To think this mortgage is far to much for us

[Pine99]

I'm trying to work out if this mortgage would be too much of a stretch for us.
DH and I both 28 work full time and may want to try for a baby in next 2-3 years. His salary is 100k with a performance related bonus usually another 27k give or take and I bring in 88k gross. We currently own and live in a flat with approx 90k equity and 220k remaining on mortgage....we've had it for 3 years and would like to move into a house close to family and work etc. DH thinks we can stretch for about 750k purchase price. We would be making the recommended 20% deposit from savings and rolling the equity in from the flat to be sold. This would give us a mortgage of 650k and im wondering if this would just put too much stress on our monthly cash flow. We try to save a good bit into pensions and rainy day funds which, especially after taxes etc...doesn't leave a lot of breathing room with a loan as big as this. Online calculators and banks all say its "affordable" but i worry about having to reduce lifestyle spending or savings.

AIBU to think we should have a smaller house budget...?

I think I would keep less than rainy day fund and take out a smaller mortgage instead because it saves interest.

We calculated our mortgage based on only one income so that it wouldn’t cause problems should one of us lose their job or fall sick or wanting to stay home with children.

I think it sounds doable but you may have to cut down on some luxuries. For the bigger picture I think it would be worth it

On the side i also waitress at local restaurant and teach gymnastics. DH is a retained firefighter nights and weekends

Is that giving you an income?

If so, you may both have to give that up when you have children.

If it is an extra wage, try living without it, try putting the new mortgage amount away plus £1000 a month for childcare.

At this level of mortgage you’re running two big risks. The mortgage may become unaffordable if a) one of you loses their job b) you have a child. Are your savings in stocks and shares, ISA etc? Are you making the money work for you?

I probably would pay off the present mortgage quickly (6.5k per month over three years) then make a big jump. You’re lifestyle/property requirements will probably be very different when children actually arrive.

You earn £88k and still have a waitressing job on the side?

So how do you do it then? I’m going to guess, subsided housing, UC tops up. Maybe you’re the one who doesn’t know you’re fucking born? Perhaps it’s the OP and her DH’s tax that funds you?

Lol - well this was seven years ago - but no, apart from child benefit, we (still) aren't subsidised at all. Nor have we inherited wealth. We are just bog standard middle income, living within our means. Shocking, isn't it!

NB everyone is a tax payer, and taxes are for everyone.

Oh yes, I’ve just seen it’s an old thread. Not sure how it popped up. My point remains though.

The 'point' that I must be subsidised, which I'm not? Good work!