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.

It depends. If the higher earner lost their job, could the other afford the mortgage and other bills? How easy is it to get a similar paying job?

Our income is roughly similar but DH brings home way more than I do, and we'd struggle with a mortgage that big if he lost his job.

A mortgage of £3,700 won't cut it.

Charles is holding out for an offer of over £800,000.

So you have 6k spare…… I’d swap!

Brilliant.

Also "earn" and "get paid" don't always equate.

Well neither did we until we looked at the secondary option near our previous house.
It had so many horror stories we had to think realistically if he would cope there.
A friend of his who has SEN did end up going there and it has been awful, the child is now not attending school due to bullying, lack of support etc.
It was a must for us and our son is doing really well.
I can understand even without sen wnating to move to a good school. Some schools have problems and some are excellent.
The secondary our son goes to is state but has a voluntary yearly payment of 300 quid per child for example, which is about 500k of extra funding they have. Plus they have benefactors and 'gifts' from weathier families from the area. The grounds and buildings are immaculate, they dont have a problem with recruiting teachers. Their sports facilities are brilliant, the compete in the same leagues as private schools.
I don't agree with the disparity, but compared to the run down school that looked like a prison near our old house, its a world a away and I can see how it is so oversubscribed.
I think there were 3000 applications for 270 places.

Today it looks like you can comfortably afford it on paper.
consider the future:
retirement age?
maternity leave?
interest rate increases?
sickness?
unemployment?

I don’t think it matters to be honest

We also got the property for significantly less tha was worth because the family wanted a quick sale.

😆😆😆

Of course those things matter when you are making comparisons!!
My house was almost half the price than the neighbours that had just sold. So me saying my 2k mortgage gets me a 3 bed terrace in my area is BS because it doesn't now...

I'd strongly recommend your husband put £40k a year into his pension at that level of earnings. Use an income tax calculator to see how little it would cost you every month.

It was slightly tongue in cheek! Lol

Regardless, no one in my area would be paying nearly £4k a month on a mortgage. It’s silly money (in my area) and since the OP doesn’t state where they live I’m absolutely going to make comparisons.

YABU for posting this on AIBU. And you know it.

As much as everyone is taking the piss a bit with the responses, I’d be very uncomfortable taking that level of mortgage even with high earnings. If one of you loses your job or needs to step back, you’d have to sell.

You have to imagine yourself paying that out with another kid in nursery or if you wanted private school fees. You’d likely be paying that level until you retire. It’s a mega commitment for many years.

Not unusual for people wanting to buy a house in London now.

Less than £700k at 4.5% over 25 years.

🙄🙄

Thank you for the advice, we have looked into it but saving as we currently do is the better option for us atm. Part of his income is tax free so we don’t suffer that much with the tax trap.

We (I) do review this periodically, I’m pretty good with tax etc whereas he is bloody useless 🤣

I think you’ll be fine. This is my household income and we have the same mortgage but instead of nursery fees we have school fees of £2.5k pm which does make things feel tight sometimes. If we had an extra £1.5k on we’d be laughing. That said, we spend a lot more time at home as we now have a big garden so naturally spend less.

I have nothing to say except that the shortened version of the title in Trending was "To think we CAN live on the mo.." and I thought it was going to be "moon".

What possesses people to post these threads 😂

Maybe MN should create a separate section for high earners, so they can discuss their ponies and diamond shoes with people who understand their unique problems.

The salary split would be crucial here. Best advice I ever got was only take out a mortgage you could both afford on one wage. If you or husband lose your job or become sick and can’t work then you might struggle.

Or take out decent income protection/life/critical illness cover.

You can comfortably survive but you may be limiting other choices you could have made like private school or more frequent and luxurious holidays. Clearly there is a lot over but monthly costs will eat into that and you will find that you don’t have funds for a lifestyle you could otherwise afford with a non dream house. It just depends on what you want to prioritize.

Also you need to look at whether you can absorb mortgage should one person lose their job, although savings indicate yes on that one, and whether it is likely you find equally well paying jobs in case of eg redundancy. Factor in other standard issues like planned years until retirement etc, but you can always sell at a later date and downsize if push came to shove.

Hypothetically, if I replied "oh, fuck off", would I get into trouble?

Put 60k down alongside other capital to reduce the mortgage. If one of you lost your job due to ai would you cope. If you split up would you manage the mortgage.

I mean yeah you’d have to with that mortgage.