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.

£3, 700 a month for a dream house? Are you buying Buckingham Palace?

How should we know when we don't know what all your other bills are? Probably best avoid the huge mortgage if you don't even have the common sense to understand no one here can answer your question.

Use the 65k savings to pay down the mortgage amount so your payment is less

Depends where you live, my rent is 3500 a month and its a standard 4 bed detached with a small garden.

Doesn’t it just! And it’s that tiny missing detail that’s missing that shows us all it’s a fake post.

Also relevant if one person earns £2000 and the other £8500.

Plus other debts.

I never understand blatant fake posts and people assuming it’s a stealth post rather than just some bored troll.

Our income is 8500/9000 per month and our mortgage is 3100 and it’s pretty horrific tbh. ( it went up ALOT when the rates changed and our offer ran out. We never would have signed up for this)

Ffs

£3,700 a month here wouldn’t get you a 3 bed semi.

You can’t be serious calling living on almost £6k after housing costs as “horrific”?

£3500 a month that you aren’t investing in anything is utterly crazy money. 😳

Yeah I can. We have a lot of other outgoing ( maintenance, lots of kids activities, commuting etc etc) it was 2k when we started and we were a lot more confident and comfortable at that price point.

Hahaha please. OP has to be a wind up.

Here? Where’s here? I have many skills but being psychic isn’t really one of them.
i live in a fairly affluent area in Manchester, my mortgage is just under £700 a month for a sizeable 3 bed semi with a garden to the front and rear. We are relatively close to 3 major shopping areas, public transport links, schools and so on!

Not enough info:
Net or gross
Accepting that mortgage and childcare will be £4700, what are the other fixed outgoings:

Utilities
Council Tax
House insurance
Car Costs
Phones/TV
Professional subscriptions
Emergency maintenance fund

Variable

Hair cuts
Dentist
Gifts birthdays and Christmas
Holidays
Fares/lunches
Another child

Not enough info @JaneEyre40 but I'd be minded to say you are planning this in an unstable economy and the property market is flat lining and potentially will fall. I'm not sure it's a risk I'd presently take and we took big risks in relation to property in the 80s/90s.

What will your equity be?

I presume one or both of you are of high intelligence if you are earning this much. I am therefore baffled why you are unable to calculate the affordability of your mortgage.

Maybe seek professional, independent financial advice?

I'm assuming net pay
Stress test on interest rates.
Is any of the current income bonus
Could one person lose their job
Is this a repayment mortgage? Could you get interest only and overpay as if an interest only, then you aren't as stuck.
How many kids do you have / ages- do you have nursery / university fees to cover.
If you weren't paying off the mortgage, where would you put this cash... Pensions? Investments?

Yep, we have a property we rent out in another area, but we needed to be near a particular school and we cant afford to buy in this area. There is literally nothing to rent, the catchment is 1 mile and its the best school for 50 miles. Child with SEN and needed to ensure he got in here for facilities, but no echp as high functioning so had to be on catchment.
Does give us the flexibility to move easily in a few years, so will move away and downsize once kkds are through secondary.

Poor thing. maybe set up a go fund me page?

Home Counties. You’re looking at £800k for a 2 bed terrace - deposit of £120000 gives you repayments of approx £3600. We have a 4 bed semi and are paying £5700 in mortgage repayments.

It is high to be fair! We earn a bit more and have similar savings and our mortgage of £2.3k keeps me up at night! I worry what if one of us loses our jobs (I earn more and my job is difficult to replace) or what if interest rates go crazy. I'd recommend a very long fix where possible, we fixed for 10 years a few years ago and will fix for 5 or 10 next time. But if your jobs are more easily replaceable then I'm sure it'll be fine! I dream of downsizing to a 2 bed in the future! 😁

Is the income after tax?
If so, why are you questioning this - what are you unsure about?

Of course you do. You have £5k per month left over to eat, heat your home, run your car / commute, and enjoy yourselves. That’s far more than most people. If times turn tough you’ll have several cut backs you can make before life becomes unaffordable.
That said, I’d maintain high savings levels and ensure you have life insurance and critical illness cover. Your position could rapidly change due to redundancy / disablement / ill health / death.

Or why they are relying on mumsnet for financial advice.

If you thought it was normal for your mortgage rate to stay around 1% you must be very naive.

@JaneEyre40
How many DC do you have?
Are you going to have more DC?
Are you planning to send DC to private school for primary and secondary?
Which region do you live in?

If you have multiple DC and plan on private education all the way through, then the answer may well be 'no'