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.

Well you could, but I wouldn't. That's a crazy amount of mortgage. I wouldn't want to spend that much on a house unless I'd won the lottery and could buy it outright. But then I don't really have that house of lifetime fantasy. Feels like too much pressure on bricks and mortar to make you happy.

Not naive no and as you’ve pointed out, we can afford it. Doesn’t mean I have to be comfortable with it though!

These type of threads drive me mad when posters don't state NET or GROSS income.

If it's net then it's a non-issue, plenty spare.

If it's gross - and earned by one person - it could mean going into debt each month.

We get "earn", "make", "bring home", "income", all sorts of colloquialisms, and I've seen every one of them used interchangeably as net/gross, and yet we're supposed to guess what the poster means.

Why can't people just be clear?

lol, stealth boast much? Oh come on op!

Yes I often wonder this about posters. They are apparently on huge salaries but appear how do I put it politely, a bit dim.

How are you able to earn that level of income but not be capable of using your own brain to decide on financial decisions?

It really depends whether the sun is net or gross. Any answer is irrelevancy without knowing that (and if Gross, how it's divided between you)

Have you checked your benefits entitlement?

Target all fixed costs as 60% income if in a position to do so, (car payments, insurance etc. also to be included in fixed). 5% savings, 10% investing (funds etc.), 25% guilt free fun spend. Look up Ramit Sethi with that level of income.

No. Because the person who I was responding to was obviously going to reframe it as people being jealous.
But, sure, I suppose my comment could be read that way. Perhaps I should start a thread about my income.

Depends wether the house is livable as is doesn't it ?

If this is a reno project where you going to "just" replace the bathrooms/kitchen or a fully knock down-rebuild I'd back out if your also paying for nursery & savings money

Not really, my husband takes home about £7000 after tax monthly (earns roughly £140k in a construction job) and I earn £3k a month in my pretty standard job.

to answer OP, it’s obviously affordable for you but not something I’d feel comfortable with. Perhaps because my husbands job is not the most secure line of work, and my wage alone wouldn’t cover a mortgage that high if he was out of work. Think about how secure both your jobs would be in unstable conditions.

How can anyone answer this? It depends on what sort of lifestyle you want to live?

Have you asked your husband for help with the numbers?

Yes. But I’m not starting threads that are impossible to answer in without the key details solely so people can be in the loop about my financials.
But I do accept the irony of my comment 😅

Do your budgetting properly.

What is the council tax and insurance on such an expensive home?

Do you need two new Range Rivers on your drive, or an 8 yo Skoda Fabia?

Do you go ski-ing in Whistler , and summer in St Barthelemy?

Is this figure before or after pension contributions?

Apply basic common sense about job security etc, cost of the insurances you would need to protect such a decision (life insurance / critical illness etc)

You can work all this out, we can’t.

And harsh though it is you have asked for the flaming because without basic budgeting and planning ability, AND asking questions without giving the necessary info for an answer does make people living on normal salaries wonder how on earth people manage to gain this kind of income.

I would hope one might have a modicum of intelligence to have a well paid job.

Otherwise just reinforcing my view that as a society we value BS jobs filled with halfwits far more than anything that is actually meaningful or useful!

My brother is a GP, terrible with finances. Really not uncommon.

Whilst i understand your predicament I’ve never understood living in a particular area just to get your child into a school (although like I say because of your predicament I understand it, but some people do it for the status. There is one in my area, and it’s so sought after that even living in as 1 mile radius doesn’t guarantee a place). My son is also high functioning and has an ehcp, but there is a low birth rate in his cohort so we were doubly lucky. We moved into our property 3 years before our son was born. Tbh I didn’t even consider schools when I purchased it.

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.

Still cost that today or did you buy some time ago?

Whilst i understand your predicament I’ve never understood living in a particular area just to get your child into a school

It's not that wild tbf

If you can't work this out op then I suspect it's not you responsible for the majority of that income. Bless you.

Ask your oh. I imagine he/she will be more able to do the hard counting 💐

I’ve just remortgaged if it makes you feel any better and we have a large number of years left on our mortgage. I don’t think it matters to be honest. I may have made overpayments (I haven’t) borrowed extra (which I have). We also got the property for significantly less than it was worth because the family wanted a quick sale. If we were to buy now we are looking at paying between £50,000 to £80,000 more than we bought it for. Just lucky, lucky circumstances all the way. I by no means live beyond my means and have to cut my cloth accordingly!
Regardless I’m with others, the OP is tone deaf!

It depends entirely on lifestyle. We have a combined £10k a month roughly after pensions etc... One child in private school @ £1300 a month and mortgage of £2k. So we have about 6.5k a month to live on. We spend £1,200 on bills (inc healthcare) no loans or car finance. Spend around £1k on food. That leaves us around 4k. We put £1.5k away in savings, £1.5k a month towards holidays and spend £1k a month on days out / clothes etc…, so this amount is right for us based on our lifestyles and is the reason we haven’t upsized the house.

Depending on your outgoings and what you need to put aside for savings, holidays, cars and other large purchases, only you can decide if it’s enough.

You might have to buy some empathy and that shit is expensive...

DH might need to hop onto OF and shake his belly like a bowl full of jelly.

Oooh, OP, tough one: I guess if you've PCPs on a couple of new Range Rovers, and a nanny or housekeeper, that'll reduce you to living on £1200 a month — so then you'll be living like me. Which is fine, I manage to live pretty well on that. But you won't be going to St Barts in January or skiing in Zermatt for a few years.