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.

If you've already made a spreadsheet with all other expenses, how much would you be left with each month?
Personally I wouldn't do this as we prefer to have more disposable income to buy whatever we like/have nice holidays but if the dream house is more important to you then go for it.

Haven’t read the whole thread. Many people are jarred by your post because it’s clear you CAN live on the mortgage easily if you want to, just by doing some simple maths. You’re posting on a public forum where the vast majority of users can only hope and pray to reach the sort of income that you are listing, and manage to pay rent/mortgage/etc of similar amounts. And that’s not because they aren’t working their arses off! l

To say you have a stressful job … irrelevant, so do I and I earn a fraction. My mortgage is less by comparison but it takes 30% of our household income. Nursery fees, same amount as you. I think it stings people when so many are struggling on so little, not because they haven’t worked hard, but because costs of things are extortionate and most wages don’t match simple living at the moment.

You need to budget and look properly at your outgoings as it is completely subjective, if you post on here know and expect to be judged unfortunately. ‘Not feel pressured’ stings to people too, I know damn well that I cannot afford a broken boiler or car, my savings are minimal and most months we dip into them. I feel pressured every month! Not sure if you know that feeling?

It irks me when I think about those who have minimal/no savings and who are getting by, getting on, without the luxury of a huge savings pot to dip into. It’s real life and lots of people have no idea what it is like to struggle financially.

No, what I said was....

asking for financial advice and not stating whether she was talking about net or gross salary.

But apart from houses, I don’t understand how? The 6 grand is left AFTER the big mortgage and childcare, so why is London so much more expensive for everything else?

ETA: These threads only ever seem to be made by Londoners.

So not stating if it’s net or gross in the OP makes her ‘have no concept of finances? Really?

Sounds like you’re just looking for excuses to have a go at her tbh.

I have no idea what stoppages means either, it’s not a commonly used term IMO.

So, if you've asked a question and someone asks you for information but you don't understand one of the terms, why not just look it up - you know show some initiative and be proactive. Look up what it means and be able to reply with an answer, rather than another question. It was just a single word, not a whole concept that needs explaining.

I mean, it can just even be that she’s doubling her mortgage and so eg left with £2k less each month than previously.

If the base take home is £9.5k, then they’re looking at c. 40% of their net pay, which is quite high and higher than generally recommended.

I’d be worried about a mortgage of this size, even if month-to-month you had money left over… you also need to think about the sustainability of it over the longer term.

I think you’re just looking for excuses to have a go tbh.

Someone mentions stoppages as something which might be relevant, not massively out there to ask what that means really is it.

Wow. Why are people being so shitty on this thread? Two high earners (and as such pay large amounts of tax) asking for advice from people in a similar situation are the subject of ridicule and vitriol. Just sums it up really.
FWIW OP our household earnings are v similar but our mortgage is a bit less (but we do overpay). I think we would be comfortable at that level but not much more. Larger houses are certainly more expensive to run and I imagine you want to be able to enjoy life as well.
Private school fees are certainly something to consider as I think we have all but ruled it out at primary (tho we have 2) for being too costly.
I say go for it if it’s your forever home. Good luck!!

If those issues were so important to the question you’d have put them in the OP.

Disappointed. I thought this thread was going to be about how we can live on the moon.

Of course you can live on such a huge income 🙄🙄🙄

havent read the thread
how many years mortgage.
yes you can afford now but if interest rates go up I imagine you have a big loan.

You're just picking part of my post to jump on.

I went on to say "Maybe no concept it a bit harsh, but to have that amount of money and to be discussing such a massive purchase/commitment, wouldn't you want to have a better grasp of what's what."

These threads only ever seem to be made by Londoners

Well surely that just goes to prove that London is expensive. "Real world" is such a dismissive faux teenager term to use too.

And presumably your kid’s salary makes up the difference? Because if you think that adds up to £10,500 pcm you should not be in charge of any financial decisions.

If you’d read even just the OP’s posts you’d see that she’s addressed that.

Ummm…. try that sum again.

Read the thread, the extra is her husband’s bonus. Why so snarky?

Your council tax is very cheap.

£230 a month?

In London?

Which borough?

Best start shopping at Aldi.

You’re right that’s 6k. 🤣 I missed 1k in the savings

Apparently you're not allowed to say "I'm looking for my tiny violin"...or it gets deleted.

Shocking response tbh.

Oh it disappeared 😆

I've been having thoughts about a similar circumstance, OP. Currently joint income is about 9k and looks like it may go up a bit more over next few years. Current mortgage is 1k as a safe option when I wasn't working 5 years ago. Looking to upsize now and the safe option to me is around 2.5k mortgage. Part of me wonders why not max it out. I have three scenarios in my head.

1. Go safe. Mortgage at 1/3 of income. Still affordable ish on one income especially as can keep saving to build up nest egg (will be ploughing it all into next home deposit). No worries if it all goes wrong.

1. Max out. What is the worst that could happen? One or both of you loses job. You'll survive for a while, mortgage will go on pause, probably find another job. Very worst case sell and downsize. The equity in the house will increase by more than the cheaper one, so you should be fine.

1. Very, very worst case - financial crisis, lose jobs, house devalues, can't sell, lose equity, lose everything. Divorce.

Its always a gamble. Bet it all on the kind of future that is very comfortable indeed. Play it safe and be, pretty fine but nothing special and try to resign yourself to not being jealous or regretful at peers who made good on their own bets.

I haven't decided yet!