To wonder if this is affordable?

[Moneymatters12]

I think it is, it’s just not what I’m used to

mortgage of £1350 (used to paying £800). Dh and I just secured new jobs, combined income of 6k after deductions.

we have 2 kids In childcare about £800 a month.

all other expenses are your average expenses. No debts and nothing on finance

as a mortgage, that’s ok right? It just feels so high (but I guess that’s relative isn’t it and will take some adjusting)

My mortgage is almost 3x your new one. You’ll be fine.

What your parents told you is rubbish, mortgage payments are dictated by interest rates so liable to rise. Your borrowed amount doesn’t change

So a sink hole fund was a tip I picked up from here, I hadn’t been factoring in those expenses to my budget before and there was always something out of the blue cropping up and taking my savings, but it’s basically like new tyres, a boiler repair, new washing machine etc that sort of stuff, and you put some money to that, each money, if it doesn’t get spent you can either keep it as a separate pot or merge it with your other savings. We use it for kids clothes too

dh and I earn the same before tax 55 and some change so budget wise we split it all down the middle. £100 a month days out/ food out fund and when that’s ran dry then it’s free days out for us

Obviously they are liable to interest rates, the amount you borrowed doenst change but your loan to valuation does. On remortgage you only mortgage the outstanding balance, which will come down, unless you take additional borrowing

Exactly.

No! The payments stay the same because instead of owing say £150k over 25 years you then owe £132k over 20 or whatever. I have literally just done this. They come down if a) the rate goes down or b) you extend the term.

Not exactly, your borrowing does come down. Interest rates will vary but in theory the amount of borrowing does come down as your share of the property increases

I'm not sure why it would be a problem. Loads earn less & pay more in rent.

your childcare is cheap!

Wrap around and only one child in fee paying nursery

makes more sense

Sounds doable. Our payment is £1,350 and we take home under 5k with no children.

£101k over 25 years at 3.92% is £530 a month. Say 5 years later you're down to owing £88k. £88k over 20 years at 3.92% is... £530 a month.

yeah you’re right. I got confused. Long day. Clearly I shouldn’t go through my budget, it does things to my brain

As others have pointed out, whoever told you that your mortgage payments would come down was lying. You may have more options as you come to remortgage and slightly better interest rates offered but, unless you make overpayments, it won't change.

Also the pedant in me needs to point out that it's a sink/ sinking fund rather than a sink hole fund.

Not sure I’d call it lying, perhaps naive or mistaken

semantics aside it’s what we call it and it is what it is

I just wanted to kind of labour the point because I think it's a dangerous thing to repeat! And I work in the industry.

People do say mortgages become "easier" but as a PP said that's normally via better loan to value rates through property value increases, promotions, and ability to overpay.

I think she means Sinking Fund. Basically savings for any general category you see fit , like holidays, repairs, replacement etc.

I think I get what the parents mean. If interest rates stay broadly similar and you don’t borrow more the amount you pay for your mortgage would typically go down as a proportion of your income over time.

So 13 years ago we bought a house and had a fixed rate round 3.5% and our monthly payment was under £500. Had we stayed there & not extended or borrowed for home improvements then since our take home earnings have more or less doubled over that time we would be paying a smaller proportion of our income on a mortgage at this point.

Of course that’s affordable. We pay £1670 a month and have similar income and outgoings to you.

Has the OP just come on here to boast ?

A lot of touch people and inverse snobbery going on here.

I don't think the OP needs to apologise for the question, just because others don't have the same income. It's really odd.

Boast about what? Oh yeah by 5 year fix at 2% is coming to an end… ooh look at me. I’m so lucky I get an interest rate of 6%

Imagine having mortgage and bills amounting to £1400 and you only earn £3k.

I think you're doing okay OP, you might not be saving as much but maybe you can adjust other things like your sink hole fund so you can save more

Be grateful, you have a mortgage. We are renting and paying £1.5k in childcare each month and it's only part time! We don't have any money left over to save.