To think we could manage a £2200 mortgage payment

[Dyr]

on a take home pay of £4k.
After purchasing the house we would have £40k - £50k left in savings / investments.
The repayments would be about £2.2k per month but our combined take home would be £4k, and due to the jobs we are in its unlikely to increase. late 30s/early40s with 2 kids (primary school age)

This is crazy stupid idea to even consider, watch energy prices go up this autumn again so will food prices clothes any other services. No no way keep it 1000 at the MAX. With just 2 kids not like toy need xxl house either

How much is the council tax, electric, gas, water, insurances etc? If interest goes up again you would need to pay even more and if your salaries are stagnant you ideally want a decent chunk of disposable income a month to absorb it.

I suspect it’s not a small house so the running costs would be much higher.
For us:
Council tax : 270
G+E - 400
water - 100
etc etc

we also pay after school clubs, holiday clubs, school uniform etc

It's a really daft idea to be a homeowner with a mortgage if £2k+ a month and not have £50k accessible for emergencies/loss of income etc. That bit of the OP's calculation is eminently sensible.

55% of your income on your mortgage. It's doable, but I wouldn't personally. Could you afford it of the interest rates increased more by the time you remortgage

I mean, if op lives in some parts of the UK this mortgage won't be buying anything very impressive

Absolutely no way. Our take home is just about £4800 and our mortgage payment is £1200, we have a comfortable but by no means extravagant life, run two cars (cheaply - only one low car payment and one is electric and charged on cheap tariff/solar at home) and moderate commuting expenses. We also have a very good chance of significantly increasing income over last few years. There isn’t a snowball’s chance in hell that I would be considering £2.2k on a £4k income with low chance of increase.

Next few years*

That's just not true - it depends entirely on the circs. If it's less than 50 per cent LTV due to previous equity build up then you certainly can.

I do t think so unless you live incredibly frugally in terms of food, petrol, phone bill, internet, utilities, council tax, insurances, and you don't go out much!

likely if she is in the south but making that high mortage payments vs income is insanity,rather live ib something u impressive than loose a house

My take home is about £4k. My mortgage is about £1k - and I think THAT is too high, really.

No way would I commit to more than 50% of my take home on mortgage payments. What of you gets sick or loses your job?

I agree with pp, that if you go for this then keeping £50k in reserve is the most sensible bit of the plan.

How much do you currently spend each month excluding mortgage/ rent ?

If it's less than 1800 then no problem

If it's a bit more - tight but doable

If it's way over 2000 a month - where do you see the savings coming from ?

Leaves £760 for everything else. Birthdays, Christmas, holidays, fun, days out, petrol.

Well, clearly plenty of people do live on less than £800 "spending money" a month (I don't!). In fact, on other threads people are told that they are being ridiculous when they complain about having that sort of amount left over. But it is pretty tight and you need to think carefully about the alternatives. I think those people who think it is a ridiculously big mortgage are not taking into account the current level of house prices in some parts of the country and current interest rates, so this may well be a pretty modest house purchase. If this is what you need to spend for a liveable family house near to where you need to live, then you may just have to do it. At least you have the savings as back up. If you are choosing a bigger, more luxurious house than you really need, then you may want to think again.

We have a take home pay of around £4k, and there's no way I would want to spend out that much on a mortgage. Ours is currently £500pcm, and we definitely don't feel like we have bags of money left over at the end of the month. Yes enough to feel reasonably comfortable, and be able to afford unexpected costs, but still have to watch what I buy on the weekly food shop, and bargain hunt for school uniform etc, if we want to be able to afford a holiday. We certainly wouldn't have a comfortable lifestyle paying out that much on a mortgage, I feel it would make day to day life very tricky. I would hate to not be able to afford little luxuries and to do "fun stuff", because the majority of our earning were gone to cover one debt, before even accounting for all the additional life costs.

We bring home £4K and mortgage will be £1K. I certainly wouldn't want to go much above this! Bills, childcare, savings for repairs, cars etc we would have to budget very hard and have nothing left.

You're overstretching unless you're taking a very short mortgage. Use savings to reduce the mortgage and make the term much longer. I'd say bring it down to £1.5K at the absolute max. Remember interest rates still rising so that could become more when fixed rate ends. You can overpay most mortgages, usually 10% of remaining balance per year. If you went for a £1.5K mortgage you could overpay by the £500 a month or so extra if you can afford and bring it down quicker. Much better to take a mortgage you know you can afford if things go a certain level of south and overpay when things are looking good than mortgage to the absolute eyeballs and live your life in permanent stress of boiler/car/roof breaking.

That's our mortgage but our take home is 6.5k

At 4k it's too tight. Have you stress tested for higher interest rates?

What’s your current mortgage OP? If you are able to save the difference currently then you’ll be ok.

100% no.

You would be insane to do that. Especially the way the rates have been lately, it has shown us that you absolutely cannot mortgage yourself up to the hilt. If those rates change and you end up with even 1or2% increase you’d be frankly fucked.

Do yourself a favour and get a reasonable, affordable mortgage,
if you have spare cash then throw it into high interest accounts or investments and review in the future when you’re earning more money.

Madness!

No way! Our take home is £6k and I’d feel uncomfy with that repayment

@Dyr this isn’t a good idea ! You would be scraping by after your mortgage is paid. I don’t think the bank would lend you this anyway.

Our take home pay is almost 6k but the maximum we would consider for a mortgage is £1500 a month, we have 1 child.

Nope we have an income that’s about twice yours and a mortgage of just over that size and it’s really stressing me out.

Oh I agree it's insanity.

We bring home about 4.4k and our mortgage payment is currently £760. Ok we have 3DC but we are broke every month. (and no car finance or other debt). Your figures are crazy.

We have a take home pay of £10k and £2.2k is our mortgage repayment. We debated for a long time about whether we could afford it (I know I’ll get hate for this but we had two kids in full time childcare at the time).