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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To ask if you had £1k/m to spend on a mortgage would you..

43 replies

ElonXMusk · 27/12/2021 19:08

  1. get dream house on 28-30year mortgage, need no work and is future proof.

Or

  1. be mortgage free earlier and do a more modest house that you’ll need to move on from at some point for 20 years?
OP posts:
Lincslady53 · 27/12/2021 20:00

No such thing as future proof. Our house is about 20 years old and needs everything updating. Kitchens and bathrooms go out of date, boilers need replacing, roof tiles need repointing. The garden looks ok, buy could do with new paving. I would go for the biggest mortgage you are comfortable with. Over 20 years inflation will minimise the ratio of mortgage to earnings. Just be careful re mortgage rate increases. With inflation on the rise, interest rates will also start to rise.

Hotyogahotchoc · 27/12/2021 20:02

We pay about £1100 a month, it's not the most we could borrow but we're comfortable and consider it our dream house although we plan to extend.

£1100 is around 20% of our monthly income

sst1234 · 27/12/2021 20:03

Go for the dream house. You will be able to sell anytime you wanted. When you say dream house, what makes it a dream house? If the location is desirable, then your investment is as safe as houses - so to speak. You get the best of both worlds. Dream house now and be flexibility to sell to get investment back whenever you want.

Boysnme · 27/12/2021 20:09

We have just bought our dream house with a £1200 mortgage. It’s about 20% of our take home pay and we’ll pay more into the mortgage to reduce the term.

LadyRoughDiamond · 27/12/2021 20:13

Do-er upper, renovate, sell on. Rinse and repeat. Everyone I know that have built up significant wealth over the last 20 years have done it through property, moving every five years or so.

Original poster
ElonXMusk · 27/12/2021 20:13

No such thing as future proof

In terms of what we want/need as we age. Not in terms of repairs. Repairs are, unfortunately, a given with any house.

OP posts:
polarbearoverthere · 27/12/2021 20:39

Buy the best you can because you’ll have a nicer time living there. Overpay your mortgage if there are times when you have more. My first property was a house to skip the flat step that we would have outgrown within 5 years probably. It was DH’s idea and took me a while to come round to but I’m so glad we did it. I also rationalise that we also saved on paying second stamp duty due to not moving

JackieCollinshasnoauthority · 27/12/2021 20:41

Now is the best time to borrow money. And I say that as someone who is relatively risk averse.

maya71 · 27/12/2021 20:44

We live in a 3 bed semi & when we bought it, 14 years ago, our mortgage was almost £1k per month. It's come down a lot since but it's far from a dream house!!!

Bunnycat101 · 28/12/2021 07:16

I don’t know why you’re worried about option 1 if the £1000 is 18% of your income. Many people will be paying much more in rent/mortgage at lower levels. You should have enough flex to overpay and reduce the term.

TheDrWillSeeYouNow · 28/12/2021 07:32

We've gone for a modest house in a great location and will be mortgage free within 15 years. But might consider changing this if a more ideal house came up!

DropYourSword · 28/12/2021 07:53

Only sensible option is to go for dream house. Get a decent mortgage deal that allows you to overpay and redraw without charge. Regularly make overpayments with what you can afford. You’ll cut the term doing that.

Greenqueen40 · 28/12/2021 09:05

1k a month really isn't that much! Go straight for the dream house

mumda · 28/12/2021 09:10

I'd be seriously looking at EPC on any house purchase.
Always aim to be mortgage free as soon as possible. It'll change your life.

pilates · 28/12/2021 09:13

Probably dream house, but will you be in a position to pay off chunks of mortgage during the mortgage term?

notanothertakeaway · 28/12/2021 09:13

@Bunnycat101

I don’t know why you’re worried about option 1 if the £1000 is 18% of your income. Many people will be paying much more in rent/mortgage at lower levels. You should have enough flex to overpay and reduce the term.
Agree with @Bunnycat101

Your proposed mortgage sounds quite affordable for you and if you move again in 5 years, then you'll be spending £££ in stamp duty/ land tax

AuntyBumBum · 28/12/2021 09:15

YABU

Singlebutmarried · 28/12/2021 09:36

Dream house

30 year term - or whatever is longest term you could get. Santander will lend up to age 75, some older so depends on who the oldest borrower is.

Long term mortgage, 5 year fix, review at end of deal. Dependant on interest rates your monthly payments would be less than 1k as the capital owed remaining is less.

Shop around with mortgage lenders about 6 months prior, you can look at reducing the term then bit keeping the payments at the same amount.

Do this every 2, 3, or 5 years depending on the product you choose and your term could decrease by a year or so each time.

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