is this too much for a mortgage

[holidaymama]

Moving house and really pushing ourselves, new mortgage is going to be over £500k, is this crazy or do other people have big mortgages too, ours has always been a lot less than this but approaching 40 and we feel we should go for it!

I presume you mortgage provider thinks it’s doable otherwise they wouldn’t have given you the mortgage.

A nonsense question.

How much do you earn?

If your take home pay is £1.5M pa then it's peanuts.

If you are on minimum wage then possible unwise.

Well, it's a combination of your incomings & outgoings, your financial security and your attitude to risk

Pretty sure that covers it

Never forget that in the 80s interest-rates crept up to double figures. Great for people with savings, absolutely horrendous for those on the margin of affordability.

Would you still be able to pay your mortgage if one of you lost your job and couldn’t find another at the same salary? In the current climate that would be my greatest concern

Ridiculous op . 😂

I would never take that size mortgage and we’re on a joint income of 110k. I can’t wait to pay off our mortgage altogether though as I hate owing large sums of money. Too much can go wrong.

@blue25

I would never take that size mortgage and we’re on a joint income of 110k. I can’t wait to pay off our mortgage altogether though as I hate owing large sums of money. Too much can go wrong.

Ditto.

Can you afford mortgage payments at a push on one salary -that is always my cut off.

It's only too much if you can't afford it.

They’ll do an affordability test. But how secure are your jobs?

What other people do is totally irrelevant. This is about you and your needs, wants, objectives, short/long term goals, your lives. Know why you are proposing this course of action and where it fits into your overall life plan and you'll know whether it's the right thing to do or not, assuming that your financial resources can support it. Do you have a life plan, and a financial plan to underpin that, including some "what-if" scenarios to stress-test it?

Only £500k? Come on push the boat out and go for a million. Everyone knows house prices only ever go up so you literally cannot lose. Even if you can't afford it perhaps the government will bail you out.

It might be worth considering that some experts have predicted that house prices could fall next year, along with interest rates increasing,(not certain but it could happen). If that did happen, could you still afford the mortgage, remember back in the 80's and 90's when lots of people ended up with negative equity. Not so relevant if your are planning on staying in the same house for many years though.

*Mildura

I've seen a mortgage illustration for someone recently, mixture of capital repayment and interest only, total sum borrowed - £740,000, monthly cost about £1500.*

£1500 pcm for a £740k mortgage? That's either a typo or an astonishingly good deal where the lenders make a massive loss... (unless I'm reading the post wrong?)

as someone who saw interest rates at 15% in the 80s I would never ever ever reply on low interest rates for the duration of a mortgage. Ask yourself what would be the worst thing that could happen post Covid and Brexit in the middle of a recession like no other and interest rates went up or one of you lost your jobs.

I think you'll find that most people don't have anywhere near a £500k mortgage ...

@bungaloid

Only £500k? Come on push the boat out and go for a million. Everyone knows house prices only ever go up so you literally cannot lose. Even if you can't afford it perhaps the government will bail you out.

:D

My mortgage is over that but I'm younger so have longer to pay it off. Relative to joint income the monthly payments (we overpay) are 20% of our net income.
We don't have kids though.

@RememberBlazinSquad

*Mildura

I've seen a mortgage illustration for someone recently, mixture of capital repayment and interest only, total sum borrowed - £740,000, monthly cost about £1500.*

£1500 pcm for a £740k mortgage? That's either a typo or an astonishingly good deal where the lenders make a massive loss... (unless I'm reading the post wrong?)

Glad someone else spotted that. My jaw hit the floor when I read that.

It depends on so many factors. Just because you've been offered a mortgage. I just did a quick check using one of those online calculators and they reckoned we would potentially be offered up to nearly 800K!

Our mortgage is currently 180K - because I like have money for holidays and savings and gin. And I don't want to worry about losing job/circumstances changing in the future.

Are we all meant to guess at the rest of the information needed to make any kind of meaningful comment on your situation.

@VinylDetective it’s a mix of captial repayment and interest only. Could be 90% interest only and a big deposit!

Well presumably your lender thinks it’s ok so why ask?

These posts are always so baffling.

[quote TheAirbender]@VinylDetective it’s a mix of captial repayment and interest only. Could be 90% interest only and a big deposit![/quote]
It doesn’t matter how big the deposit is, it’s still a £740k debt.

mortgage.icalculator.info/example/740000.html