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)

Op, putting the savings aside, do you regularly spend up to your salary each month? It sounds like your house isn't huge so bills I think are roughly the same as mine. Do you have car loans etc that you're committed to or are there things you could easily cut back on when needed?

My mortgage has yet to increase, and I’m yet to receive my first salary from my new role so it’s a bit moot but I normally save about £500 myself.

i have a small 4 bed that’s super energy efficient so my bills are about £160 a month and I’m in credit. No debts no loans nothing on credit, so cut backs will be minimal but possible, mostly not treating myself to the odd thing here and there

I get it OP, £550 a month is a big jump in bills so of course it's an adjustment even if it is ultimately manageable. I'm sure there's plenty other places you rather see that money going.

So how does it work then? Is there some independent arbiter which decides if your income is low enough to be worried about money? As ever, these things are relative, otherwise no one in the uk would ever be able to be worried about money because there are people in 3rd world countries who are both penniless don’t have the safety net of a welfare state or free healthcare. They are clearly worse off then anyone who makes it onto MN.

That’s exactly it! I always thought £1k was expensive so the fact my mortgage will eclipse that sounds omg huge, even though it likely is very manageable

OP, I hope I didn’t sound snarky or jealous in my earlier comment. Don’t get me wrong, I’m quite happy to offend if required, but I certainly don’t begrudge anyone a higher household income than I have and absolutely no offence was intended 💐

Our household income is just under £5k. Our mortgage is the same as yours (but we've were paying close to that in rent for over 10 years before we bought, and on a lower income, so we haven't had that sudden jump you've had; it's just normal for us). Our childcare cost when we bought last year were around £700 per month (reduced now as dd started reception) and we're fine. Always have money left over for savings/pensions/fun. I certainly wouldn't describe us as struggling.

So from my perspective it seems as though you'll be fine, it's just a shock to the system to have to pay so much more every month than you're use to (I'll be in that boat when we remortgage)

Your new financial situation after getting your mortgage and your combined income is more than affordable. That said, my point is, you're taking for granted having a mortgage, when it's not something everyone can afford. Getting the deposit together alone is like climbing Everest for us financially. If you want to know if your repayments are too high think about this: I'm going back to work part time because there is absolutely no way we can afford nursery for two full time as my full time income is £19k BEFORE TAX. Our combined income after tax is £2,350. Rent + bills + shopping £1,700. The leaves us with only £650 to live on for 4 weeks, however if you take into account any unexpected expenses like clothes/garage/etc our real disposal income is £200. There you go, you can do the maths. I'm going to try to say it bluntly: your post is a very, very stupid question.

No, you’re projecting your insecurities onto me. It’s not about taking it for granted because what does that even mean? I’m in a probation period for my role, with a high mortgage and if I lose my job… that’s a real problem for us.

there’d be some that might say you should’ve thought about your income before children, especially a second. I’m not one of those. I went back on condensed hrs with both of mine as did dh when they were both in nursery because it is eyewateringly expensive. And to be clear, I wasn’t earning what I am now then. Neither was DH.

perhaps consider retraining if you can if you’re not satisfied with your current salary.

@Suchardchoccy inverted snobbery again, whilst I have every sympathy for your financial situation, what relevance is it to what the OP was asking? She should walk around grateful that she has worked her way up to get a higher paying job than people who earn £19k? She should not be allowed to be shocked and worry that her mortgage has almost doubled! Life is still tough regardless of what salaries people are on.

There will always be people with £10, £100 or £1000 in the bank. Why should the ones who have more be made to feel dreadful by the ones who have less? It's all relative.

I agree, it's all relative. However the point I was trying to make was to add a little bit of perspective into her worry. I think my post is relevant as to the amount of people moaning and being completely ignorant of what the average household is. Of course there'll be people with different amounts of savings/incomes, that's not the point. Think about this, someone who's managed to get a job worth £3k a month is not stupid. So to post that question screams attention seeking to me. Looking at their financial situation and being shocked because she thinks their repayments are high makes no sense, anyone can see they'll be more than fine! And I'm not the only one who sees it that way, just read the rest of the replies. Have you found any that says: "oh god you're going to struggle what were you thinking getting that mortgage"? She knows they'll be fine, and that's what pisses me off, coming here to moan about a financial situation many, many people would give anything for. I'm not trying to make anyone feel sorry for our situation, I'm perfectly aware of it, not everyone happens to have a combined income of £6k after tax, that's all.

Not at all! It means you've managed to achieve a situation a lot of people can only dream of. Unless you do really badly I'm sure you'll pass your probation period. I'm very sure the bank wouldn't have granted you a mortgage if you were going to lose your job, but anyway. I hope that doesn't happen, of course. Our income and children have never been a problem as we knew what we refused to when we started our family and committed ourselves to our goal regardless of money (which was never a problem, we simply don't drive a Range Rover and shop at Waitrose, if you know what I mean). I understand some people will want to secure a decent job and have a steady financial situation before having children, but that's not us. You're not one of them, fair enough. Of course I'm not satisfied with my salary, but I can't progress whilst on maternity leave, being a mum means putting your career aside although that's a different story. Yes, I know, nursery is expensive, but believe me if we had your income you would not be hearing me moan about expenses. And that's the point I wanted to make with my post: your financial situation is ideal to me, might not be ideal to others, but rest assured you won't struggle. All the best.

Yes you're fine and amazing. Most of us pay what you pay on half the earnings. Why make the post? Are you that poor at maths? I doubt it

I'd hope they were bad at maths to have to ask for reassurance on that income , when most people pay that on rent and earn a fraction of that wage. What response do they want, that will actually change their decision: none!!

The general affordability rule used to be housing (mortgage or rent) no more than a third of net income. So you are well under. Hopefully nursery costs will reduce soon but you have almost £4k left after mortgage and childcare so that should be plenty.

being a mum means putting your career aside

No it really doesn't, that's a choice you've made.

There is a reason people dont talk about money.

I this kindly, what value did you think people with owned outright homes or low monthly payments for social housing were going to add to the conversation or your decision?

Your situations are not comparable so their life experiences aren't going to help you understand your affordability.

Respectfully disagree! I’ve used both of my maternity leaves to get more qualifications and secure a new position (with more money). It’s a question of choices. I wanted to progress, not necessarily to be a high flyer because I really don’t care about my career title as it were, I care about my income and the reason I care about that is for me kids.

I made sure I secured a property before having kids as I knew after having kids it would be infinitely harder, again choices.

yes we will be ok, it’s affordable, not palatable (as in who would want their mortgage to double) that’s what I said in my OP, this is ok right? Doesn’t sound like a crazy high number all things considered

6K income. £2150 on mortgage and childcare costs. So £3850 left over after paying mortgage and childcare.

So maybe £3350 left after household bills.

I can't for the life of me understand what you are concerned about. You're basically loaded.

After household bills and other expenses (none of which include debt or higher purchase) it’s about £1k, which does seem ample, but after sinking expenses it’s about £700 savings so about £350 each. I did a bank calculator on cost of living support on my income (on my lower salary) and it said I wasn’t saving enough (I put in I was saving £400 a month)

sorry I'm a bit lost here. what do you mean by sinking expenses? are you saying that you and OH each have 350 each month for clothing and fun? or are you saying that food needs to come out of that 700 too? are you saying that you're spending nearly 4k a month on HP, debt and food?

As part of a budget we do £100 a month for family fun (eating out, days out etc) so that’s built into expenses. Food is built into our expenses (£500/600 a month)

we have no debt. But yeah when our mortgage increases we’ll be spending more than 4k on mandatory expenses

so after food, mandatory expenses, 100 a month for family fun, you have 700 left? I can't imagine where the other 3k goes but still this is loads.

So mortgage £1350
bills £1500
childcare £800
transport £500
car stuff £150
insurance £150
family fun £100

there’s something else I’m Forgetting