Active discussions

Meet the Other Phone. Flexible and made to last.

Meet the Other Phone.
Flexible and made to last.

Buy now

Please or to access all these features

Talk
AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To think we could manage a £2200 mortgage payment

388 replies

Dyr · 03/08/2023 09:58

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)

OP posts:
BarbaraofSeville · 03/08/2023 11:27

Dyr · 03/08/2023 11:11

I've done a budget calculator, and excluding the mortgage our total expenses would have £63 quid left over each month.

What does that include though?

Does it include provision for annual expenses like insurance, Christmas, school uniforms, also broken boiler, washing machine etc?

What about things like needing to take a few pounds to school for dress up days? Eating out, days out etc?

If you've included absolutely every expense including some fun money/hobby spending, it might feel OK, unless your costs start going up faster than your income that is.....

greyhairnomore · 03/08/2023 11:28

Dyr · 03/08/2023 11:11

I've done a budget calculator, and excluding the mortgage our total expenses would have £63 quid left over each month.

That is madness.

cestlavielife · 03/08/2023 11:29

Dyr · 03/08/2023 11:11

I've done a budget calculator, and excluding the mortgage our total expenses would have £63 quid left over each month.

So long as you prepared to dip into the savings
But chances are your savings will rapidly disapear with repairs boiker painting new appliances furniture cars holidays

So in 5 years or less you will have zero savings left

Wisenotboring · 03/08/2023 11:29

You can't afford this. Our income is massively higher than yours and we would t commit to payments that hight. Also, you are currently in the cheapest part of child raising. You expenditure on children will rise significantly over the teenage years. Your savings are also fairly modest if you want to have rainy day fund, support potentially through university, maintain a house and save for an adequate retirement. Buy something cheaper and give yourself more wriggle room for the unexpected....not to mention interest rates etc.

Lougle · 03/08/2023 11:30

£63 per month. That's £15 per week. I'd find that very stressful.

Banderbear · 03/08/2023 11:31

I would be happy extremely extremely cautious about overstretching yourself that much. We stretched a little to move to a nicer area. Mortgage of £1k a month up to £1500 a month on a joint take home of around £4800. That was fine and we had money for savings, etc. Now we are remortgaging and because of the massive, ridiculous rise in interest rates plus me only being able to work part time due to cost of childcare, we are now looking at a mortgage of £2400 a month on a take home of around £4k and we are terrified. If we had totally overstretched to start with like you’re considering, we would be having to sell our house and move in with in-laws due to non-existent rental market where we are.

Onlyonedog · 03/08/2023 11:31

Madness. Surely it would be better to get a more modest house with lower mortgage and be financially secure. I don't know how old your children are but at this level of spare income you'd be choosing a bigger house over your children being able to go on school trips, days out, swimming lessons, join clubs, have sports equipment they need eg football boots. £63 left over a month is crazy if it's an active choice, don't put yourself in that position. £63 wouldn't even cover food price rises or bills increasing or any kind of broken appliance. One of my kids starts secondary school this Sept, school uniform alone (bog standard state secondary) would wipe out 2 months of your spare budget.

aintnothinbutagstring · 03/08/2023 11:31

Gosh our monthly food bill is like a small mortgage right now - can't see it getting any better for the foreseeable - and then winter energy costs 😥

Cosyblankets · 03/08/2023 11:31

I wouldn't
63 a month left is nothing.
What will you do if say you need a new pair of glasses, repair on the car, wedding invitation? I assume your savings are tied up to get the best deal.
No holidays? No meals out?

LighterHeart · 03/08/2023 11:32

Could you rent out one of the rooms to increase your income?

Qilin · 03/08/2023 11:32

Dyr · 03/08/2023 11:11

I've done a budget calculator, and excluding the mortgage our total expenses would have £63 quid left over each month.

It's too tight.

Where's the money for having some nice things in your life? School trips, a take away, a weekend away, a trip,out in the school holidays?

Where's the money for an emergency spend - boiler breaks, oven stops working, car needs some work, etc?

What happens if the interest rate goes up? Or your bills go up even a little bit?

Chachatrex · 03/08/2023 11:33

Wisenotboring · 03/08/2023 11:29

You can't afford this. Our income is massively higher than yours and we would t commit to payments that hight. Also, you are currently in the cheapest part of child raising. You expenditure on children will rise significantly over the teenage years. Your savings are also fairly modest if you want to have rainy day fund, support potentially through university, maintain a house and save for an adequate retirement. Buy something cheaper and give yourself more wriggle room for the unexpected....not to mention interest rates etc.

Is this true though? We have nursery fees of 1800 a month - I can’t imagine teenagers costing us that - uni yes (though we’ve already made provisions for this) but I’m just questioning this

bagforlifeamnesty · 03/08/2023 11:33

Our combined income is £5.5k per month and I’m worrying about our mortgage potentially going up from £1100 to £2000 with rates (we got a very low 5 year fix in 2020). I don’t think this is sensible unless your budget calculations include intentional overestimates in pretty much every single category AND accounts for year on year inflation AND includes sinking funds towards new appliances, house upkeep and maintenance costs etc.

fatherliamdeliverance · 03/08/2023 11:33

That sounds very high to me for your salaries, especially with what sound like high outgoings on top.

I know you have savings so it wouldn't be dire straights immediately but if one of you loses a job, you need some house maintenance, new car then you're cutting it very fine and why plan to rely on your savings for every day issues like house bits and pieces?

Are you asking just because you've been told you may get that amount and want a sense check or because you've got your eye on a place that will cost that amount?

I'd personally look at something much less.

LondonPapa · 03/08/2023 11:33

Dyr · 03/08/2023 11:11

I've done a budget calculator, and excluding the mortgage our total expenses would have £63 quid left over each month.

I doubt you'd even get approval for a mortgage that leaves you with £63 after essential expenses.

Irritatedmum · 03/08/2023 11:35

This is why there are so many people crying to the newspapers saying they can’t afford their mortgages when the rates rise. They’ve stretched themselves too far in the first place. You have to ask yourself if you can still afford the mortgage if the rate rises in the future. If you can’t then you’re stretching too far.

LumionaMoonsplash · 03/08/2023 11:36

Mortgage 55% of income is not recommended at all, I'd be surprised if you passed affordability stress testing by the bank.

Our mortgage repayment is 10.5% of our joint net income, this gives us the leeway to cope with interest rate rises.

ACupOfTeaDoesNotSolveEverything · 03/08/2023 11:37

Dyr · 03/08/2023 11:11

I've done a budget calculator, and excluding the mortgage our total expenses would have £63 quid left over each month.

Even a slight increase in mortgage rates, fuel, food etc would wipe out a £65 buffer very easily.

Beenhereforever1978 · 03/08/2023 11:38

Dyr · 03/08/2023 11:11

I've done a budget calculator, and excluding the mortgage our total expenses would have £63 quid left over each month.

The very short replies and this £63 are leading me to the conclusion that this is a reverse.

Sellingstress · 03/08/2023 11:39

Our combined salary is 6.5K and we have a mortgage of 1600 with a recent further borrowing to do some necessary structural work to the house. A short term (over 5 years) of £500 pm. So we are forking out 2100 pm at the moment and it's tight. I wouldn't.

Grumpy101 · 03/08/2023 11:39

That's not realistic and actually irresponsible.

Sugarfree23 · 03/08/2023 11:39

£63 is nothing.
What happens when the car gets a puncture or the kids feet suddenly grow and they need shoes?

Have you made an allowance for birthday or Christmas gifts?

And you'd be screwed if bills go higher including interest rates.

MavisChunch29 · 03/08/2023 11:39

No. Our mortgage is half that and the other outgoings total a lot more than the mortgage. Even with just two of you your other outgoings will end up being more than your mortgage.

Food
Travel to work
Council tax
Energy
Water
Home insurance
Car insurance/tax/maintenance
Phones
TV/music subscriptions

Just for starters. Add it up.

bubbleaf · 03/08/2023 11:41

People saying it’s too much … where do you think you can rent for less than 1k a month for two adults and two children?

Newsflash, you can’t. 1k is actually cheap for a two child family in the rental market. Other people cope and if OP wants the house she should have it. It’s tight but doable.

Rtc12 · 03/08/2023 11:42

That sounds way too tight, ours is £4500 and our mortgage is £700. I think I'd comfortably go up to £1000 but not much more.