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)

I think it’s madness, there’s no way I would commit to spending over half my salary on a mortgage as a family with a take home of 4K, it leaves you with £1800, but after your bills and food are paid for you will be left with very little.

Don't get rid of all your savings straight away. It's good to have a buffer. It's easier to pay extra savings into a mortgage later than to extract those savings later, so it's more flexible. If the interest rate is the same, then it makes no difference whether you have a higher mortagage and dip into your savings to pay it as you need, or have lower mortgage but no savings to dip into. But if there is a significant gap between the return on savings and interest on the mortgage then you may want to use the savings to reduce the mortgage a bit.

I think keeping some for a rainy day is sensible, keeping £50k is more like for a monsoon. How much would come off the repayments if you kept £20k and put an extra £30k into the house?

As a comparison our take home pay is about £5k, our mortgage is £1200 but we overpay £500 so £1700.

We have very little left to save at the end of month now so many costs have gone up.

We don't have holidays.

There's always some extra expense each month, eg car MOT / home or car insurance.

We have other savings so we're fine with no additional monthly saving.

I have no idea where it disappears to.

Sorry that is way too much.

A usual guideline is a max of 33% of your take home.

Which would be - about 1300. Personally even that is being generous

2200 is way too much and will cause huge budget issues.

I don’t understand this. Take home pay usually means the amount you receive into your bank account after tax, ni, pension, childcare deductions. Are you saying that this is the sum you have left after you’ve paid all bills, like gas, electricity, travel, insurance, car, childcare? Or do you still have to pay these costs out of the 4K? If the latter then absolutely no way should you take on a mortgage of that much.

This would be madness.

Are you currently renting, and what region of the country is the property in?

Utter madness, the interest rates are creeping up, they aren't going to come down anytime soon.

You'd be absolutely scraping by each month.

For how long would you be paying these mortgage repayments for?

If your kids might go to university whilst you are still making these sorts of repayments, you'll need to factor that in. With a take home amount of £4K a month you will easily earn above the threshold so your DC will only be entitled to the minimum loan amount. You'll have to fund the rest (c. £400-£500 a month) whilst your household bills will remain largely unchanged.

We have similar take home pay and mortgage is £1000 and honestly after council tax and other bills we have nothing left to save. We are relatively careful & rarely eat out, don't go abroad, run two old cars with no loan. Food, petrol & utilities have gone up so much.

You would be better using the £50k towards mortgage & paying less each month.

Absolutely not. Our take home pay is £6.3k and we are feeling the squeeze with our £1.8k mortgage and one child!

Our total income is close to £6k and I personally wouldn’t want mortgage payments that high. Yes, if ours did reach that level we would management, but we’d have to cut back. I’d be surprised if you got that mortgage approved on that level of income, unless you’ve had a decrease in income and remortgaged with same lender, therefore not had to go through the same level of approval.

This. You would be tapping into your savings every month.

It's a mad idea. Take it from someone who has made similarly mad decisions on a higher take-home income and very much regretted them!

What are all your other monthly outgoings, @Dyr ? List them and see what they total.

What happens if interest rates and food, fuel and utility prices go up by 5% over the life of the mortgage, OP?

How much LTV would it be? How much equity would you have in the house?

Its a big chunk but not unmanageable but depends on the overall picture if it’s 95% loan to equity no I wouldn’t.

Work out your overall net worth and decide then.

We recently moved house, we didn’t max out but we went somewhere near the middle. It’s taken us 6 months to find our feet. There has always been something like mots, big birthdays. I am so glad we didn’t push ourselves too far. My advice would be to not take on something that takes away that much of your monthly salary. Not only did our mortgage increase but our council tax rose by over £80, our gas and electricity will be more expensive though we had so much in credit we haven’t seen the implications of this yet… Home insurance was a little more expensive and that’s not even taking into account the ridiculous amount of money food shops are costing just now.

I don't think I would be comfortable with that. How old are you and what would be the length of the mortgage?

what? people spend upwards of 50% on rent? Why not on a mortgage?

More than 50% of salary on mortgage is too much imo. We aim for 25% but did stretch to more like 40% at one point.

Seems very tight to me, especially with two children (although at least your past the childcare cost years) - unless you are likely to start earning more in the next few years.

Also, the house itself makes a difference - maintenance & energy costs. One thing stretching yourself like this to get a fairly low maintenance energy efficient house in a good area but quite another to afford a beautiful period property with high on-going costs.

girl, you're commenting on someone else's post, not making your own. However instead of looking for sympathy on MN and wasting your time, how about having a grown ass adult convo with your husband about it??

Honest mistake, jog on.