To think we CAN live on the mortgage

[JaneEyre40]

Advice please -

Couple - Earn £10,500 a month
Mortgage - 3,700 a month
Nursery - 1,000 a month

Considering all other possible outgoings, do you think we can afford this and not feel pressured each month. What am I not considering? We've done the spreadsheet but I'm still unsure.

We will have about £65,000 in savings at the beginning of this venture.

Thanks in advance. House of a lifetime.

What jobs do people actually do to take home this sort of money?

I think you’ll have plenty! But then it depends what you mean by afford.

Whilst it all sounds very doable with the things you’ve listed I would be cautious purely because of my back ground.
My parents brought their dream home when we were younger, all fine and doable at the time.
One parent (higher wage earner) then become chronically unwell with. Life long condition and had to give up work.
The pressures of keeping the house (because one wouldn’t downsize) cost them their marriage so the house had to be sold anyway.
If it’s your dream then I would say go for it, however if you can’t afford in with one wage or have to rely on commission/bonuses then the dream can become abit of a nightmare.

I hope you dont work in Finance

Couple - Earn £10,500 a month
Mortgage - 3,700 a month
Nursery - 1,000 a month

Salary 1 - 4,200 monthly net
Salary 2 - 5,200 monthly net

4,200 + 5,200 does not equal 10,500

My best advice to settle your mind is get income protection and critical health insurance so if anything happens you are covered.
It won't be long until your child starts school so no big nursery fees.
Get a good mortgage broker to see if you could get a better deal. Highly recommend Cheshire Mortgage Group.
Also being savvy for example, use go compare for car insurance renewal. Water metre saved my mum £20 a month, getting the best details for the broadband, being in contract makes it cheaper. Check your electric and gas tarrifs to make sure you are on the best deal. Try to keep saving as well.
Also check you are maximising pension contributions with your employer. Make those savings work for you, I take it you are maxing the cash isa which is tax free to save.
Trry not to stress, you are in a brilliant position with good savings. Also follow Martin Lewis, he offers great money tips. Also use top cashback helps.Hope this helps.

This was my husband and I’s wage split before I needed to reduce my days down to 3 days to take care of my Mum. It’s been a brutal reduction from my end!! But it’s not something we could plan for. We now take home circa £5,250 and £2,500 (including pension reduction for highest earner) and our mortgage is £1610. Nursery is £600 which will reduce down to £400 when the new funding come in in September. It sounds like a lot but we actually have no money left at the end of the month and I wouldn’t say we do anything!! We rarely eat out or have hobbies…

There’s a forum on Reddit you may find will have better answers than MN too @JaneEyre40 it’s called HENRYUK. (high earner, not rich yet) for those earning over 100k.

That would be doable.

This.
If is about 5000 each and one lose the job the dipping in the saving won't harm much in a couple of months. If the split is 9000 over 1000 the savings may suffer if one lose the job.

Thank you, what's top cashback?

Senior manager and Supervisor in a specialist industry.

Can I ask what your career paths have been please? I would desperately like to have these problems.

& OP also factor in if you both want to stay full time. If your little one is still quite young you don't know how you'll feel about this in a few months / year.

Here's my tiny violin. How will you possibly cope.

Otoh with that much money, surely you can work this out for yourself or pay someone to do it.

@Gloriia It doesn't matter if your monthly income is 1k, 10k or 100k. More than a third of it shouldn't go on a mortgage. Use your savings.

It absolutely matters if your monthly income is 1k, 10k or 100k. The basic rule of thumb might be to spend less than a third on a mortgage but: a) it's guidance rather than a hard and fast rule, and b) it really doesn't work at the higher and lower ends of income distribution. Those who have a very small net income will need to spend more than that, and those on the higher end can afford to do so because of the £ value of the disposable income after housing.

I just double checked, it's 2832 a year.

Thank you. I work in education and my OH is in a creative industry. We both worked our way up to management level.

Thank you, I only play piano.

Exactly!

Well obviously....

If you don’t intend to move for a long while it’s probably fine. I would focus on building savings and then investments afterwards for the longer term. Under £3k on your mortgage I think would be a lot nicer place to be.

Council tax is insane, it varies massively for unclear reasons.

That's what I think. However, our lifestyles have changed since baby came and I think we are saving a significant amount due to not doing anything not baby related 😂

Senior manager that can't add 5200 and 4200....

We earn together less than one of your salaries, yet our council tax is higher.

Aghast you can't work this out for yourself tbh. Just shows salaries don't reflect common sense.

Maybe I am very stupid.

Yet here you are on mumsnet.