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 !

Working through a budget will tell you a lot. If you have space to keep adding to your emergency savings after the move I would be less nervous.

6 months of all ongoing expenses is what we did. It lowers risk. If one of you loses your job, you would have a year, 6 months for a total disaster if you are both out of work. That gives you time to get back on your feet.

Could you hold off on any non-vital renovations, keep the “war chest” intact and save up for them instead? Longer process, but you would be in your forever home and prioritize peace of mind.

Can you tell us what income and mortgage payment prohibits someone from asking financial advice on an internet forum?

What are the chances that one of you will loose your job? Is it likely that either of you will be managed out due to poor performance or behavioural issues? If not and your only concern is redundancy take a look at your packages if I am made redundant I will be given 6 months notice, help to find another job and then 5 years of salary to tide me over.

I am feeling the same. We are paying 38% of income on mortgage leaving us around £3500 for everything else. It is not for a particularly spectacular house either but has everything we need and means we won't need to move again whilst our children live with us. Another move to a cheaper house in our area would probably have meant moving again and another set of solicitor fees and stamp duty to pay as we would have outgrown those houses. It does feel like the best choice but it's incredibly scary so I understand your concerns.

We have 20k in savings and around 45k in shares investments ! There is work in the house that we would need to do right away this is why the 20k left over from our house sale will be probably spend during the first year
In my head i am thinking if someone loses their job before we build up more savings we can use put investment pot
I will try to do a spreadsheet tonight pf all our expenses it will probably show me i spend recklessly ! I am pretty sure we will need a lifestyle change in terms of thinking before we spend ! We are both equally bad at it

I get it. You have plenty of money and yes, unbelievable as it sounds, that is what is classed as a normal mortgage in your income bracket. But how secure is your sector? How is the job market if one of you loses a job? How niche are your skills? You can afford to save £12-15000 a year, so maybe do that if you're worried about the future.

you have just shy of £8000 a month coming in and looking at taking a mortgage for £3000 a month, you'll have £20000 in savings so a 6 month emergency fund if one of you loses a job and can't pay the mortgage for 6 months

If you budget the £5000 left of your salaries each month possibly put £1000 into savings each month for 2 years to boost your emergency fund if you're worried. Then you'd have 16 months back up plan to pay the mortgage and one of you would still be working

OP I would say it is affordable but yes you will need to do a realistic budget that also covers council tax increase, likely higher energy bills etc.
I would also not touch the 20k savings and have this as an emergency fund as its 6 months of mortgage payments basically.
Also if you do a budget now based on what you have left over then you can probably put away a bit towards the emergency fund.

You can get insurance to cover ill health and job loss but it's not cheap however it might be worth the cost per month in comparison to the mortgage payments.

Sorry I just saw you had £65,000 in savings on top of your income and the "other savings" for doing up the house. I think you might be OK, there, OP.

Thank you ! Yes this is why we are just thinking to take the leap now rather than later ! It just sound like too much compare to what we spend now on mortgage which scares me as i am a bit averse to risks !

Op is definitely risk adverse....

What is one of you falls ill and can't work? What will your monthly income be? I would factor that in.

I Don't see us losing our jobs for bad performance but i am not sure about redundancies is definitely possible .
We are both in technical fields so we could get another job but it depends on the economy

We have a similar take home, but a much much smaller mortgage on a much more modest property. We are definitely not well off, nor do we have buckets of spare cash. Living is expensive right now. I think it’s about risk appetite. Both my partner and I have very low risk appetite due to being children of the early 90s (IYKYK). If it works for you and your lifestyle and it’s your dream home, the numbers do t seem too scary…on paper. But there’s not much wiggle room. Good luck, op!

Our income and our mortgage is similar, plus we have one child in full time nursery and its fine. We have about £750 a month 'spare' which goes on adhoc expenses like car tax, holidays, emergencies, savings. Sometimes it feels tight but not terrible. Why dont you do a spreadsheet of everything in and everything out and see what you are left with? That's what I have.

So your new mortgage payments will be about £1700 more than your current mortgage? Do you have £1700 spare each month?

Don't forget that if it's a more valuable house things like life insurance, home insurance and rates are likely to be higher, and if it's bigger repairs will also probably be more expensive. Heating etc might also be more depending on EPC. We stretched ourselves and moved into something bigger years ago, and all of these extra payments do really add up. I don't regret it, but I also hadn't really factored this in properly.

What's the rate on your new mortgage and how long is it fixed for? Can you afford if rates go to 7 or 8%?

I think with two reasonable incomes it will work out. I think finding ways to tighten the belt is good though. This mortgage will be something to pay off for years to come.

Many of us are in the same boat. I just take it day by day and make savings/tweaks where I can.

@ItalianDreaming we have an offer for fixed 3 years ! At the moment we overpay our mortgage 1000 pounds per month ( this is why we have a good equity) and save/invest another 1000 .
Is definitely doable but we wont be able to spend as we wish .
Insurances are all through work (life insurance dental medical) we do not have any other personal insurances Dont think we need to ?

We thoroughly went through our entire outgoings for the past year and created a budget based on this to be able to afford the house. We did have to take some budget from things like meals out, take aways and days out in order to pay more for home insurance/life insurance, but we still have £400 a month to save for house costs, enough budget for each child to do three extracurricular activities and personal budgets of £700 a year. On paper our numbers are doable so I am sure yours will be with a higher income. It is just the thought of redundancies or illness like you say- but there is insurance you could take out for illness and redundancy pay to give you time to find a new job. Go through the numbers and the worst case scenarios and work out a plan to alleviate some of the stress. Ultimately it is a slight leap of faith and only you can decide if it is worth it. If it's not you do have the option of a smaller less suitable house but you may feel what you are buying is worth the sacrifices around eating out to help save more of a buffer.

Can you really not work out that other people are allowed to have concerns in their lives regardless of your situation. Are you not allowed to worry about things because you aren't living in a war zone? The race to the bottom is tiresome.

You just need to make sure you have savings in case one of you is made redundant to tide you over to the next job. You can build those up. The fact there is two of you helps.

I also didn't see you have an extra 65k.in savings and investment- we don't have this at all. So you have your rainy day money already, that with redundancy should tide you over before you can get a new job.

The thing is, this is not a huge house compare to our current one is just one in a much better area ! But its by no means a great house ! It Needs modernising etc but since i we are planning in staying here until our kids leave the nest we can work on it slowly

What is the ‘need to do’ work?

This. Protection protection protection! Get decent policies and factor that into the cost. It sounds fine to me, it'll go down over time as you pay it off. Overpay where you can.