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To buy a £700k house on £67k

544 replies

Polledja · 18/03/2023 19:08

My wife and I are looking to buy a house. I was very foolish with my money during my younger days so am behind my peers.
we want a house near a good school and houses in that area range from £550k to £700k. The ones my wife likes are at the higher end but I don’t think we can afford these. She has become withdrawn and depressed during this process and it caused allot of tension.
I have approx £280k for a deposit (this is all our savings bar £18k). We can borrow £350k based on our joint salaries of £67k. It leaves me £90k short. I think I could borrow this from family.

our net pay is £3900 per month. We would have £2000 tonoay on our mortgage leaving us with £1900 to pay everything else. We have two young kids at school. Our monthly expenses excluding our mortgage are about £1600 so it would meaning having nothing left each month

OP posts:

Am I being unreasonable?


You have one vote. All votes are anonymous.

Growlybear83 · 18/03/2023 20:20

Have you considered that interest rates might rise further? The mortgage rate is still very low at the moment compared to how it was in the past. When we were buying our last house, in the 1980s, we were paying 16% for some time, and just before we moved in, the rate briefly went up to 18%. With the sort of money you would be borrowing, a 1 or 2% increase would probably be unaffordable.


Rainsdropskeepfalling · 18/03/2023 20:21

I suggest you go to your bank or financial advisor and get them to give you an idea of the size of a mortgage in principle, taking into consideration your incomings and outgoings and then both you and your wife will have a figure in black and white and you can search for a house you can afford.


tirednewmumm · 18/03/2023 20:21

Anotherturnipforthebooks · 18/03/2023 20:18

As astounded as I am by op's situation, I'm also puzzled by the 'we have a £200k income and wouldn't dream of buy a house costing more than £300k' type posts.

Me too but I'm just assuming people chat shit on the internet lol or perhaps have quite luxurious lifestyle choices in other areas


whynotwhatknot · 18/03/2023 20:21

but you cant afford it-you cant borrow as in a loan they will tak that off the amount they'll give you

we all want something we cant have thats just life


Tallulasdancingshoes · 18/03/2023 20:24

No way you can realistically afford this. How would you afford to pay back the 90k? How would you manage to look after the house - decorating, repairs etc? What happens when you come to remortgage with possibly higher interest rates. And even if you managed all of this you’d have no life. It’s just too much. You need to look at the cheaper end.


youshouldnthaveasked · 18/03/2023 20:24

She will be even more depressed if you get the house repossessed for not keeping up
payments. Surely she can see she is being unreasonable?


Beezknees · 18/03/2023 20:26

Do not do this. Would be foolish in the current economic climate.


FatAgainItsLettuceTime · 18/03/2023 20:26

Anotherturnipforthebooks · 18/03/2023 20:18

As astounded as I am by op's situation, I'm also puzzled by the 'we have a £200k income and wouldn't dream of buy a house costing more than £300k' type posts.

We're not in the £200k range but have a household income of about £110k. Bought a house for £83k, worth about £200k now and no intention of moving. Mortgage is £400 a month which we overpay, lots of disposable income for savings and being able to live a nice life without having to worry. We aren't excessive or 'luxury' type people but we do get to have the heating on when we want, go out for day trips, meals or pay for expensive holiday clubs without having to really think about it.

Everyone has different priorities, we prefer knowing that we have a decent whack set aside for a rainy day and being able to live day to day without fear of bills. Having a big fancy house isn't important to us.


CoolasCucumbers · 18/03/2023 20:26

pinkbaglady · 18/03/2023 20:19

My DH and I bring in about £6000 a month and I wouldn’t dream of buying a house over £280,000.

why? Because we’re financially responsible.

Well that's just as odd because you could afford far more! But it also depends on what equity you have as a deposit.


Beezknees · 18/03/2023 20:28

LemonSwan · 18/03/2023 20:12

Lol that’s also ridiculous 🤣

I don't think it is. It's sensible. Why push yourself to the absolute max you can afford and then worry about money every month? Better to buy something in a comfortable range that allows plenty of wiggle room.


Eas1lyd1stracted · 18/03/2023 20:29

Mortgage rates are really high at the moment so it's definitely a bad time to overextend yourselves. Plus as others have mentioned noone would lend you that amount.

My wife and I earn a little more than that together and I'm absolutely horrified at what you are thinking of borrowing.

Plus you need to prove where your purchase costs are coming from and it can't be a family loan.

The whole thing is a complete non-starter and I would therefore look at why this is making your wife so depressed. Its probably about something else and an expensive house won't solve things anyway.


MoserRothOrangeandAlmond · 18/03/2023 20:30

Our joint income is more that yours, had a mortgage for 10 years and borrowed on our Mortgage this year so now own around £100k and I'm freaking out! (Still on track to be mortgage free by 50!)
Borrowing 350k and 90k from family isn't doable! You won't be able to live, maintain the house, say bye to any holidays as you will be living on beans!


Veryxonfused · 18/03/2023 20:30

Absolutely not. Our net earnings are also £3,900 a month and our mortgage is £570 a month. I also find it wild that family members are willing to lend you £90k


Anotherturnipforthebooks · 18/03/2023 20:31

There is a middle ground between stretching yourself to the max (or past it in op's case) and spending the absolute minimum you can on the biggest purchase you're ever likely to make.


MoserRothOrangeandAlmond · 18/03/2023 20:31

*owe not own


Lolaandbehold · 18/03/2023 20:31

I would. Just get an interest only mortgage that you can overpay.


Zonder · 18/03/2023 20:32

I'm afraid that if she wants a big posh house she needs to earn a big posh salary.


PurplePansy05 · 18/03/2023 20:32

No way, OP. You can't afford the mortgage repayments on this joint income, interest rates may rise again, everything is going up AND you'd have a 90k debt in addition to a massive mortgage. A recipe for disaster. I don't think any bank would lend you this amount anyway.

We're on significantly more than you and your DW and we'd never ever go for it. In fact, I feel we've overstretched now and we're riding it out with a young DC and forever increasing cost of everything atm, but our figures are nowhere near yours, not even close. You'd be crazy to do it.


Daisybee6 · 18/03/2023 20:33

You have a nice size deposit, just buy a cheaper house and have more disposal income for living your life. What's the point in having a £700k house if you have no money to enjoy life


Raineth · 18/03/2023 20:33

DanceMonster · 18/03/2023 19:10

How would you pay your family back if you have no money spare each month?

This ^^


EstherHazy · 18/03/2023 20:34

Gosh lots of judgment here!

The affordability has lots of variables... The money from family - depends if this is a gift or not. The borrowing amount - prob your expectations may be too high but if you're in professional jobs (accountants, doctors etc) you can potentially still borrow 5x. Your outgoings- could these change (either way)? Do you have reasonable expectations of growth in salaries? If so then maybe it could all come together.

Unlike most here, I think it's not a bad thing to go for the most you can afford, if you want to. I guess a lot depends on where in the country you are - if you live an area like mine this money won't actually buy a very fancy house at all so it's not unreasonable to stretch yourself in order to get to a relatively basic family home in a safe neighbourhood. I'm borrowing the max I can, and when renting always rented way over the affordability limit (thanks to a guarantee from my parents) - because that's what I wanted to spend my money on.

One thing is prices are dropping quite a lot - especially that family home level - so give it a year and your 700k house is 630k and you can afford it after all.

But if you want 'out', the way to do this is conversations around such a low contingency, what may be compromised with family cars and holidays, your kids education needs (you might want to have tutors / go private etc etc), and what lifestyle you can get if its not tied up in the house.


Thisgirlcan21 · 18/03/2023 20:35

Surely there is nice areas with good schools which you can afford. Why do this? Your life will be so stressful every single month. I’m not sure you would get the mortgage anyway


Stravaig · 18/03/2023 20:36

I wouldn't want to leave myself only £18K savings/emergency fund if I were responsible for 2 young children and a property. So let's make that £250K deposit maximum, and £48K savings.

Now, with a £250K deposit, wouldn't it be a happier life with a much cheaper home and (almost) no mortgage, soon paid off?

Your current plan leaves no slack in the budget for interest rate hikes, cost of living continuing upward, or losing one or both salaries.

You say you weren't good with money in your younger years, and that it is your wife driving this over-extension on property. It sounds like you are both still tempted beyond your means: she in her property aspirations; you in your choice of partner. Neither of you have the salaries to match!


Pieandchips1234456 · 18/03/2023 20:37

I wish you both the best but this would be a foolish choice to make. Not only that how on earth would you pay back the 90k? You would be living hand to mouth. In my childhood days we called places like this spam valley. The owners took on so much more than they could chew and had to live on spam or beans on toast.


NewNovember · 18/03/2023 20:37

Honestly I would buy a £280k house enjoy my life and use tutors if necessary for years 9-11

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