would this size mortgage scare you?

[lucykate]

we have to move with dh's job to a different part of the country. to get a house the size we would like (4 bed, so we have a spare room for visitors as we're moving away from family), would need to spend about 250k. will have 90k from sale of current house, so would have to borrow about 160k but it scares me borrowing that much.

it would only scare me if i couldn't afford it.

if you know you can make the repayments then no... wouldn't scare me

yes I would cack myself if I had to borrow 160k

I gather the ave house price in the UK is £200k atm so this doesn't sound outrageous and no, it wouldn't scare me, esp with that much equity.

WE are looking at that size of mortgage and the repayments are only £150 more than our £100000 mortgage we are going from repayment to interest only for now and the look at remortgaging when the kids are at school!

no. unfortunalty round here is 160k will get you a 2-3 bed, 250k a 3-4 on the good side of town.

we don't have any other debts than the mortgage, no credit cards, loans etc, we tend to buy big things by saving up first. dh is moving to a pretty secure, quite well paid job and if we are careful each month, yes, we could afford the repayments (think it would be in the region of £800/£900 a month), but it just gives me palpatations having a mortgage that big.

whereabouts are you moving? not that it makes a difference... jsu tbeing nosy!

we're tryingt oget a mortgage atm and the repayments on £153,500 are going to be around £950 a month

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from lancashire to leicestershire. dh has already started the job so is now away monday - friday every week, leaving me at home with dd and ds. luckily at the moment i'm still on maternity leave but my work know nothing about all this yet. as far as they know i'm taking a whole year off, but obviously i won't be going back.

in the area we'd like to move to 250k buys a 4 bed detatched with garage. where we live now, it would cost alot more for the same.

We've just bought a 4 bed detached (I hope.....waiting for missives to be signed!).

As a result we are jumping from a £36k mortgage to a £118k mortgage! I'm CACKING myself about it! But its as everyone says.... if you can afford it then why worry.....

BUT

It's still a worry. Our current mortgage is £230 per month which isn't that hard to muster if we're struggling. But our new mortgage will be £600 per month, plus a big jump in council tax. Thats whats scaring me!

quiver

well if you earn £20k pa then yes I would be worred. If it is £200k then no not at all

TBH our first mortgage was bigger than that for a weeny 2 bed house! So to me in London it doesn't seem much. But of course is totally dependent on your income and expenditure

When we last moved mtge jumped from £112k to £168k - I was sooo scared. That was 5 yrs ago & we now owe < £130K, but have had to make a few minimal repayments due to changed circumstances - soooo greatful for flexible mtge.

lucykate,we are in Leicestershire.Dh is from Lancashire & says that you will need to bring some decent pies down with you

Have you found a house yet?

mine's bigger .. eek

What would the monthly payments be like? Ours are 10% of net monthly income and we are scared to go any higher.

Cstina7 - Thats quite a low percentage! I'm sure the avergage is 50%!!

My new mortgage payments when we move will be just short of 20%. Thats as high as I'm willing to go!

If you can afford it without unsustainable overstretching and it is not a ridiculous multiple of your joint income then there is no real reason to be scared.

Gosh, 10% of net monthly income ..... if only!

depends on income, we did same as you lucykate
bought £225k house with same equity as you, we manage absolutely fine, and I think mortgage (so long as you can afford it) is an acceptable level of debt.

I know it is low at 10% and we really should have more money left over than we seem to have...

Cristina7 - OUr current mortgage is about 5% of our monthly income and we don't seem to be able to get out the overdraft each month! But our childcare is a huge expense.

We repay in repayments and endowments just shy of £2,000 a month.

We are permanently broke, we are kind of sort of OK, but when we took this mortgage out we had not budgeted on Gas and Electricity and Council tax shooting through the roof. It really makes a difference.

Nor had we budgeted on the Dot Com bubble bursting so quickly.

Or for that matter DH going profoundly deaf and getting a new job on 15 k less, not as a result of the deafness but more us, going to a sensible place in the IT world which we used to scorn.

BTW, not Oracle there is broke and there is broke.

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we have about 8 houses that as soon as we've got someone interested in ours we would go and view. once we've found somewhere we want to put an offer on, then we'll see the financial advisor we've used before. borrowing the 160k we will need, the repayments will be nearly 50% of dh's salary. we will loose my income, but dh will be earning more than double what i was (previously, i was the main breadwinner, dh has been self employed for 13yrs). childcare costs will be nil as, when we move, for a while i'll be a sahm, so once we're settled, if we find we're struggling i can always look for work.

thanks everyone for your opinions, it does help to hear other peoples thoughts