'd sort the main bedroom, living room and kitchen first.