To think our mortgage is not affordable ?

[Anxiousaboutmortgage]

I am watching another thread on this topic and it got me even more worried about what we are about to do!
We are about to buy a property that costs 680k with a deposit of 115k
Our take home pay (both working) is 7980 per
Month our monthly mortgage (fixed) comes around 2888
Is that too much ? We are moving for better schools our kids are 5 and 7 and ideally this will be our "forever" home
We will have around 20k left from our sale for any needed work and we have another 20k of savings
We don't have any car loans etc . Our current mortgage is much lower though which scares me A-lot !

Depends entirely on your other outgoings.

Presumably you've worked out your monthly expenditure?
Do your living expenses come to £5k a month?

I'd say that's fine - it's just over a third of your pay but you've got 5 grand left to play with! It really depends what your other costs are though.

Is this a serious question? You'll have around 5k a month to live on!

You’ll have £5k a month spare which should be plenty as long as you don’t have very expensive childcare fees or private school fees.

Sounds perfectly affordable to me unless you have crazy outgoings in another part of your life. It's a big number but so is your income.

Literally no one can really tell you what’s truly affordable or not.
It’s a large mortgage relative to your incomes, are you both working full time now?
It obviously limits either of you needing to drop hours around the kids, you still need childcare, do you want nice holidays etc.
It really depends on the type of lifestyle you want.
Look at your full costs now, as in month to month expenditure - bills and ad hoc spending, and look at bigger yearly costs, car insurance, Christmas, how much do you spend on birthdays, holidays etc.
A “forever house” that means you have to penny pinch on your current lifestyle will feel like a noose.

How secure are your careers? Can you afford good insurance for critical illness, income protection, etc?

It’s a big mortgage but you’ve got a big income, but can you maintain that big income?

Btw £20k doesn’t go far on house renovations at all so I hope it’s for decoration rather than anything major.

Like everyone else says, it depends on your other outgoings. Our mortgage combined with all bills (except food) comes to 50% of our income. Obviously that’s fine so have you worked it out that way?

Is this one of those posts where you want everyone to comment on how much you bring home every month?

You must have got a decent rate for those repayments on that amount? Certainly less than 4%.

I'd be basing repayments off a higher rate and banking the difference. If you couldn't afford any rate rise then I'd say you've borrowed too much. If you can well there's no problem.

It should be ok, the whole thing is just very 'big numbers' compared to some.

If you're having to ask Mumsnet about such a decision alarm bells would be ringing for me. Surely you've worked out you can afford this before committing it to it.

Unless this is some sort of brag about buying a 680k house with 5k a month still left out of the mortgage. You must realise you are in a position most of Mumsnet (and the country) could only dream of being in.

Jesus. You poor thing

Perhaps get second jobs evenings and weekends to supplement your income?

Be really strict with your food budget - say, £100pm

Invest in really good shoes and walk everywhere - good for health too!

I'll have a think about other ways you could stretch your income and reduce your outgoings

There is really no need to. She has £5k a month to play with

Our take home pay (both working) is 7980 per
Month our monthly mortgage (fixed) comes around 2888

Depends massively on your outgoings and the size of the house (Comparing, a 3 bed semi 1600sq ft vs edwardian 6/7 bed 3000sp ft energy will be 200-300 more then theres water council tax etc to consider too)

Equally if you have significant childcare costs

If its sensible size and childcare is a grand or less annnnnd you arent servicing debt or paying £800pm on car debt... it's prob fine...

For me it would depend how much I would have left over if the interest rates went mad. We bring in roughly £4500 and our mortgage is 800, if the interest rates doubled we could just about afford it especially if I went full time.

It's partly why I don't want to buy a bigger house in the future, we would never be able to afford the repayments if the interest rates went to 10% or more but then again how many people could even for the cheapest house they could find...

As it stands with average outgoings and 2 kids you will be fine, we manage fine with what we have left over. We can't afford a life of luxury or an overseas holiday every year but we are comfortable day to day for food shopping, kids clubs, outgoings etc.

You'll have more than double what most people have to live on left over every month.

I'm sure you'll survive.

Can you really not work this out? After you’ve paid your mortgage you would have more left than our household has for everything. Unless your other cost are astronomical you’re being disingenuous.

I think they were being sarcastic.

She's really worried about the affordability though, so will welcome any suggestions how to make certain they can cope............🙂

It’s fine as long as you get redundancy insurance.

This. If you are still able to get this type of insurance (I know many providers stopped offering it as it's not the same as mortgage insurance).

I have it and despite having never been out of work for 20+ years. I am the higher earner and facing a very uncertain time in current company. Knowing the mortgage and bills etc are covered give a huge sense of relief. Although only 12% of my monthly earnings are covered it does just about cover out mortgage which isn't much. As long as you can cover a mortgage for a while should either of you lose your jobs I think it's ok.

Can you take in ironing to make ends meet?