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.

This post is actually in poor taste given that so many are struggling with the cost of living right now. You might just as easily have asked Chatgpt.

Exactly this! Where I live you wouldn’t get much for £700k either. The OP has a decent salary, but they might have only a small deposit and therefore need a big mortgage. Not everyone can rely on handouts from the bank of mum and dad to fund their property purchase.

It all depends on how the wage is split.

What are you currently spending a month? It’s the best predictor. When we try to budget we indulge in all sorts of fantasies about ourselves, regardless of how hard nosed we’re trying to be.

DH and I went through our bank statements line by line for a whole year and the difference between our beliefs about our spending and the actual facts were enlightening.

Also factor in the costs of owning a house like insurance, property tax, bin/water taxes, residents association subscriptions. increases in utilities if it’s bigger than where you lived before, maintenance and upkeep, and of course any works, furnishings, you plan on doing.

Oh stop it 🤣🤣🤣🤣🤣🤣🤣

We earn around this much too, mortgage around £1000 and utilities £500. You'll be fine!

Read the room?

You know this is the internet right? Big old room!!

Op you ask your lender or mortgage advisor or accountant these types of questions although usually ppl know this themselves but I doubt you wont buy the house so good luck and we couldn't be happier for you. 👏👏👏🥰

Have you won the set for life 10k a month @JaneEyre40 or is this just a thought experiment incase you do? Have you been window shopping on Rightmove?

Me too!

Though back to the original question... £10500 take home, absolutely affordable. But if that is before stoppages I don't think it's affordable.

Net

Ignorance here, what are stoppages?

Not sure you’re reading the room here 🤣

You'll need to do online surveys to earn a bit of extra money.

Thank you. The thoughts of going through my bank statements already makes me tighten my purse strings😬

I don't care.

Your tax, national insurance, pension contributions... just anything they take out of your wages.
You've said that the 10.5k is net - so I think you'll be fine. Unless you do have some ridiculously expensive habits or hobbies!

Ha ha very funny OP. You've missed April fools day by a number of weeks though .

Or maybe you're the fool.

No, it's actually happening, it's been a long time coming. Yes these salaries should be long term.

Are you planning any more children ? Could you cope it nursery fees go up ?

What's the income split? Could you squeak by on one salary if necessary? (That's always been my limit).

Do you have any plans to play school fees?

Why so little savings on such a high salary? Or it because most will go into the house purchase?

Is it a large/old house? If so what are the likely running costs?

No no nothing ridiculous. Thank you. I guess the worry is about cost of living, health issues etc.

🤔ok

Yes exactly, we put down a deposit of about £300,000. We thought putting more money into the deposit was better than holding back savings.

1 child that's it.

State school 100%

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

Large house but not old. Council tax is 230 monthly.

What condition is the house in? If it's in good condition then I think you'll be ok - it won't be particularly comfortable though. A house of that much is likely to cost a lot in bills and upkeep.

Think about the future as well, do you plan of having more children?

Do you pay monthly for a car or 2?

Our income is about 3/4 of your and our mortgage just over half and with all other bills, we don't find it comfortable.

Sorry?