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AIBU?

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If mortgage is this much a month, what buffer savings is best?

6 replies

indodeu · 19/11/2023 07:25

Pay 1k a month and have 7k savings. Im a first time buyer, what do you suggest is a decent enough buffer? Is this enough?

OP posts:
ErnestCelendine · 19/11/2023 07:26

What is the buffer for and what do you earn?

IbizaToTheNorfolkBroads · 19/11/2023 07:38

You need to look at your monthly cost commitment. You don't have to buy clothes, go on holiday, eat fancy food, upgrade your phone etc but you do need to pay your mortgage (at least the interest, but check your terms with your provider), utilities, council tax, eat something, kept warm, travel to work. Add all that up, and multiply by 3 to 6 months, depending how buoyant your field of work is.

FallingAutumnLeaf · 19/11/2023 07:54

Exactly what Ibiza said.
3-6 months worth of essential spends is an ideal buffer.
Some won't be able to save, some will have more. But it's a reasonable target.

Baffledandalarmed · 19/11/2023 08:31

When I bought my first house last year these were my figures;

Mortgage monthly payments: £540
All other bills (including gas, mobile, commuting etc but excluding food): £580

Total: £1,120

Savings (when I bought): £15K

Savings now: £11K (won’t be happy until it’s at £15K as that’s a year and I’m VERY cautious).

But that figure includes me having to deplete savings for emergency purchases (plumbers/electricians.) I had a full survey done and there were still a few niggles that needed sorting. You should expect similar niggles that will need fixing etc

IbizaToTheNorfolkBroads · 19/11/2023 10:45

Also bear in mind, that if you reliant on paid-for childcare to work, then you'll need to carry on paying for your place if you get made redundant if you'll want it back.

BarbaraofSeville · 19/11/2023 11:15

Depends on your other expenses (childcare, car payments?) and how secure your income is. £7k will run out pretty quickly if you aren't earning.

Ideally you need to be adding to savings every month to build your emergency fund and allow you to pay for irregular expenses out of savings not income, not spending all your income each month basically. Also consider whether overpaying your mortgage is possible.

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