What standard of living with this mortgage?

[mikado1]

I have a thread going on our regret following a move (no longer under my what I'm on and can't find it) but we're Looking at returning tho prices have climbed.. mortgage would be 1550k net salary 5500k and childcare max 1000k, reducing greatly within a few years. Mortgage until 70yo. What do you think? I've been off for a few years so feel unsure about money. We've scrimped on one salary and though I don't expect the high life,i don't want to scrimp till I'm 70 either!! Advice gratefully appreciated.

Anyone?

I assume those 'k' are a mistake!

I don't really understand the issue. You're saying that after mortgage and childcare you have £3k a month. How can anyone struggle on that? Surely you could reduce the mortgage term and then the 70 issue goes too.

What are your outgoings that make this a worry? I'm sure we can save you some money somewhere!

Could you mortgage till 65 and increase the monthly payments? I think you've got a bit of leeway there.

If my mortgage needed to be paid purely from salary I don't think I'd risk having to work to 70. Lots of things start to affect your health as you get older

Looks more than okay to me.

That mortgage is huge, is that in London? I’m contemplating a £1100 p/m mortgage at the moment and it is daunting. All I can say is do a really thorough budget and be sure you can afford the monthly outgoings. Council tax and bills might be high if it’s a large property.

Presumably your £1000 p/m for childcare is relatively short term (a couple years at most?) and you could then potentially throw the extra at the mortgage to get it down a bit quicker?

I didn’t see your other thread so don’t know the full picture but I hope this helps.

Ok thank you all that helps. I agree with a pp that 70 seems v old to still be paying. The higher monthly rate is high enough to put us off. I know it looks affordable and yet some months I can't figure out where money goes but it adds up, petrol, food, present for teacher, presents for parties,money for school books etc.. will have to see.

£5500 pcm net is £100k gross if one salary - of course you can live well after mortgage and childcare costs of £2550 pcm

Perhaps you could start a monthly budget to see your outgoings and therefore cut back on unnecessary items?

I would think that on an annual salary of £5500K you should have no problem but agree with pp to overpay your mortgage when you can and cut back to 65 rather than 70.

If there is only one salary, why is childcare needed?

Sorry I've confused with the K (!) It's 5k total net income. That's both of us. We were on one income for the last three years hence my uncertainty. Childcare bill would half in 5 years and wouldn't exist in 10..

Remember aged 3 you get 30 hours free childcare a week. My childcare bill plummeted as soon as the youngest turned 3! (Universal unless one of you earns over £100k).

3k a month is plenty to live on.

5k per month wow easy doable. we have a mortgage of 1200 pcm and incoming of much much less

Plenty of people manage on a lot less than that!

Only you know if your figures add up for the lifestyle you want, but just want to say I wouldn't worry about the term length now. We took out a 35 year term to keep our payments down the first 2 years, by the time we remortgage our childcare costs will be slashed (school starter) so going to remortgage term down to 25 years, with the extra equity our interest rate should be better (unless they dramatically go up this year!) too meaning payments aren't hugely more.

Great. Thanks all.