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Any advice, please?

2 replies

Couplycouple · 24/08/2016 22:33

Dear all,

well done and thank you for always contributing and helping people out.

I'll appreciate some views and input from you all. DH and I have just over 6% deposit plus other fees such as stamp duty etc for us to move from a rented place in London to a 450K house in Sevenoaks.

Ideally we would have had more than 6% deposit saved but we decided to invest nearly 30K into our education, training etc to increase our earning power. This has moved our household income to exactly £80K per annum (over £4K per month), in our public sector jobs. Our income should increase with experience as we now have more than enough qualifications. Originally, the plan was to save more deposit before we buy, but I fell pregnant and we are very excited about this.

Apart from my student loan, we have no other loans, hired purchase etc. However, like everyone else, we have the normal household bills such as gas, electricity, landline, mobile phone but no Sky TV. Because of our simple lifestyle, DH is convinced that we can afford the house and his patience for buying a house has suddenly disappeared as my delivery date gets closer.

Yes, we have a 14 years old car, old sofa, most of baby's stuff bought second hand etc and we don't spend on luxury but I am afraid we may not be able to afford the house in the long run. We currently pay £1150 rent per month and at this point, DH would rather pay £2k/month on a mortgage! With baby on the way and everything, I feel scared! Am I being short sighted or unreasonable? Is it doable on this income?

This is unknown territory for me and I'll like to hear from people who already have a mortgage, children etc

Thank you all in advance

OP posts:
NickyEds · 25/08/2016 08:45

What is a general breakdown of your income and out goings? Do two, one renting and one owning remembering that there are costs associated with both (boiler breaking, extra insurance etc for owning, potential move, rent increase if renting). What is your maternity package like? What are you childcare and return to work plans?

delilahbucket · 25/08/2016 13:07

What does your mortgage adviser say? They will delve into your finances and they stress test your income to see if you would cope with a big rise in interest rate. From the sounds of it they may not think you will be able to afford it. Especially as they will have to consider the impending arrival (congratulations by the way). You will either have a very big childcare bill or you will take an income hit, or both if you return part time, and this will impact on whether you can afford it.
If you are feeling you can't then it is likely you can't and you won't get a mortgage anyway.

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