to mortgage ourselves over our heads?

[NCFC4now]

DH will read this so I suppose your opinions will help settle a debate.

DH is 32 and I am 27. We currently own a 3 bed semi Victorian house, it is in a desirable area we love, in the 18 months since we’ve moved in the value increased £75k (bank mortgage valuation) because of the housing bubble.

We over pay our mortgage every month and have a growing amount of equity (especially with the increase!)
However, whilst I love our house, it doesn’t have parking and I find the garden just a bit sad (neighbour has huge trees that block out a lot of sun because the garden isn’t big). Due to the area, parking is difficult and you tend to have to park down the road from your own house.

Because of our location, which we won’t compromise on, a 4 bed with parking, nothing fancy will be £1m. We can get a mortgage for £800k. In my mind, we should wait 2 years (fixed rate ends) and save as much as possible and go for it.

Using present rates available to us, our mortgage minimum payment would be £2.7k a month over 30 years. We can afford this but would mean we can’t really do a step wrong. It would also mean our savings are wiped out due to SDLT so would need to replenish those.

I grew up in poverty and we have achieved everything without any help so I suppose a big house has always been a symbol of achievement to me.

Is it a dumb idea? Tell me your thoughts! I am a bit scared about losing our jobs and whilst DH is a teacher so safe, his extra income comes through a business he runs which I think is stable but you never know. I also hate working and have some mental health issues. Also this could be made worse financially if we do have kids as planned in a couple of years…

DH wants the house but doesn’t want the debt and thinks we should stay put. My argument is simply that having a child and no parking space will cause a breakdown at some point if I’m already stressed whilst fit and childless about the situation.
Thanks

Is that near Scunthorpe?

I think I would feel like I’d died.

That was to @Flup

Anyone else desperately interested in her husbands side business? It sounds fantastic!! I’d be looking at a nicer house too if I had myself so sorted! Please tell us!

@JustMarriedBecca

Remember the 70s and 80s where interest rates went up to 11%. Absolute stupidity IMO. Stay put. You can't afford it.

15%, actually! I had my first mortgage then and partner and I were very glad we'd ignored the advice current at the time to 'take on the biggest mortgage you can'.

I'm curious to understand and learn what the side business is.

And also, go for the house!

Sorry to bring back the thread after ignoring you for so long.

DH’s day actually finishes at 9pm Monday to Thursday. So he leaves school and goes straight to his side business. It’s education consultancy, so uses economics to advise certain governments etc. His contracts are usually for 2 years and he has just started many new contracts in September. He has rejected a lot on a waiting list. It’s a little niche.

We just had our remortgage through. It has projected with our current overpayments that we would be mortgage free in 15 years. Our house was valued higher than expected so we are fixed on the lowest rate offered now as we have a good LTV.

I think we will reassess in 2 years now. I think DH wants the house too but there’s no such house on the market. Nothing is out there, it sells the same day or before it goes online! The closest we can find, a 4 bed detached nearby, is £1.5m. It’s not even that nice.

I suppose we shall see!

Sounds like a great outcome OP. Reassess in 2 years.

This is potentially really foolish / risky, OP. You clearly can’t afford it because if anything goes wrong, you will be at breaking point very quickly and with no savings to fall back on. Everyone would love a nice house in their preferred area with a garden and garage, but if you can’t afford it then you can’t afford it! There’s no way I’d leave myself so vulnerable to my home being repossessed. Think really carefully as the last thing you want is a real downturn in your income when your huge mortgage is already stretching you thin.

Just saw the update as it took me that long to type my reply due to constant interruptions! That sounds good OP :-)

@3luckystars

Anyone else desperately interested in her husbands side business? It sounds fantastic!! I’d be looking at a nicer house too if I had myself so sorted! Please tell us!

I want to know more about the OP’s job, which sounds wonderfully flexible and very highly paid!

Don't factor in for one child. Factor in for twins.

£2.7k is an extraordinary amount to spend on a house each month. Too much in my opinion. There's more to life including holidays, socialising etc.

Op I think you are overstretching and failing to plan for worst case scenarios

Never post updates because the thread will go back to active, but pps won't read the updates and will keep posting useless advice when no longer needed.

@Lweji

Never post updates because the thread will go back to active, but pps won't read the updates and will keep posting useless advice when no longer needed.

Amen 😂